Report: Koenigsegg Looking to Sell Fewer Saabs at Higher Prices

Colum Wood
by Colum Wood

According to a report in Swedish business daily Dagens Industri (translated by the folks at SaabsUnited), Koenigsegg, the company’s prospective buyer, wants to take the company more up-market while selling fewer vehicles. This would presumably mean higher profit margins, but the proposed plan doesn’t seem to account for the Swedish automaker to turn a profit until at least 2017.

The plan, as laid out in the newspaper, would be set up in three phases. First, is the 2010-11 period where the company plans to sell 115,000 units at an average value of 189.000 SEK ($27,546). For the record, that number is apparently a “before taxes” price, meaning the actual dollar amount would be higher. Currently, the base price for a Saab 9-3 is $30,360 – so we can expect that $27,546 number to be a few thousand over the $30,000-mark. Regardless, the specifics aren’t the important part here, but rather the overall plan behind them.

The next period stretches from 2012-15, where Saab would sell 80,000 cars at 208.000 SEK ($30,311). According to the paper, this phase would include a special 9-5 Koenigsegg Edition. (Probably without an 806-hp twin-supercharged V8 though). The final phase is from 2016 onward and has a planned retail volume of just 65,000 units but at a steeper 280.000 SEK ($40,804) amount. According to the Dagens Industri source, Koenigsegg wouldn’t plan to make a profit at all during this period.

To justify the higher vehicle cost Saab’s will presumably become more luxurious and more high-performance vehicles, although some of the increased MSRP will be the result of pricey electric and hybrid versions.

[Source: Dagens Industri via SaabsUnited]

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  • Geek Geek on Oct 27, 2009

    A niche car makes sense as well as competing on the basis of other than price. Bigger and higher volume comes with issues and problems and having cars that are in demand that exceeds supply a smart strategy.