Saab to Move US HQ From Detroit

Detroit isn't quite a top-notch location during economic recession, especially when thinking that most major automakers based in the region went bankrupt and begged for government money. Obviously, this cannot be considered the best reason to move out of Detroit but Swedish carmaker Saab, who's US offices are located in this area, might establish its new headquarters in Royal Oak.

Citing a letter sent by Saab COO Mike Colleran to the city of Royal Oak, Autonews today wrote that the location would host Saab's sales and marketing functions that are currently based in GM's Renaissance Center world headquarters in downtown Detroit.

“The Saab (U.S.) national sales operations will be moving out of the RenCen,” said Colleran.

Saab, which is now owned by Koenigsegg Automotive AB, will invest $2.2 million in the next five years for the transfer to become reality, the aforementioned source informed.

Saab is also reviewing several Chinese opportunities as the company wants to move a part of its production in China, using the agreement with Beijing Automotive (BAIC). The Swedish manufacturer also intends to double the number of Chinese dealerships from 15 to 30.

"Beijing Automotive is an opportunity for us to establish ourselves in the Chinese market with their experience," Saab CEO Jan-Ake Jonsson said at the Frankfurt Auto Show.

Saab is one of the brands that got sold by General Motors after the US-based former bankrupt carmaker went bankrupt and decided to discontinue non-core brands. Koenigsegg will help Saab launch new products which are currently in the final stages of development and are supposed to help the Swedish ailing brand get back in business.

As part of the deal, General Motors will also provide Saab with engines and other parts for a defined period of time, the American manufacturer said, with the Swedish manufacturer to produce the next-generation 9-5 version in its local facility in Trollhättan, Sweden.