Opel Advises GM to Sell Saab

General Motors should try to find a buyer for its Swedish brand Saab, Opel's head of the works council,Klaus Franz, said today, pointing that Saab has the potential to revamp sales by itself using government aid. Last week, Sweden's government agreed to provide a 25 billion crowns loan to local manufacturers Volvo and Saab, as the two companies are currently experiencing very poor sales on most emerging markets. However, Swedish officials claimed that the state has absolutely no intention in purchasing Volvo or Saab shares, so a new investor would be welcomed, Opel's representative explained.

According to Wheels24, Klaus Franz explained that investment in approximately three models in Volvo's and Saab's lineup should be enough to help the two survive on the automotive industry.

"I am glad that the Swedish government has granted support for Volvo and Saab. On that basis, Ford and GM could find new investors for their Swedish brands. I do not see any perspective for Saab under GM. Investments in at least three products would be needed for the brand to survive,” Klaus Franz told German publication auto motor und sport according to the aforementioned source.

Similar to American carmakers, Swedish companies started experiencing financial problems due to the global economic crisis which is continuously lowering sales in every country around the world. Volvo and Saab are no exception to the rule and, according to recent reports, government aid is urgently needed for both companies.

Volvo for instance, already announced a couple of cost-cutting measures, such as lowered production and employees layoffs, after recording the lowest sales since 1996. 2008 brought extremely poor sales for both Swedish companies, with Volvo truck sales down 99.7 percent in the third quarter of 2007, which means only 115 trucks were delivered in this period.