Lutz says Saab here to stay

General Motors Corp. Director Jerry York has backed away from his earlier recommendation that GM drop its ailing Saab brand, the automaker's Vice Chairman Bob Lutz said Monday at the unveiling of a striking concept coupe by the Swedish carmaker.

"I've spoken at length with Jerry York," said Lutz, referring to the board member who is a key aide to the automaker's third-largest shareholder, Kirk Kerkorian. "And he's off this get-rid-of-Saab thing."

Prior to joining GM's board earlier this month, York had urged GM to shed the Saab brand and consider dropping the Hummer nameplate to stem its huge losses totaling $8.6 billion last year.

"Saab is no longer an independent company that you could sell off as a unit," Lutz said.

He said GM had integrated the Swedish carmaker into its new global vehicle development system, sharply reducing the unit's costs. "It will be profitable soon," he said. "Of course we'll keep it."

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atomicbri - 2/28/2006 1:26:11 PM

+1 Boost

if GM continues to offer vehicles that are mearly Chevys with a Saab badge, they will fail. I will wit and reserve judgement for the next round of Saabs to come out. But as of now, only the 9-3 seems formidable, the 9-5 is getting very old...and the Saabaru and Saablazer are just awful afterthoughts.