In the land of oversized SUVs, the next big thing may be small cars. GM's Saab division has announced it will offer a small car in North America next year, becoming the latest premium-priced carmaker to go down-market to lure younger buyers.
In GM's first collaboration with Subaru's parent, Fuji Heavy Industries, the new Saab 9-2, based on Subaru's all-wheel drive cars, goes into production in Japan next spring.
Saab expects to start producing about 7,000 of the 9-2 annually, with initial sales in North America only. The base 9-2, with a 2.5-liter four-cylinder engine, will be based on the Impreza sedan; the high-performance model with a turbo-charged 2.0-litre four-cylinder engine will be based on the sporty Subaru WRX, which has won strong reviews.
Perhaps tempted by the success of the BMW-revived Mini, more carmakers plan to bring smaller cars to the US. VW's Audi plans to bring its A3 to the US in a few years, and Mercedes has repeatedly said it's considering importing its A-Class and Smart cars. BMW has shown a concept version of its forthcoming 1 Series, priced below its 3 Series.
"It's really an opportunity to bring buyers in at an earlier age then they would be able to," says Mike Robinet, vice president of global forecast services with CSM Worldwide, which consults with the car industry. But the strategy is not without risks. Denny Clements, group vice president of Toyota's Lexus luxury division, said the Mercedes "star" badge could lose its exclusive appeal by mass marketing. "If I buy a Mercedes and I wake up one morning and the teenager across the street has a Mercedes, what does that do to the brand?" he asks.
- Financial Times