GM review poses threat of closure to Saab

[kysrsoze]

DETROIT - A General Motors review of its Saab subsidiary could lead to the upmarket car brand being axed, if the heavy investment required to revive it is deemed unjustified.

GM executives and people familiar with the study said there was only an outside chance that the Swedish brand would be killed off by the review, due to be completed within three months.

But even a remote threat of the company being closed is likely to prompt a political storm in Sweden, where the automotive industry is one of the most important employers.

(snip)

GM added two new models to the Saab line-up last year in what executives said was a "quick and dirty fix" to improve sales. But Rick Wagoner, GM chairman and chief executive, admitted on Sunday that the new 9-2X small Saab, based on a car from Subaru, GM's Japanese affiliate, had not met sales targets after a botched US launch.




http://www.msnbc.msn.com/id/6811980/