The Auto Writer

GM has announced that its Swedish entity, Saab, will be given a five year reprieve. This means that the ailing auto giant will continue to work with Saab during that time to keep its new product pipeline open and share technology beneficial to both companies.

The turn of events signals that GM isn’t ready to consign Saab to the same fate that they are planning for Hummer and Saturn, at least just yet: sell off or shut down the brands.

Saab Lives…For Now

Apparently, GM is satisfied that Saab is well on its way to operating as a separate company as per the February 20, 2009 announcement by the Saab Board that Saab would file for reorganization. The self-managed Swedish court process is designed to create a fully independent business entity that would be sustainable and suitable for investment.

In other words, GM still controls Saab but they are looking for outside investors to shoulder some of that burden.

Three New Products Set To Launch

The news comes at a critical time as Saab is in the midst of a major product line overhaul, one that will yield three all-new models by the end of 2010. Getting ready to launch is the 9-3X which will later be joined by the next generation 9-5 and by a spanking new crossover, the 9-4X.

To ensure Saab customers in the U.S. that the brand will still be around, GM plans to continue covering new vehicles under Saab’s 4 year/50,000 mile bumper-to-bumper limited warranty. In addition, Saab dealerships remain open for sales and service.

More Money For GM

This latest bit of information which is being shared on Automotive News is showing that GM expects to be around for awhile. Despite claims by some that the company’s collapse is imminent, the Obama administration is sending signals that additional funding for GM (and Chrysler) is on its way, although those details haven’t been announced as of yet.

The Saab announcement may help spark sales for the brand which have plunged of late as consumers avoid a brand that they think is ready to die. Indeed, in February 2009 just 712 Saab vehicles were sold in the US, confirming customer sentiments about the brand.

Related Reading: Sweden Spurns Saab, Embraces Volvo