Newspaper article THE JOURNAL RECORD

GM Buys Remaining Share of Saab

Newspaper article THE JOURNAL RECORD

GM Buys Remaining Share of Saab

Article excerpt

DETROIT (AP) -- General Motors continued its international shopping spree Monday, picking up the 50 percent of Swedish luxury automaker Saab Automobile that it does not already own.

The deal, terms of which were not disclosed, was the latest GM has made with foreign automakers as it shores up positions in overseas markets.

Last year, GM bought 20 percent of Subaru, agreed to buy engines from Honda and began negotiations to buy struggling Korean automaker Daewoo.

GM bought a 50 percent stake and management control of Saab in December 1989 for $600 million and a $100 million investment in Saab's operations. Since then, Saab has lost money every year except 1994 and 1995, though it's on target to break even in 1999.

GM's option to buy the remainder of the company would have expired at the end of the month.

Saab and GM have been sharing engineering and vehicle parts over the past several years, and Saab is part of GM's exhibit at the North American International Auto Show. …

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