General Motors will turn its Saab subsidiary into a separate business to make the struggling brand more attractive to potential buyers.
"Saab has been negotiating with GM and the Swedish government about becoming a more independent company, initially as part of GM," a GM source said. Labor sources said the Swedish carmaker would take control of its decision-making and finances. Product development and manufacturing would be done in Sweden, not as part of GM Europe.
GM has failed to find a buyer for Saab, which has been under a GM strategic review that includes possibly selling the brand. GM acquired half of Saab in 1989 and later took 100 percent control.