Saab Brand Presents Uphill Climb for Potential Buyers

ALG Analysis shows brand value began to falter years before brand was under review; however, consumers may find good value in purchasing a Saab

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ALG

Feb 24, 2012, 03:03 ET

SANTA BARBARA, Calif., Feb. 24, 2012 /PRNewswire/ -- While the Saab brand continues to be in limbo, consumers may find value in purchasing a Saab – if they can find one. According to a recent analysis conducted by ALG, the industry benchmark for vehicle values, the value of the Saab brand as well as the residual value of their vehicles, has likely bottomed out. Given the retail discounts currently available and the likely availability of parts, now is the time for savvy consumers to pounce on the remaining inventory.

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While consumers may be able to extract value from the purchase of a Saab, potential buyers of the brand have more of an uphill battle. ALG's Statistical Brand Value analysis shows a monumental collapse of the brand's weight with consumers. In 2001 Saab's commanded a premium of more than 20% compared to the industry average. In 2011, they had to make up a 20% brand deficit.

"The value of the Saab brand has been declining since 2001," said Eric Lyman, Vice President of ALG.

"Any company considering purchasing Saab's assets, including the brand, should take into account just how far the brand has fallen and how much credibility the brand has lost."

The analysis looks at other brands that have been shuttered in the past decade and applies those learnings to Saab's situation. While other brands with distinctive personalities, such as Hummer, have seen values rise over time due to a lack of supply, that factor is unlikely to help Saab.

"Despite its early cult-like following similar to Hummer, Saab's wind down is much more like Oldsmobile," said Lyman. "Consumers have plenty of alternatives to satisfy their needs."

To download the complete whitepaper, click here.

Based in Santa Barbara, California, ALG is a leading provider of insights and consulting services to the automotive industry. ALG publishes the "Residual Value Guidebook" – the standard for residual value projections in North America, and has been forecasting automotive residual values for more than 45 years in both the U.S. and Canadian markets.

SOURCE ALG