Could Saab go up for sale?
Saab could be among a number of brands that are axed by General Motors as part of a cost-cutting plan, it has been reported. Although GM would look to sell companies like Saab, other well-established names such as Saturn and Pontiac could disappear altogether.
Hummer is also a badge in the firing line and GM could also look at dropping it in a bid to stay afloat. Selling or dropping brands would undoubtedly save cash as well as reducing overlap in GM’s range. The extreme measures are part of an effort by GM not to run out of operating cash by the year’s end, Bloomberg reports.
Even the suggestion of shuttering the 82-year Pontiac division, one of GM’s oldest, shows how serious GM is about presenting a viable survival plan to Congress on December 2. The report must show that GM can repay federal aid and the company must be seen to be cutting debt levels and reducing costs.
Chief Executive Officer Rick Wagoner has been given a strict deadline by House Speaker Nancy Pelosi and Senate Majority Leader Harry Reid. On December 5 congress has scheduled a hearing on a $25billion bailout plan for the US auto industry and may vote as early as the week of December 8.
GM made its initial investment in Sweden’s Saab in 1990 and took full control in 2000. Despite record sales in 2003 they were understood to be down 31% through October this year.