Rumors Swirl on GM-Saab Decision

General Motors is declining to confirm newspaper reports that the world’s biggest carmaker has chosen its German unit Opel over Swedish subsidiary SAAB to make its next-generation mid-size cars.   

A Frankfurter daily is reporting that the decision will guarantee the future of Opel’s main German site near Frankfurt at least through 2010.  The German plant was competing with the Swedish site to build GM’s new mid-sized cars in Europe and the newspaper reports that all research and development activities will also be based at the German site.  The Swedish plant is secure in the mid-term, since it will build the Cadillac BLS model until 2007. 

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