Saab’s future remains cloudy after General Motors dismissed reports saying it had not found anyone interested in buying Saab.
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“It’s still early in the process,” one GM official familiar with the proceedings told Agence France-Presse (AFP). “It’s going to take some time.”
GM chairman Richard Wagoner had said in mid-2008 the Swedish brand would remain in the GM family with a new product line for North America after sales of rebadged GMNA and Subaru models failed to meet expectations.
The brand was subsequently placed under ‘strategic review’ as part of GM’s year-end bid for federal bailout loans.
GM vice chairman and ‘product czar’ Bob Lutz recently was quoted as saying ‘strategic review’ is “code for ‘we realize they’re not working and something needs to be done.'”
PricewaterhouseCoopers Detroit consultant Paul McCarthy told AFP merger and acquisition activity in the automotive sector had declined since mid-2008 due to tight credit markets and uncertainty over the ultimate fates of GM and Chrysler.
This week it was reported that the euro-dollar exchange rate means almost all Swedish-built Saabs are sold in the United States at a loss to GM.
The Swedish government has said it will provide credit guarantees and loans to Saab and Swedish compatriot Volvo, which Ford has put on the block.
