Analysing the competition

Many comparisons have been made between the GM management of Saab and the Ford management of that other Swede, Volvo.

In contrast with Saab’s contribution to GM (usually written in red pen by the beancounters), Volvo contributed $700 million to Ford’s bottom line last year.

The Detroit News has a good writeup about the way Ford has enabled Volvo to continue it’s success and maintain its identity.

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2 Comments

  1. Hey — if you play in the whole market, you sell more vehicles!! Volvo’s XC90 is an excellent vehicle, especially for an SUV. See: http://www.business2.com/b2/web/articles/0,17863,515501,00.html (Anti-Saab comment warning!) Saab has not ever offered an SUV nor have they sold a wagon in the US in recent memory.

    Additionally, Volvo has managed to keep fresh designs coming while maintaining and expanding their distribution. Saab did poorly in these areas.

    I conclude that Saab’s malaise just prior to GM’s purchase of Saab is as bad as anything GM has or hasn’t done since they took over.

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