Business Abroad: Surging Swedes

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On Target. Virtually excluded from the Common Market countries by high tariffs, both Saab and Volvo concentrate their foreign sales effort in the U.S. Volvo sold 12,787 cars in the U.S. last year at prices ranging from $2,295 for a sedan to $3,995 for a sports model, surged from tenth place among imported cars to fourth.* Saab, which sells mostly in the East at prices ranging from $1,895 to $2,790, moved from 19th to 17th with 4,169 sales—exactly on target with Managing Director Holm's plan to sell from 12% to 15% of his production in the U.S.

Fortnight ago at the gala International Auto Show in Geneva, both companies unveiled the new cars which they expect to put in even more U.S. garages. Volvo showed a stylish new station wagon (less than $3,000) for suburbanites; Saab offered a hot sports model ($3,000) well calculated to capitalize on the U.S. driver's growing fondness for pizazz. So high was public enthusiasm at the Geneva showings that both Saab and Volvo are confidently looking forward to their biggest spring orders ever. Neither new car, however, will go on sale in the U.S. until it has been exhaustively tested on Sweden's tortuous roads. Says Volvo's Engellau: "If we didn't keep up the Swedish reputation for quality, we'd be dead ducks."

* The top three imports: Volkswagen, Renault, Mercedes-Benz.

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