Saturn's Gamble Made Aura A Hot Seller

Anthony Fontanelle
August 13, 2007

The comparison trend in the auto industry is said to be risky. But for Saturn, one of the most overlooked brands of General Motors Corp., it is worth all the risks. The automaker said that its comparison campaign has helped jump-start its renaissance.

From early June through July, most Saturn dealerships displayed and offered test drives of the new Aura sedan. But the test drive is not only limited to the Aura. Along with the automaker’s sedan are top-notch midsize cars such as the Toyota Camry and the Honda Accord. Potential customers are given the chance to test-drive the cars for comparison. Eventually, the risky gamble, as evidenced by the increase in sales, is paying off.

In just a year and a half, ending in the fourth quarter of this year, Saturn will have launched a completely new lineup that includes the Sky roadster, Aura sedan, a hybrid version of the Vue SUV, the Outlook crossover, a redesigned 2008 Vue, an Aura hybrid and the Astra compact car, reported the Free Press.

Saturn’s fresh lineup has contributed to the 16 percent increase in sales despite the fact that American light vehicles were down by 3.2 percent. The Saturn AC condenser is blowing some positive breeze and it is very favorable to the automaker.

Data from auto shopper Web sites Edmunds.com and Kelley Blue Book indicate that the initiative, combined with Saturn’s fresh and expanded lineup, has helped attract some shoppers who would not have considered the brand previously.

"Their consideration seems to be going up," said Jack Nerad, an executive market analyst at Kelley Blue Book. "But rebuilding a brand is a slow process. It doesn't happen in days, a model year or perhaps even two model years.... Still, as that consideration goes up, some of those consumers will buy. Without consideration, you don't get buyers."

In June, Saturn saw an increase, from seven percent to eight percent - in the number of car shoppers who considered both an Aura and a Camry, revealed Edmunds.com reports. A one percent increase in cross-shopping in one month may not sound like a huge success, but in the competitive world of consumer goods, it counts, said Edmunds.com industry analyst Jonah Brown. "That's a real victory for GM," Brown added.

It does indicate that things are improving, Nerad said, but it also shows that no matter how good a new vehicle is or how much a brand improves, it takes time to persuade consumers to even consider it, let alone buy one. "It takes a long time to combat a competitor" who makes so few missteps, Nerad said. "Saturn's been successful at getting started at it."

Dealers are jubilant about the brisk sales. Carl Galeana, whose dealerships include Saturn of Lakeside and Saturn of Warren, called the side-by-side-by-side test drive a smart marketing move. "People liked it when they came in the showroom," said Galeana. "I don't know if it sold any cars."

Sarah Woolson, tge general sales manager at Saturn of Ann Arbor, agreed that people were impressed by the promotion. "We definitely had people coming in because they were considering all of the cars," Woolson said. "And we had some people who made their decision toward the Aura. Some chose the others."

Dan Keller, Saturn's marketing director, said that it is too early to have processed all of the measures. But he said that GM generally was pleased and would continue to do what it takes to build consideration of the Saturn brand. "The industry took a nosedive in June and July, but the Aura held market share. It came out quite positively for us," Keller said.

Source:  Amazines.com