Jan. 31, 2000: General Motors Corp. acquired the 50% of Saab Automobile AB it didn't already own from Investor AB for a mere $125 million. The Swedish car maker's parent, aerospace company Saab AB, first sold half of its auto unit to GM in 1990 for about $600 million. GM was able to secure the remaining stake at a discount because the car maker was in the red for an entire decade. Of course, GM's complete ownership didn't resolve the money problems, which continued with infrequent quarters in the black. Saab's loses are considered to be one of the many reasons dealmaker Kirk Kerkorian first called for change at GM last year. Perception of GM both in America and Europe may have hurt Saab sales. GM is notorious for rebranding the same car under multiple nameplates, and under complete GM ownership, Saab received the usual GM treatment. First, the 9-3 was redesigned on a shared platform with the down-market Chevrolet Malibu and Opel Vectra mid-size sedans. Then, GM added the ill-fated 92-X compact co-manufactured with Subaru and the 97-X, a thinly veiled Chevy Trailblazer sports utility vehicle. The 92-X was cancelled last year, and the 97-X also is slated to receive the same fate next year when the Trailblazer is dumped leaving Saab with the same line up as when GM bought it. —Matthew Wurtzel
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Mr. Wurtzel - We realize that the acquisition of Saab Automobile by General Motors is not an easy topic to summarize in just a few lines. However, your description of Saab's current product portfolio is not accurate.
First off, the extremely competitive 9-3 line-up now features additional bodystyles like the SportCombi plus award winning powertrains like the 2.8 V6 turbo with 6-speed manuals and manumatics, which Saab did not have access to before it joined the GM family.
Also, beyond other future products, it has been confirmed that Saab is working on an all-new Crossover vehicle. For any clues about how Saab's future will take shape, look no further than the Saab Aero X Concept car - voted "Best in Show" at its world debut in Geneva last year.
Bottom line: it may not be all in showrooms yet, but thanks to the unwavering support of General Motors, the Saab product portfolio is shaping up very well. Stay tuned...