GM grapples with Saab, Opel futures
General Motors cast around for fresh options for Sweden’s loss-making Saab on Wednesday after the collapse of its sale added a fresh complication to tortuous European restructuring plans.
Earlier this month the U.S. automaker backtracked on months of talks to sell a majority stake in Opel to a consortium led by Canada’s Magna International, opting to keep and revamp the business itself.
GM was due to present Opel labor leaders with the restructuring plan it hopes will get the struggling unit back on track and acting GM head Nick Reilly said the turmoil unleashed by the failure of the Saab deal would not affect Opel.
The U.S. automaker emerged from bankruptcy in July and is fighting to redefine itself after falling victim to the worldwide auto crisis last year.
Some analysts say the European market in which Opel and Saab operate is burdened with as much as 20 percent too much production capacity.
On Tuesday GM’s deal to sell Saab to niche luxury carmaker Koenigsegg, backed by China’s BAIC, collapsed after the buyer walked away.
SAAB’S UNCERTAIN FUTURE
Trolhattan, Sweden-based Saab, which has not made a profit since 2001, was facing uncertainty on Wednesday. Joran Hagglund, state secretary at Sweden’s Industry Ministry, said GM appeared to still harbor hope of being able to sell Saab.
The Swedish government had effectively ruled out a state bailout of the 60-year-old auto brand, saying on Tuesday that a private buyer was the only option for Saab no fax payday advance.
GM’s board has a regular monthly meeting scheduled next week, and the question of what to do with Saab will now lead the agenda, a person with direct knowledge of the situation said on Tuesday.
No other bidders have so far emerged for the brand, meaning GM’s only options would be to restart the sale process or to wind down the business, the more likely option, the person said.
BAIC, which had been part of the Koenigsegg-led consortium negotiating for Saab, said it was studying its options and reiterated its commitment to become more international. Analysts said it was unlikely to bid for the whole of Saab alone, but might buy some of the assets.
OPEL REVAMP PLAN
Reilly had said earlier this week that the group would cut between 9,000 and 9,500 jobs out of the 50,000 strong workforce at Opel and British sister brand Vauxhall as part of the 3.3 billion euro ($4.92 billion) plan.
Opel denied media reports on Wednesday that it planned to cut 5,300 jobs at German sites, saying the figure was far too high.
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