Glimmer of hope for Saab - but GM to decide (Roundup)

Dec 21, 2009, 16:48 GMT

Stockholm - A glimmer of hope was raised Monday that ailing Swedish carmaker Saab might avoid closure, following a new offer to its owner General Motors.

The latest offer announced over the weekend was a 'slim chance,' Enterprise Minister Maud Olofsson said after a meeting with unions and local politicians from Trollhattan, south-western Sweden, where Saab's main plant is located.

'The situation is very difficult,' she added.

The government said it had allocated 75 million dollars for retraining and innovation projects to help regions like Trollhattan facing job losses.

Saab has some 3,400 employees in Sweden. An additional 3,000 positions with subcontractors are at stake, according to the Automotive Supplier Industry.

Olofsson said GM was responsible for answering queries about the possible new offers.

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 Cars.

Earlier, union leaders issued an open letter urging GM's board to consider an 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.

GM's interest in Saab - one of Europe's smallest carmakers - dates back to the early 1990s. The company took full control in 2000.