Eric J. Shelton / APSaab automobiles are seen on the lot of Herb Chambers Saab of Boston on Tuesday. Saab Automobile, General Motors Corp.’s struggling Swedish unit known for its family cars, was rescued Tuesday by a consortium led by Koenigsegg Automotive AB, a tiny company that produces only a dozen custom-made super cars a year.
“He’s got a good chance of making it work,” said analyst Joe Phillippi of AutoTrends Consulting Inc. in Short Hills, N.J. “He can make a good return — it’s going to depend on the vehicles he’s selling — but he’s not going to be making the kind of money that you would make as a manufacturer. The flip side is you don’t have all the costs of a manufacturing company.”
General Motors Corp. said it wants to eliminate about 40 percent of its nearly 6,000 dealerships nationwide by the end of next year, a day after Chrysler LLC unveiled plans to close almost 800 new-car outlets.