Sucks that they'll lose money on it, but it's nice for them to sacrifice money for something like boosting brand image. A strategy reversal since they used to sacrifice image for profits. Hopefully this will pay off in the long-run for them because the Saturn brand needs an image boost more than anything else. The Sky roadster and the 250hp 3.6L Aura sedan with the 6spd auto should help a lot. Sky should be out soon, and the Aura will hit streets sometime next year. They'll have to redo the rest of the lineup as well so we'll see if this turns out to be a success or failure for them.SATURN COUNTS ON MONEY-LOSING SKY ROADSTER
TO REVIVE IMAGE.
GM says it has no hope of making a profit on its new Saturn
Sky roadster but says the car is worth selling if it changes
consumer perception about the struggling brand.
Saturn hopes to sell 10,000 of the little two-seaters
annually. But GM CEO Rick Wagoner tells the Chicago
Tribune the Sky won’t be profitable—even if Saturn sells
every one it can make for five straight years.
Such is the risk of “halo” cars, low-volume, often
performance-oriented models designed to generate buzz
that translates into sales of more practical vehicles carry-
ing the same brand.
The Tribute points out that two recent halo cars, the
Chevrolet SSR pickup and Ford Thunderbird, have
fizzled. Chevy targeted annual sales of 13,000 SSRs but
sold only 9,700 of them in 2004. Ford’s retro Thunderbird
started strong but soon faded, with sales last year dropping
34% to 12,000 units.