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Saab CEO: Company will be profitable in 2012

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Saab CEO: Company will be profitable in 2012

By MARK PHELAN

FREE PRESS AUTO CRITIC

Saab has reduced its breakeven point dramatically since GM sold it early this year, the Swedish automaker's CEO said Thursday.

Thanks to a combination of cost cutting and new models, CEO Victor Muller promises Saab, whose North American headquarters is in Royal Oak, will turn a profit at global sales of 80,000 to 85,000 vehicles a year by 2012. Saab's current breakeven point is 105,000, sales, down from 130,000 when GM owned the company, he said.

Saab will be profitable in 2012, Muller told journalists late Thursday.

Saab's sales are disastrously low this year, largely because GM stopped building cars and began to liquidate the company when it appeared no one would buy the boutique Swedish brand. Saab sold just 4,371 vehicles in the United States through November.

Muller expects Saab's worldwide sales to hit 80,000 next year, when it has plenty of units of its new 9-5 sedan and station wagon and 9-4X crossover to sell. The 2011 9-5 sedan is just reaching U.S. dealers. The 9-4X goes on sale in May.

Muller expects the U.S. to account for about a quarter of Saab's global sales in the future.

LINK:

http://www.freep.com/article/20101209/BLOG40/101209077/1210/business01/Saab-CEO-Company-will-be-profitable-in-2012

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Thanks to a combination of cost cutting and new models, CEO Victor Muller promises Saab, whose North American headquarters is in Royal Oak, will turn a profit at global sales of 80,000 to 85,000 vehicles a year by 2012. Saab's current breakeven point is 105,000, sales, down from 130,000 when GM owned the company, he said.

Interesting but as implied in the text quoted (the 'and new models' part) it will only work if the contribution margin on each vehicle sold is higher. Cost cutting has a limit below which they cannot go.

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SAAB STILL TARGETING PROFITABILITY IN 2012

By Drew Johnson

Saab was recently forced to lay off 200 workers and slash its 2010 sales forecast, but the Swedish automaker says it’s still on track for profitability in 2012.

Saab CEO Victor Muller reiterated on Thursday the company’s plan to be profitable by 2012. Muller says Saab needs to sell 80,000-85,000 units per year, which is a vast improvement over the 130,000 unit mark needed while under the leadership of General Motors.

Despite the lower breakeven point, it remains to be seen if Saab will actually be able to reach that mark in just two short years. Saab originally planned to sell 60,000 vehicles this year, but was forced to reduce that target to just 30,000 units. Saab expects to sell 80,000 vehicles next year, which would represent a near threefold increase.

However, production of the 9-5 sedan is expected to ramp up in the coming months, and the new 9-4X will hit showrooms in May, giving the Swedish brand a fighting chance for survival.

link:

http://www.leftlanenews.com/saab-still-targeting-profitability-in-2012.html

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