Monday, March 12, 2012

Living larger Saturn's new L-series targets mid-size market

Now that Saturn Corp. has sold more than 2 million small cars inits first decade, the carmaker is betting its customers are ready tomove up to a bigger mid-size L-series model.

"We have 2,000 orders already," said Julie Hamp, a Saturn Corp.vice president from Michigan. "We plan for the plant to build200,000, up to its 220,000-car capacity, this year."

Saturn unveiled its LS sedan and LW wagon last month.

S-series wagons, Hamp said, comprise 10 percent of Saturn'sproduction and she hopes the L-series introduction will boost totalwagon sales nearer to 20 percent. The LW1 has a suggested $18,635sticker, and the LW2 is priced at $21,360.

"Wagons are back in, but at the high end," Hamp said. "So we'recompeting with Audi, Subaru and Saab."

Suggested prices for the sedans range from $15,010 for the no-frills LS up to $20,135 for the LS2.

Saturn still will make its smaller lines, including a three-doorcoupe that Hamp said has had "phenomenal" sales.

Tom Hodge, general manager of Saturn of Knoxville, Tenn., saidsummer production of the first 2,000 LS and LW models will bringSaturn into the largest automotive market segment, because mid-sizevehicles comprise one-fourth of U.S. sales.

Saturn's S-series competes in the "small car" and "sports"segments, comprising 17 percent of U.S. car buyers. So the additionof the L-series puts Saturn in more than 40 percent of the market andlets some of Saturn's two million current owners "step up" to alarger model.

Hodge said Saturn owners buy a second Saturn 40 percent of thetime. But when they buy other makes, they often buy or lease a mid-size General Motors model. So Saturn will market its L-series usingthe slogan, "Because everyone eventually needs a bigger car - evenus."

Hamp said Saturn intends to get a jump on the 2000 model year and"establish a strong presence" in the mid-size market.

L-Series models feature a standard 2.2-liter, 4-cylinder enginethat delivers 137 horsepower. LS2 and LW2 models offer a 3.0-literV- 6 engine rated at 182 horsepower.

A 5-speed manual transmission is standard on sedans with 2.2-literengines. A 4-speed automatic, optional on LS, is standard with the3.0-liter engine.

Hamp said Saturn wants to see its L-series succeed before itintroduces a sport-utility vehicle.

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