Saab Future Debated

General Motors is close to deciding what to do with Saab, its perennially loss-making Swedish subsidiary.

Bob Lutz, GM Vice President and so-called "product czar" of GM has said in an interview, "We like the brand and we want to retain it [but] you cannot make a business case under 200,000 to 250,000 annual volume - that is almost impossible," Saab production is now around 120,000 cars per year.

It seems likely that Saab will no longer design unique models. Instead, it will have to take GM models and modify them to inject some Swedish character. The Saab factory, if it is to survive, may become a GM assembly plant making both Saabs and other GM brands. Already, a small Cadillac, called BLS, is planned to go into production at the Saab factory.