Glimmer of hope for Saab

Dec 21, 2009, 14:30 GMT

Stockholm - A glimmer of hope was raised Monday that the ailing motor company Saab owned by General Motors might get a last- minute reprieve.

GM on Friday said it had not found a buyer for the loss-making Saab and aimed to wind the Swedish carmaker down after unsuccessful talks with Dutch-based niche sports car group Spyker.

Spyker made a renewed offer over the weekend that re-kindled hopes although a cabinet member said chances were very slim.

'GM has to decide on the adjusted offer,' Enterprise Minister Maud Olofsson told Swedish radio news.

Olofsson's remarks were made before she and employment minister Sven Otto Littorin met in Stockholm with union representatives and local politicians from Trollhattan, south-western Sweden where Saab's main plant is located.

Saab has some 3,400 employees in Sweden.

Earlier, union leaders issued an open letter urging GM's board to consider the adjusted offer from Spyker.

Stefan Lofven, national head of the IF Metall union that comprises the Swedish Industrial Workers' and the Swedish Metal Workers' Union, said it was necessary for GM to make a 'quick review' of the new offer.

Lofven said he understood that Saab employees and others impacted by a wind down of Saab's operations needed a swift decision to end the uncertainty about the carmaker.

A consortium structured around a low-volume Swedish sports carmaker in November pulled out of talks about a possible acquisition of Saab.

GM gave Saab a month-long reprieve and began talks with Spyker until the decision last week to shut down the Swedish group.