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

A few months ago, Mercedes-Benz promised that they will be treating everyone to a “big surprise” during the Monterey Car Week. And true enough, many of us were stunned as...
by - August 19, 2017
McLaren has already shown some interest in electrifying their models. And initially, we thought that they will just use hybrid systems to use across their current lineup. Nevertheless, we have...
by - August 19, 2017
Fifty years after its glorious victory at the 24 Hours of Le Mans, Ford launches the 2018 Ford GT ’67 Heritage Edition at the 2017 Monterey Car Week. The red...
by - August 18, 2017
Hyundai has recently unveiled an unnamed pre-production model of its new fuel cell SUV. We don’t know what to call this model just yet, but sources say that this model...
by - August 18, 2017
This weekend at the 2017 Pebble Beach Concours d’Elegance, the BMW Z4 Concept will make its first public appearance. The good news is that we will finally have a real...
by - August 18, 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