Saab Readies Models to Cement Future

New General Motors Corp. management board member Jerry York and shareholder Kirk Kerkorian say GM should jettison its under-performing Saab Automobile unit.

Saab has other ideas.

Jan-Ake Jonsson, Saab managing director, says at the press launch for the revised-for-'06 9-5 flagship that Saab is readying a new generation of vehicles it believes will assure its future in the world market.

Jonsson says despite the recent Kerkorian-fueled flare-up in speculation about Saab's viability, the Swedish company and GM “agreed” late last year on a 5-year business plan for Saab “that includes significant investment” in Saab.

That investment includes development of a passenger-car-like cross/utility vehicle, a potential new model line below the 9-3 and all-new 9-5 flagship in 2008 that puts the current model to rest after more than 10 years in the market.

Jonsson tells Ward's Saab also is working to craft a more consistent image for the brand, after years of mixed messages.

Saab sold about 120,000 units worldwide last year, including a record 81,401 in Europe and 38,343 in the U.S., the brand's largest single market.

The auto maker plans to reach 40,000 sales in the U.S. this year, a 5% hike in what analysts expect to be a flat market.