Monday January 10, 8:54 am Eastern Time
General Motors to take sole ownership of Saab
DETROIT, Jan 10 (Reuters) - General Motors Corp. (NYSE:GM - news) said on Monday it intends to exercise the option to buy the remaining 50 percent of Saab Automobile AB from Investor AB, the Swedish industrial holding company, with which the GM group has shared ownership for the last decade.
GM, the world's largest auto maker, said it will take full ownership of Saab by the end of January. Terms of the deal were not disclosed.
``Over our 10 years with Saab we've seen increasing market success and expansion of the Saab brand internationally,' said GM President and Chief Operating Officer G. Richard Wagoner, Jr.
``This logical next step of exercising our option to take full ownership will be to move ahead even faster in developing new innovative Saab products, contributing even more to a globally diverse portfolio of resources, expertise and products,' he said in a statement.
Saab Automobile AB became a 50-50 joint venture on March 15, 1990, with the GM group holding half of the shares, and Saab-Scania AB owning the other half. Saab-Scania was acquired in 1991 by Investor AB.
In 1999, Saab produced almost 128,000 cars. Swedish production facilities are located in Trollhattan (Saab's headquarters) for the 9-3 and 9-5 models, Sodertalje (engines) and Gothenburg (transmissions). In addition, the 9-3 Convertible is assembled at Valmet Automotive in Uusikaupunki, Finland. Saab employs almost 10,000 people worldwide.
Saab cars are sold in 50 markets around the world. The major markets for Saab are the United States, the United Kingdom, Sweden and Germany. |
