Brand Survival - The fates of Saturn, Saab, and Volvo

There was a hint of anticipation in some enthusiast circles last week when the Detroit 3 submitted their plans in Washington, D.C. Long the subject of Internet debate, these plans shed a light on which brands might be heading for the chopping block. Two GM brands seem most in jeopardy—Saab and Saturn—and Ford is reportedly considering selling Volvo. Looking back through old Consumer Reports road tests, you can see the shortcomings in these brands' line-ups that led to their weaknesses.

Let's start with Saab. We tested our first Saab 9-5 back in October, 1998. We called it "well thought-out and innovative." The problem now, however is that the 9-5 that you can buy brand new today is basically the same car with only some upgrades. Eleven model years is an eternity, especially in a competitive luxury sedan market. For most models, that would be more than two full generations.

Likewise, Saab built variations of the same 900/9-3 from 1994 until 2002; most competitors saw at least one full redesign in that time. Many of the complaints we had with the 900SE we tested in August, 1994, were the same as with the 9-3 we tested in the February, 1999 issue.

Even the current 9-3, Saab's volume model, has been on sale since 2003 (we tested an Aero model in July of that year) with only minor tweaks along the way. Again, almost every direct competitor has been introduced or fully redesigned since then. With a dated line-up essentially consisting of only two sedans/wagons, it's no surprise that Saab sales have lagged.(See our Saab 9-3 and 9-3 convertible road test videos.)

And adding a lightly modified Chevrolet TrailBlazer SUV to the lineup didn't exactly help. Our brief experience with the relatively rare 9-7X is that it's probably the best version of this platform, but that really isn't saying much.

Next up: Saturn, the company that was intended to beat back Japanese small car imports. The first Saturns, which we tested in 1990, were a solid effort at the time. They even proved to be quite reliable. But then nothing much happened. Our March 1996 review of the restyled SL1 noted that the Saturn "used to be competitive, but it's fallen behind the times."  Amazingly, the SL we tested in September 2000 was basically the same car; that review said simply "outdated and outclassed."

When Saturn finally replaced the 12-year-old S-Series with a new small car, the Ion, it turned out the wait wasn't really worth it. Our March, 2003 test found that "the Ion is very disappointing for a new car." Now, Saturn's current smallest car, the imported-from-Belgium Astra is a vast improvement over the Ion. But it suffers from shortcomings as a result of importing an aging Eurocentric design. Brought to America late in its design cycle, the choices of drivetrain were limited, and it would be hard to justify investing in major changes for a short model run.

It's tough to build a brand with only one car line. But Saturn was slow to add larger models as GM held off on investing into the brand. (Starting from the ground-up, including a new factory, cost billions.) When Saturn did get around in 2000 to adding a larger model, the L-Series, it was a lackluster effort based on an older Opel design. The January 2003 review of the face lifted L200 noted "The Saturn L-Series added nothing extraordinary to the class when it made its debut three years ago; it now feels a generation behind." Not good.

Saturn's Vue small SUV also suffered. Launched in 2002, we said that "Saturn's first SUV has potential but feels half baked." Despite adding a Honda V6 in later years, seat comfort and fit and finish remained subpar, and the Vue didn't get stability control until its redesign for the 2008 model year. That redesign improved interior quality and handling, but a hefty curb weight added up to only 17 mpg in our tests--low for a small SUV.

While Saturn's 2007 Aura won the much-hyped title of North American Car of the Year, we found it to be thirsty with the either V6 engine. It took almost two years after its launch to offer a more efficient four-cylinder – keep in mind that most buyers of family sedans opt for smaller engines. Rear seat room remains tight for a family sedan, especially compared to its platform-mate, the Chevrolet Malibu. (See our Saturn Aura road test video.) It wasn't until the 2007 Outlook SUV that Saturn had a truly-competitive product – and then sales of that model were out shadowed by those of the essentially identical GMC Acadia and similar Buick Enclave.

So that presents a problem. Keeping Saab and Saturn relevant demands new product. Some of that product is in the pipeline, with a small 9-4X SUV for Saab and a version of the well-received Opel Insignia for Saturn. But both of these vehicles are likely delayed or in limbo, since it's hard allocating precious resources to struggling brands.

Volvo's also been short on resources. Like Saab, their products remained unchanged for a very long time. We first tested Volvo's S60 back in 2001; the current S60 scores so low that it's not recommended. Simply put, there are a lot of better ways to spend your money.

Volvo's small S40 was introduced in 2000 after being on sale in Europe for four years. A 2005 redesign was "much better than the model it replaced," but "overall the S40 trails the competition." Volvo's large sedan, the S80, hung around from 1998 until 2006. The redesigned 2007 S80 didn't "measure up well to its competitors" in our November, 2007, report. At least Volvo's XC70 wagon and XC90 SUVs were reasonably competitive and sold well.

It has also taken years for Volvo to shake reliability problems. The S60, V70, and S40, and XC90 all suffered from problems when they were introduced, and the problems continued for several years after. On the plus side, one benefit of building the same car for so long is that many of the bugs get worked out – most of these models now have average or better reliability. (See our Volvo C30, C70 convertible, S80, and XC70 road test videos.)

Who knows what the future will bring for these brands. A new buyer might make investments in new product. Or some of the brands may simply disappear. No doubt each of these brands still maintains some loyal fans. But brand survival has to boil down to competitive product.

—Tom Mutchler

Discuss Saab, Saturn, and Volvo in the forums. See how brands compare in Reliability and Owner Satisfaction.