How To Say 'Suicide' in Swedish: 2010 Saab 9-5 Is $50 Grand
By Michelle Krebs April 28, 2010Saab fans were hoping it wouldn't happen, but it has: the all-new Saab company (now owned 
by Spyker Cars NV), last week said it was pricing its first all-new car, the 2010 Saab 9-5 Aero, at a preposterously ambitious $49,990, with destination.
It's not as if Saab built a lot of brand equity in the past half decade, as former owner General Motors Co. lost all interest, cut off investment and let the products plod along totally in excess of humane replacement cycles. Then Saab twisted in the wind for a year, along with other now-discarded GM brands, as GM, the Swedish government and Saab itself scrambled to find a buyer to keep the marque alive.
So against that backdrop, the first all-new Saab since the days when jets took over from turboprops is priced against no-name competitors like the new 2011 BMW 5 Series, the new-generation of which actually got a price reduction and starts at $44,500. The 9-5 Aero costs more than an all-wheel-drive Lexus GS 350.
In comparing with the likes of the new 5 Series and its misleading $44,500 entry price, true believers will point out Saab's $49,990 number is for the 9-5's range-topping Aero trim, which includes the turbocharged 2.8-liter V6 and all-wheel drive, plus a lot of other features and content, including a six-speed automatic.
But none of that is exactly ultra-luxury specification these days. Saab's most desperate need is to remind buyers it's now back from the dead -- and give what few intenders might be aware of that fact a serious incentive to buy.
It's a breeze to option the entry-level 5 Series past the the top-of-the-line 9-5 Aero's starting price, but the Aero also costs thousands more than an all-wheel-drive version of former owner GM's Cadillac CTS4 and is $6,000 more dear than the all-wheel-drive TL from Acura, a brand some believe might end up being one of the new Saab's most direct competitors in terms of positioning and sales volume.
The former Saab and its hapless GM handlers never learned much from misspent years trying to insinuate parity with the German and Japanese luxo-performance establishment, yet the "new" Saab is headed down the same path. Saab should have the designed the new 9-5 - effectively a rebadged version of GM's Opel Insignia and Buick LaCrosse - with a special slot on the hood to hold the incentive money that inevitably will reside there.
"Spyker is going to find out a whole lot about the world of incentives with pricing of this nature," said Edmunds.com pricing and industry analyst Ivan Drury. "The 2010 9-5 is an all-new and significantly upgraded car, but GM couldn't sell the former 9-5 with a lower starting MSRP combined with some of the highest incentives in the business."
Saab has forgotten that even in its best days of the recent past and despite the fervor of its loyalists, for years it had been losing ground to better-made, better-equipped and better-marketed rivals. Saab was losing relevance. Sales in the U.S. dribbled to 8,680 last year.
It takes a long time to claw back that relevance, even for a brand with such a rich enthusiast history. Saab needed to rekindle interest in the brand by starting the 9-5 Aero at the under-40-grand price it's promising for the lesser, 4-cylinder 9-5 coming later.
Instead, Saab's new owners appear to think that because they have something new to sell, confidence in the brand has been instantly restored.
Out-of-the-gate pricing for the 9-5 Aero that exceeds that of numerous well-established rivals is not a realistic strategy.
Everyone wants you to win, but you've got to earn it, Saab. Anybody over there remember the pricing of that first Lexus? It was so aggressively, market share-stealing low it fostered dumping charges from the competition. - Bill Visnic, Senior Editor
Edmunds.com analyst Ivan Drury provide the pricing research and analysis for this post.
Photo by Saab Cars North America Inc.
The new Saab company is introducing the new Saab 9-5.
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Click here to comment on this entry.i may personally agree with the judgments, but there is far too much editorial in this article to make this an objective piece. Spyker may indeed be ultimately forced to discount, but this is their strategy, chances are they are aware of competitive vehicles as well, but they have their own logic, plus innate product and cost knowledge known only to them. Only time will tell if their pricing guidelines are to to be judged advantageous or not. If Edmunds is going to fault them before they are even out of the gate, this posting should be labeled as an editorial.
notvery, of course this is an editorial. Look at her mini bio posted next to every article in Inside Line: "Michelle Krebs, veteran automotive-industry authority, joins Edmunds editors, analysts and data experts to provide news and commentary." Commentary. This is already labeled as an editorial.
