IMPORTANT NEWS: National Electric Vehicle Sweden has agreed to buy the assets of Saab Automobile and the sale is expected to be finalized during the summer.

Friday, July 8, 2011

COO of North America believes in quick profitability

COO of Saab Cars of North America, Tim Colbeck, told journalists at a recent press briefing that he believes that Saab can turn the negative trend of lately quickly into profitability.

"I think we're in a position where we can have strong cash flow and reach profitability pretty quickly," Colbeck said and continued "Remember we have a very low break-even."

This low break even point should be around 80,000 cars. Last year Saab sold about 30,000 cars. This year the goal was to sell 80,000, but with the manufacturing plant stopped for three months so far and no restart before August, reaching 80,000 this year will be impossible.

But Colbeck still has a strong belief in Saab. "I'm more convinced now than ever the brand will survive," Tim Colbeck said.

The troubles in Sweden of lately have also affected the US with delayed deliveries of the 9-5 and 9-3. But according to Colbeck, sales are expected to increase now that dealers are taking delivery of the new Mexico built Saab 9-4X.

Colbeck forecasted that US sales could easily jump to 30,000 units in the next couple years.