Daily Auto News Sweden Offers GM No Help with Saab
Daily Auto News
Fans of quirky Swedish cars, brace yourselves. The last, best hope to keep Saab alive may have just disappeared.
The Detroit Free Press reports, “Sweden today rejected General Motors’ plea for government funding for its loss-making Saab unit, saying it was up to the U.S. automaker to save the brand.” In the viability plan submitted to the U.S. government on Tuesday, “GM said Saab could file bankruptcy this month unless the government in Stockholm ponied up cash to help prepare the Swedish-based unit for a sale.”
GM had been negotiating with the Swedish government, asking Stockholm to provide financial support to help prepare Saab to stand on its own as a separate company, or to help GM sell it to a European automaker.
However, Autoblog notes, “Since GM purchased the once quirky automaker, it’s found itself in a constant struggle to actually turn a profit on the investment. The Swedish government doesn’t seem to think it could do any better.”
“Saab’s brand, once renowned for its cutting-edge technology and futuristic designs, has in recent years suffered from an ageing product line and plunging sales,” reports the AFP. In the fourth quarter last year, the company’s sales nosedived 38 percent to just 17,900 cars. For all of 2008, the Swedish automaker sold only 93,300 vehicles down from 120,000 just three years earlier.”
The Swedish decision means that GM is almost certainly left with no alternative but to close the struggling brand.
While the decision is bad news for Saab dealers, uncertainty over the brand’s future may drive down already low prices. Research the best car deals with U.S. News’ car rankings and reviews.
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