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Has the Tide Turned for Saturn?

Date: June 1999

Source: Japan Auto Trends

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Has the Tide Turned for Saturn?
GM Unit Reports 16 Percent Increase in Sales

Saturn of Japan has distinguished itself this year as the only U.S-owned automaker to actually report a significant increase in sales during the first quarter of 1999. Despite the good news, company officials seemed to downplay their performance and repeated the often-stated corporate position that they are more concerned with customer satisfaction than with sales targets.

In an interview with Japan Auto Trends, company officials attributed Saturn's 16 percent increase in sales to the introduction of its new three-door SC Coupe. They said it appealed to Japanese consumers because it's unique. They also attributed their higher sales figures to an increase in the number of Saturn showrooms this past year. But they also pointed out that they weren't concerned with the numbers and would continue focusing on customer satisfaction.

On that point, the company has never wavered.

From the first day that it opened its initial eight showrooms with a shipment of 220 right-hand-drive Saturn sedans, wagons and coupes on April 5, 1997, Saturn has apparently taken Japanese concerns to heart. In addition to being the only American maker to initially offer right-hand-drive models, it also positioned the turn signal lever on the right side of the steering column and moved the pedals 30 millimeters closer to the driver. Instead of marketing itself as "A Different Kind of Car Company"—a Saturn slogan used in the U.S.—the company decided to stress the theme, "Rei wo tsukusu Kaisha, Rei wo tsukusu Kuruma." Although the phrase has many different meanings in English, it always conveys respect, and thus appeals to Japanese sensibilities.

And then last summer, the company became the first automaker in Japan to loan free child safety seats to customers. Since then, Mitsubishi and Toyota have begun providing child seats, but their programs are restricted to the dealer level, while Saturn's is company-wide. The company insists that the Child Safety Program is not a sales promotion, but rather an effort to promote customer satisfaction and to increase parental awareness of child safety.

It may be too soon to say whether Saturn will continue to be a ray of hope for General Motors in Japan, but it's obvious that the company is determined to stay. "My answer then as now, is that we are very serious indeed," said Saturn General Director Keith Wicks in material available on the company's Japanese website. "We're devoting as much time as it takes, working step-by-step to achieve the same unsurpassed level of satisfaction and pleasure. We know that the Japanese market is the most demanding in the world, and we know that we face many strong competitors here. It won't be easy. But we're confident that the Saturn family will grow throughout Japan."


 

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