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SAAB ANNOUNCES INNOVATIVE DEALER PROFITABILITY PLAN

 SAAB ANNOUNCES INNOVATIVE DEALER PROFITABILITY PLAN
 How are car dealers faring financially in your community? During


these challenging times, what kind of support are they receiving from the factories that provide their product? Check around, and you'll probably discover that it's tougher than ever for your local automotive retailer to turn a profit -- contrary to popular consumer perception.
 Improved car quality has taken a serious bite out of his or her service business, historically a significant profit center for new car dealers. In fact, most dealers have, during recent lean years, counted on this portion of their business to make up for today's reduced sales profits.
 Saab Cars USA, Inc., importer and distributor of the Swedish-built Saab 9000 and 900 automobiles, has now taken the lead in this vital area, by announcing an aggressive three-pronged Dealer Profitability Plan designed to broaden profit opportunities for its 305 franchised U.S. dealers as well as enhance customer satisfaction. Details of this industry first are included in the following press release. AN INDUSTRY FIRST: SAAB LAUNCHES PROACTIVE DEALER PROFITABILITY PLAN
 NORCROSS, Ga., Sept. 16 /PRNewswire/ -- In response to the radical changes the automobile industry continues to undergo during the challenging decade of the '90s, Saab Cars USA, Inc. today announced a bold, three-pronged program to enhance long-term profit opportunities for its franchised dealer body -- which will translate into an improved level of Saab customer satisfaction.
 Saab's ground-breaking program includes the industry's only warranty repair parts reimbursement plan based on suggested list price, the initiation of a generous Customer Satisfaction Index (CSI) recognition program, and a new multi-faceted Saab demo/loaner plan.
 According to William S. Kelly, president and chief executive officer, Saab Cars USA, Inc.: "It's well known that in today's highly competitive automotive industry, dealer profit opportunities -- especially in the service and parts area -- are diminishing due to improved product quality. With the creation of Saab's new Dealer Profitability Plan, we are aggressively investing in the Saab franchise to maintain the strongest and healthiest dealer body with which to support our customer base."
 Kelly further emphasized: "Throughout Saab's recent restructuring, we have consistently stated that improved efficiencies and cost savings would be plowed back into our core business -- the selling and supporting of Saab cars. This comprehensive Dealer Profitability Plan is a very clear example of reinvesting such savings to the best advantage of the Saab dealer body, and thus the Saab owner."
 Warranty Parts Reimbursement Policy Based on Suggested List Price
 Is An Industry First
 In today's retail automotive environment, warranty repairs have displaced customer-paid dealer service work due to extended warranty coverages. With its six year/80,000 mile Major Systems Warranty, and three year/40,000 mile bumper-to-bumper coverage, Saab already provides the most generous warranty in the import automotive segment. With the introduction of the Saab Dealer Profitability Plan, Saab dealers can now realize virtually the same level of profitability from warranty repairs as they can from customer-paid repair operations.
 The Swedish automaker's new policy is an industry first -- Saab dealers will be reimbursed at suggested list price for parts replaced under the provisions of Saab's six year/80,000 mile Major Systems Warranty. Warranty parts reimbursement for five year/50,000 mile emissions system, three year/40,000 mile bumper-to-bumper, and parts and accessories coverages will be paid at suggested list price less 10 percent. Repairs made under the Saab Protection Plan (extended service contract) will continue to be reimbursed at suggested list price.
 Previously, Saab reimbursed its dealers for warranty parts with the traditional industry approach -- dealer net plus a 30 percent handling allowance.
 This ground-breaking Saab policy is not limited to new 1993 models, but applies to all 9000 and 900 models currently under warranty. It goes into effect beginning October 1992.
 Customer Satisfaction Index (CSI) Recognition Program Rewards
 Dealer Excellence
 As quality levels continue to increase throughout the entire automotive industry, the benchmark for an exceptional ownership experience will be set by the degree of customer satisfaction owners enjoy from their local dealers. Those franchises that provide above- average service levels will benefit from increased owner loyalty and repurchase intent.
 Saab Cars USA, Inc. has therefore initiated a program to reward Saab dealers who set the standard for customer satisfaction. Saab dealers will be measured on customer satisfaction every six months, and sale satisfaction every three months based on the results of a series of customer questionnaires. Those dealers who exceed pre-established high satisfaction indexes will be eligible for financial recognition. Payments will be awarded in April and October 1993.
 The first measurement period commences Oct. 1, 1992.
 Saab's New Multi-faceted Demo/Loaner Program Offers Greater Product
 Exposure and Increased Profit Opportunities for Saab Dealers
 Included in the Saab Dealer Profitability Plan are increased opportunities for product exposure in dealer showrooms. Saab dealers will now have access to Saab-supported short-term leases for 1993 Saab 9000 models, which increases the dealer's ability to offer an expanded demo/loaner fleet for prospects and customers. These vehicles can be employed as loaner cars when a Saab is brought to an authorized dealer for service, thus enhancing customer satisfaction. Furthermore, these Saab 9000s can also be used as rental and extended test-drive vehicles.
 In addition to improved product exposure and increased brand awareness, these short-term lease cars will bolster Saab dealer used-car profit opportunities. Participating dealers will take delivery of two to six 1993 Saab 9000 CS or CD models for demo/loaner use beginning October/November 1992.
 Saab Cars USA, Inc., importer and distributor of the Swedish-built Saab 9000 and 900 automobiles, is represented throughout the United States by 305 franchised dealers.
 CONTACT: Steven Rossi or Elke Martin of Saab Cars USA, 404-279-6360.
 -0- 9/16/92


CO: Saab Cars USA, Inc. ST: Georgia IN: AUT SU: PDT

EA-BN -- AT009 -- 0376 09/16/92 18:25 EDT
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Date:Sep 16, 1992
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