Filed under: Euro, GM, Saab, Earnings/Financials
In the interest of making its Saab brand more attractive for purchase, General Motors is reportedly looking at returning more autonomy to its Swedish subsidiary. As it stands now, Saab is basically a glorified Swedish imprint of the Opel record label. Indeed, a lot of engineering, and even construction, for Saab cars goes on in Russelsheim, Germany, Opel's home.
The biggest development is that Saab would gain control over its own finances and decisions. Although GM would still be Saab's owner, the Swedish Patient would have its own budget (a figure that has yet to be determined). The idea behind the move is that giving Saab additional financial autonomy would demonstrate to potential buyers that the division is capable of standing on its own.
If Saab is sold, it will obviously take some time to separate itself from GM platforms, but increasingly independent decision-making could help speed up the process. Saab board members and the president of Sweden's IF Metall trade union feel that a standalone Saab can work and be more enticing for potential suitors. The final verdict will be revealed when GM submits its business plan to the US Government on February 17th