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Saab's Future To Be Decided In Coming Week Photo:
 
 
Mike Stevens | Nov, 27 2009 | 7 Comments

THE FUTURE LOOKS bleak for Swedish carmaker Saab after Koenigsegg and its Chinese partner BAIC pulled out of negotiations with GM earlier this week.

With a $500 million loss in 2008 and a similar amount expected to be lost this year, Saab will be the major topic at a regular meeting next Tuesday for parent company GM's top brass.

For now, the most likely outcome for Saab is closure.

With no other strong bidders in the running, according to a Reuters source, GM would need to continue funding Saab while it searches for a new buyer - a process which could extend well into next year.

While GM recently decided to keep fellow European brand Opel, it is not likely to make the same decision with Saab.

General Motors boss Fritz Henderson described Opel recently as "too important" to the carmaker's global strategy - the same cannot be said for Saab.

In September, GM announced it would close down its Saturn brand and dealerships after US company Penske Automotive pulled out of a deal to buy the brand.

The Swedish Government is unlikely to takeover the ailing carmaker. Although it is willing to provide up to 25 billion crowns in guarantees and emergency loans, Sweden has consistently said it will not take a stake in either of the country's carmakers (the other being Volvo).

 
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