Small Saab a reality

Jan Åke Jonsson, Saab Automobile's Managing Director has confirmed that the Swedish marque will add a compact car. The Saab boss revealed at last week's local launch of the updated 9-3 that the smaller Saab, which will be positioned under 9-3, will be adapted from GM architecture.

Jonsson believes a compact Saab variant (nicknamed 9-1) is crucial for the success of the brand. He says the company wants to define a clear direction for customers, by simplifying the line-up while maintaining attention to Saab's original design language.

"You could say we've been our own worst enemy with not always being consistent in utilising the strength of the brand. We've changed direction a couple times and we felt we should focus on continuing brand strength," says Jonsson.

"We've had hatchbacks, semi-hatchbacks [9000 model]... We've had turbos but we had no diesel at one point, et cetera. [Now] We're going back to the roots of the brand."

Saab's small car 'history' has been chequered. The brand launched a Subaru Impreza-based 9-2/9-2X small car in selected markets including the USA in 2005. The model was less than successful with most pundits condemning the 'Saabaru' as a cynical badge-engineering exercise. So too the maker's US-market-only 9-7X -- which grafted a Saab front-end onto to a mid-sized Chevrolet SUV.

Saab will persist with the SUV market, however, with an all-new non-Chev all-wheel-drive 'crossover' expected before 2010.

"What we've identified as the priority in terms of market expansion is, of course, to renew the 9-5 but at the same time we see the crossover segment expanding, especially in the premium class," says Jonsson.

Jonsson says the GM ownership of the iconic Swedish marque has been positive.

"During the last two-and-a-half years we have enjoyed great benefits from learning how to utilise the General Motors' resources. This [GM's involvement] has also given us access to not only tremendous technology development but benefits in sales operations in other countries."

Saab sales hit a peak in 2006 with 133,000 sales worldwide. Saab's major markets include the USA, UK and Sweden but the company has also made gains in Australia, 'Mediterranean' markets and developing markets such as China and Russia.

Sales for 2007 haven't been as good but Jonsson reasons that the changeover for its volume-selling 9-3 has slowed progress.

However, Jonsson says the release of the new 9-3 (more here) as well as the introduction of the new compact '9-1' and all-wheel-drive crossover model will promote a sales recovery.

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