NADA MAKE MEETINGS

Saturn is expected to be GM's growth brand

SAN FRANCISCO — Saturn executives told dealers at the make meeting that General Motors expects its growth over the next five years to come from Saturn. Saturn's goal for 2008 is a slight increase in sales.

The boost will come on the momentum built with new products such as the Aura sedan, Outlook crossover and recently launched Astra small car, dealers were told during the meeting.

Dealers also can expect to earn higher average transaction prices this year, brand leaders told dealers.

"Their sales plan is they're saying there will be a slight increase in overall sales via a shift from full-sized trucks to cars and small SUVs," said John Pitre, general manager of Motor City Auto Center (Pontiac-Buick-GMC-Saturn-Lexus) in Bakersfield, Calif.

Highlights
• Continue the sales momentum to increase sales volume

• Boost dealer profitability with higher average transaction prices

• Emphasize hybrid and green technology

Saturn had a 12.6 percent increase in retail sales in 2007 vs. 2006, said Jill Lajdziak, Saturn's general manager. The average transaction price was up by $7,000 in 2007 compared with 2006, she said, and retailer profitability grew by 24 percent last year compared with 2006.

Saturn's total U.S. sales for January rose 12.1 percent to 15,359 from the same period a year earlier.

"We've got momentum on our side," Lajdziak said.

By the end of the month, all Saturn retailers will have the new Astra hatchback in stock, Lajdziak said. The brand is considering putting conquest incentive cash on that car in certain markets. That means if a consumer comes in with a non-GM product, the dealer will have extra cash to offer the customer to close the deal.

Later this year, Saturn will launch the Two Mode hybrid Vue and is considering a plug-in version of the Vue by 2010, Lajdziak said.

Pitre said his average transaction prices for Saturn have gone from $17,000 in 2006 to $21,500 last year. Of all his brands, other than Lexus, he is most optimistic about Saturn. He said his Saturn profits have gone up year-over-year.

Said Pitre: "Our Saturn store remodel will be done in July, so that's a sign that we're very bullish on the brand."

You can reach Jamie LaReau at jlareau@crain.com.


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