Amy BolyardAmy Bolyard R.J. GimblR.J. Gimbl Spence GrahamSpence Graham Todd HannahTodd Hannah Bill LongBill Long
Concept began in July 1982 in response to increasing import competition and a traditional adversarial relationship between union and management Partnership formed between General Motors (GM) and United Auto Workers Union (UAW) July Spring Hill, TN selected for Saturn’s manufacturing facility ($1.9 Billion for plant construction, equipment, and tooling) July :57am, GM Chairman Roger Smith and UAW President Owen Bieber drive red metallic four door sedan off assembly line Saturn’s Yearly Homecoming draws an excess of 40,000 people per year
October st truck load of vehicles shipped from Tennessee to California March Sells its 100,000 th car Sept Produces 500,000 th car June Produces 1 Millionth car January Produces 1.5 Millionth car January Produces 2 Millionth car
MSRP- $12,955 Well Equipped and Easy to Live with Estimated EPA of City 29 and Highway 40mpg with manual transmission SL-1
MSRP - $14,365 Well Equipped and Affordable 124 Horsepower Engine Tight, Sport-Tuned Suspension SL-2
SC-2 MSRP - $17,115 3 rd Door for Easier Access to Rear Seat Road Hugging Suspension System 5 Speed Manual Transmission 1.9 Liter Dual-Overhead Cam Engine
MSRP- $15,615 Roomy and Comfortable Standard Air and Lumbar Seats Flexible Door Panels to Prevent Dents- Easily Removable and Replaceable SW-1
Higher consumer loyalty rate than Toyota and Honda with 45.6% of Saturn owners repurchasing a newer model Saturn No Hassle/No Haggle Buying Experience Rank highest in Sales Satisfaction (Nameplate Ranking) from 2000 JD Power and Associates Price Quality Lack of Dealers Lack of Support from General Motors
Free Spirits SC-2 (2 Door Sport Coupe) Commuter SL-2 (Fully Equipped Sedan) New Families SW-1 (Station Wagon) Economizers SL-1 (Economy Sedan)
Projected car sales of 60,700 Production was 56,000 vehicles $100 rebates on the SL-1 and the SC-2 7.5% finance rate Advertising budget of $22.4 million Targeted Free Spirits, Commuters, New Families.
Actual Vehicle Sales 53,016 Net Contribution -$17.6 M Gross Margin $22.5 M 8.3% Unit Share 316 Dealers 168 Vehicles sold per Dealer
Projected car sales of 58,200 Actual car sales were 61,437 Production was 57,000 Offered $250 on the SL-1 and SW-1 models 3.9% finance rate Advertising budget of $25 million Targeted Suburban and Urban Consumers Upgraded quality (60%) price (40%)
Actual Vehicle Sales 61,437 Net Contribution $8.7 M Gross Margin $65.6 M 9.7% Unit Share 316 Dealers 194 Vehicles sold per Dealer
Projected car sales of 60,400 Actual sales were 55,504 Production was 57,000 Rebates of $500 on SW-1 and SC-2 and $150 on the SL-1 2.9% finance rate Advertising budget of $24 million Price was increased by 1% as price and quality upgrades took effect. (Inflation 3%)
Actual Vehicle Sales 55,490 Net Contribution -$0.1 M Gross Margin $57.8 M 9% Unit Share 381 Dealers Vehicles Sold per Dealer
Projected car sales of 62,900 Production was 57,500 $1000 rebate on SL-1 and SW-1 and $500 rebate on SL-2 and SC-2 models 1.9 % finance rate Advertising budget of $24 million New model introduction rejected
Actual Vehicle Sales 61,654 Net Contribution $20.8 M Gross Margin $92.5 M 9.9% Unit Share 400 Dealers Vehicles Sold per Dealer
Projected car sales of 62,500 Production was 57,500 $1000 rebate on the SL-1, $750 on the SW-1 and SC-2 1.9% finance rate Advertising budget of $24 million
Actual Vehicle Sales 64,683 Net Contribution $39.3 M Gross Margin $109.6 M 10.6% Unit Share 400 Dealers Vehicles Sold per Dealer