GM can't find buyer for Saab

New Saab 9-3 SportCombi

Cash-strapped Detroit automaker denies having trouble finding buyer, says its still early

By Alex Ricciuti
January 9, 2009 7:10 PM
Filed Under: American, Corporate/Financial, General Motors, Saab

GM is having trouble finding a buyer for its Saab division and may be looking for help from the Swedish government which has promised relief for its domestic auto industry.

According to Automotive News, sources have said GM is looking for a buyer for Saab to unburden itself of the loss-making brand, although, the automaker has not announced it officially and denies claims that it is having trouble finding a buyer. According to CNN, GM says it is still too early in the process to say they cannot find an investor to purchase their Swedish brand.

Last month, the Swedish government said it would make available 25 billion kronor (or 3.19 billion US dollars) in the form of either loans or credit guarantees to its troubled domestic automakers Saab and Volvo. Saab is still considering whether to apply for any funding. The Swedish government has rejected plans for a government takeover of either domestic brand.

GM bought half of Saab in 1989 and then purchased full ownership in 1999. The brand has never made a profit for GM and the Detroit automaker loses money on each Saab model sold in the US due to the poor euro-to-US dollar exchange rate.

 

Source: Automotive News

Comments

Motor_Yakuza
January 9, 2009 7:20 PM
So, GM will have to keep it and revitalize it?

Bristol411S3
January 9, 2009 7:53 PM
They can't afford to and also clearly don't know how to. The option is shutting it down.

Motor_Yakuza
January 9, 2009 8:24 PM
I think they can do some bodies and interiors, and put it on GM common platforms, and didn't SAAB got some bailout from the gov. of Sweden? That should give them some cash to bring SAAB back online.It's sad to see a brand die.

alessandro
January 9, 2009 8:53 PM
They already revitalized it -in their way. So that, here we are. it is like driving a car: Where ever you will drive there you finally will be, in general.

motorsport13
January 9, 2009 8:22 PM
i feel bad for saab the 9-3 was such a good car.

tsiebrand
January 9, 2009 9:34 PM
I would love to see Volkswagen buying Saab! They already have Scania which was part of Saab before. It would be sad to see Saab die, they have great cars!

James2911
January 10, 2009 5:54 AM
Porsche should buy them and give them some handling know how - they're rolling in cash despite the recession.

sensei
January 11, 2009 12:18 AM
GM, naturally never understood SAAB and couldn't make them a BMW competitor. GM doesn't innovate. They simply buy into smaller companies and "steal" their innovation and this didn't work for SAAB.

SAAB, if it is to survive, must be between Subaru and BMW with it being an acceptable BMW competitor as all SAABs should offer AWD. There is no other way to carry the marque at the prices GM currently asks for new SAABs.

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