3,400 Saab workers to lose jobs

• Source: Global Times
• [13:43 January 07 2010]
• Comments

General Motors is proceeding with the closure of Saab since none of the potential bidders for the Swedish brand have come forward with the financing needed to restructure the money-losing automaker.

GM's Chief Executive Ed Whitacre made the announcement Wednesday at the company's headquarters in Detroit.

GM will start closing down Saab plants later this week, said Whitacre. To close the 60-year-old automaker would eliminate 3,400 jobs in Sweden and impact 1,100 Saab dealers globally.

In addition, GM has dropped Pontiac and Saturn and is selling Hummer as it restructures to return to profitability after emerging from its US government-funded bankruptcy in July.

Whitacre said the company aims to close the deal to sell Hummer SUV brand to China's Tengzhong Heavy Industrial Machinery by the end of January.

The head of GM expects the company will return to profitability this year.

Agencies and Shi Jierui contributed to this story