Saab returning to China, but under BAIC’s stewardship
As well as buying old Saab platforms, Beijing Automotive Industry Corporation (BAIC) has gained the rights to distribute Saab vehicles in China. It is still unclear how exactly BAIC plans to distribute Saab vehicles in China, if they plan to set up a new Saab dealership network totally devoted to Saab, or use its existing dealership network that already deals in Mitsubishi, Jeep and Chrysler products under one roof nationwide.
Saab has never performed extremely well in China with only a smattering of dealers in Beijing, Shanghai and Chengdu, as at the time Shanghai-GM were more focused on promoting the Cadillac brand in China and also Buick as a semi luxury brand, thus Saab fell by the wayside in China.
Saab arrived in China in 2002 with high hopes for a soon to be burgeoning market, however sales failed to lift off and by 2008 yearly sales were at just 800 units for the whole country. Under Sypker and BAIC stewardship, Saab China is now aiming to sell 5000 units in 2011 when they finally return to China at the end of the year, and Saab will be aiming at the premium car segment where Audi, BMW and Mercedes rule supreme. As reported before on CCT, Saab plans to sell 5000 cars in the first year in business in China, which is set to account for 10% of their global sales.
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This is a win.
The new 9-5 is an excellent car and has the ability to attract Chinese consumers. 5000? that seems a bit high.
Also, I am not sure about Spyker sales in China but there is clearly a market. Associating saab with a supercar is only going to help.
If BAIC can put some innovative idea to the proven safe platform of Saab 9-3 and 9-5, she may come out with a very competitive priced car yet retained the luxury look and the winning taste for the young and mid-age middle-class Chinese.