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.
Motor_Yakuza
January 9, 2009 7:20 PM
