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

Article by Christian A., 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

Recommended

Earlier this week, Nissan revealed a teaser of the new 2018 LEAF’s interior, giving us an idea of what the electric vehicle has to offer. The company released a video...
by - June 25, 2017
The primary suggestion of a 4x4 ute from French company Peugeot was first revealed in 2016. Fifteen months later, the production version is launched. Now, Peugeot is not shying away...
by - June 24, 2017
The new Jaguar E-Pace crossover will soon hold its official launch on July 13 and is expected to arrive at the showrooms by early next year. It couldn’t have come...
by - June 24, 2017
As prices of the original Shelby Cobra have skyrocketed into astronomical proportions, there are firms like Superformance that serve replicas to consumers who demand the same levels of performance at...
by - June 24, 2017
New and improved 2018 Subaru Legacy comes packed with a number of upgraded features from the get go - from the exterior to the interior. And the company has finally...
by - June 23, 2017
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