Pricing relative to the other offerings from Spyker is dirt cheap, really. Comparably equipped, the 9-5 will be in Volvo S80 range which I believe will be the most or second most cross-shopped competition along with Audi's A4 & A6.
@j84ustin, It was Bill Visnic whom actually wrote the article, or editorial as *notverysmart* sees it. But his by-line says, "Senior Editor" rather than "Ace Reporter" or something, so he can opine freely.
As a footnote, the all new from the tread up SAAB 99 was introduced as a 1972 model; some fifteen years after the major commercial airlines converted from turboprops to jets.
I believe the comment about jets was rhetorical excess well as a dig at the "Born From Jets" slogan. There have been several all-new SAABs since the jet age commenced.
Having long exposure to the automotive industry, I couldn't help but be struck by the absolute stupidity of this article. Ms. Krebs, the "Veteran Automotive Industry Authority" should be fired for incompetence. A Lincoln MKS? You have to be kidding. An Accura TL? If the author has an area of talent, she should stick to that instead of trying her hand at writing automotive opinion.
Funny, I've recently priced half of these cars and was shocked as sh&* at the sticker price! At lease $10,000 over what's quoted here. I want to know where Miss Michele is buying her cars! LOL
You can't compare a Swedish car to Japanese cars, thats ridiculas. You have to compare it to Volvo and Audi, and when you do so you will realise its not so expencive.
Don't see what's the problem with Kreb's comparison. And why should Saab be only compared to Volvo and Audi? And that certain someone who claimed to have long exposure to the automotive industry shouldn't bother commenting against Kreb's article because he clearly showed his lack of knowledge in this area. And what's so ridiculous about comparing a Swedish car to Japanese cars? What's wrong with the TL (AWD, powerful V6) and the MKS (AWD, powerful V6)? Afterall, this "new" 9-5 is nothing more than a rebadged LaCrosse.
(However, it is ridiculous for not knowing how to spell "ridiculous" and "realize"... even a 5th grader should be able to do that!)
For Krebs and all the other unenlightened "Auto Enthusiasts" I would like to point out that although the new 9-5 shares it's "architecture" with Insignia and Lacrosse it is certainly not just rebadged. Let me please explain this to you. The "architecture" mainly comprises the structural shell (frame) and other selected components. The components that a driver would "feel" are completely different. The engine, suspension, interior, wheels, sheet metal as wheel as important features [drive sense, smart beam headlamps, etc. (I bet you don't know what that is, perhaps you should do some "research"] are not shared and are unique to SAAB. As far as comparing to Asian cars, yes, sure, do it!. But remember, if price is your only concern, SAAB will never ever win and it never ever has in the past either. If you want a car that isn't absolutely everywhere you go, of course you must pay a premium. It's called low production (low production=expensive, for you business majors), you just simply can't make low production cars appealing from a pricing only standpoint. Whether or not this new car is appealing from other standpoints will be the determination of the buying public. And quite frankly when you option out the competition to the standard of this car (this is the absolute top of the line Aero with all options included, lesser optioned cars will be available the following year, the difference is not so stark. And for some people (but, for most not), those "intelligent" differences from the mega production cars are worth the price. What are the intelligent differences? Well, there is a long list of little SAAB things that every SAAB owner knows, but to name a few; it is impossible to lock your self out of the car, the floor mats have been anchored with metal studs since the 70's, almost impossible to kill the battery since the 70's the headlights turn off with the ignition, orthopedic quality (heated) seat structure, my current generation convertible will take TWO shopping carts full of paper bagged groceries in the trunk with top up, and with the top down it will take one full shopping cart of groceries. This probably explains why the major demographic for SAAB purchases are professionals, particularly college professors. That may sound SnAABy, but that's the facts ma'am. We don't toot our horn 'till someone rear ends us.
hmmmm... low production is being used... hmmmm... oh wait, Subaru and Isuzu should be selling cars in the $60,000 range!
hmmmm... major demographic for SAAB purchases are professionals, particularly college professors... hmmm... now this is even more interesting than that above concept.
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