•Amy Bolyard Amy Bolyard •R.J. GimblR.J. Gimbl •Spence Graham Spence Graham •Todd Hannah Todd Hannah •Bill Long Bill 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 1985- Spring Hill, TN selected for Saturn’s manufacturing facility ($1.9 Billion for plant construction, equipment, and tooling)

• July 1990- 10:57am, 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 1990- 1st truck load of vehicles shipped from Tennessee to California

• March 1992- Sells its 100,000th car• Sept. 1993- Produces 500,000th car• June 1995- Produces 1 Millionth car• January 1997- Produces 1.5 Millionth car• January 1999- 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-1SL-1

•MSRP - $14,365

•Well Equipped and Affordable

•124 Horsepower Engine

•Tight, Sport-Tuned Suspension

SL-2SL-2

SC-2SC-2

•MSRP - $17,115

•3rd 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-1SW-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 • 145.6 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 • 154.1 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 • 161.7 Vehicles Sold per Dealer