GM gives Saab a lease on life just 18 months after abandoning it

Article by Christian Andrei, on June 5, 2011

It’s ironic that General Motors had intended to terminate the Saab brand before deciding to sell it to Spyker Cars NV in February 2010 but now, GM is back to producing Saab's new 9-4X crossover.

For 10 days last May, GM (the former parent of Saab Automobile) was the sole producer of Saab vehicles after Saab’s plant in Trollhaettan, Sweden, had to shut down due to inability to pay suppliers.

Garel Rhys, president of University of Cardiff's automotive industry research center, said that GM is giving Saab “a lifeline” to eventually find a source of funds. He added that what GM is doing now is an indication of what it could still have done for the brand when it was still the owner.

During that period from 2003 to 2008 when Saab was owned by GM, it incurred operating losses of 16.5 billion kronor ($2.65 billion). Since Spyker bought Saab, it had posted losses of about 25 million euros a month before production was closed on March 29.

It’s expected that the 9-4X, the first Saab model to feature sport-utility vehicle proportions with car handling, will significant boost revenue. Saab was able to restart production recently after receiving a short-term loan from shareholder Gemini Investment Fund Ltd. and entering a deal with Chinese car dealer Pangda Automobile Trade Co.

Topics: saab, gm

If you liked the article, share on:

Comments

Login or Create new account to add a comment!

Recommended

Nikola Motor’s hydrogen-powered semi-trailer truck is highly appealing with its many advancements but don’t expect it to arrive in the near future. In November 2016, Toyota announced the possibility of...
by - December 5, 2016
Usually, it is up to resourceful spy photographers to take clear pictures of vehicle prototypes, especially those that have aroused a lot of interest. The same is true for Project...
by - December 5, 2016
The much-anticipated debut of the new Wrangler will surely happen. As it approaches, we’ve gathered all the latest information released so far. Of course, most are expecting that the next...
by - December 5, 2016
Nissan has announced the pricing for its new commercial pickup line. So for those who have been waiting for Nissan’s official price list (plus a little more info), read on… ...
by - December 5, 2016
Sorry folks, the AMG-fied Mercedes-Benz X-Class will remain in the fantasy world. According to some news, the AMG big boss has finally spoken up about why an AMG X-Class is...
by - December 5, 2016
Facebook

Youtube Channel

Tip Us
Do you have a tip for us?
Did you film an important event?
Contact us
Newsletter
Subscribe to our newsletter!
Subscribe
Galleries