LeftLaneNews

GM's Saab improved losses in 2007

Although the sale of Ford's Volvo brand has been rumored for several months, General Motors' Swedish luxury brand, Saab, has by and large escaped any sale rumors. The latest news from Sweden will probably solidify Saab in the GM fold as the brand managed to reduce its losses in 2007.

According to Sweden's Dagens Industri, Saab lost 2.2 billion kronor (roughly $366 million U.S.) in 2007, compared to 2.9 billion kronor in 2006.

Despite the reduction is losses, Saab actually sold fewer cars in 2007 - 125,000 units in 2007 compared to about 132,800 in 2006. Saab CEO Jan-Ake Jonsson attributed the reduced losses to bigger profit margins and cost-cutting measures. "I am satisfied that we managed to improve the result despite a drop in sales," Jonsson told Automotive News.

Jonsson added that Saab actually earned money on its European sales but did not in the U.S.

Saab is hoping to turn a profit by 2009 or 2010, aided by new products such as the 9-3X and next-generation 9-3.