10th March, 2005

- Trollhättan facility to continue production
- GM to expand Saab model range
- 2006 Cadillac BLS to be built alongside Saab models in Trollhättan

General Motors (GM) announced recently the decision to build selected Opel and Saab models based on a common architecture at its Rüsselsheim plant in Germany, beginning in 2008. Objective, in-depth analysis was conducted over the past several months to determine which of the current two assembly plants (Trollhättan, Sweden and Rüsselsheim, Germany) presented the best overall business case for GM’s future production needs in Europe.

"Both plants presented compelling business cases but, in the end, the scale for this particular allocation tipped in favour of Rüsselsheim", said Fritz Henderson, chairman of General Motors Europe.

At the same time, GM confirmed its commitment to the Saab brand and the Trollhättan production facility. A major initiative is expected for the expansion of the Saab model line-up. In addition, GM will build the all-new Cadillac BLS, which made its world premiere as a show car at the 2005 Geneva Motor Show, in Trollhättan beginning 2006. Furthermore, the company today committed to build selected Saab vehicles in Trollhättan through 2010.

"We are committed to the Saab brand and a competitive operation in Sweden," said Carl-Peter Forster, president of General Motors Europe.  "The 9-3 and 9-5 will continue to be core products for the Saab brand, and will be renewed, but we will add a premium cross-over vehicle in the near future to complement this lineup. Furthermore, we will make every attempt to allocate additional future products to this facility."

The decision to build Opel and Saab models in Rüsselsheim was based upon extensive analysis of numerous factors including capacity requirements, investment, labour costs, plant efficiency and flexibility, working-hour models, logistics and currency issues, to name but a few. The study revealed that the best business case for this product allocation is the Rüsselsheim plant, which will be able to substantially improve its productivity.

"Both facilities put their best foot forward. The business case over time for the Rüsselsheim facility was approximately Euro 200 million more cost effective than that of the Trollhättan facility," said Henderson.

The capabilities demonstrated at GM's Trollhättan plant and its available capacity made it a natural choice for production of the Cadillac BLS. The Cadillac BLS rounds out the American luxury brand's range with a high-performance, front-wheel drive vehicle tailored to European needs. It is one of around 45 new models and variants that GM will introduce in Europe over the coming five years.

Cadillac BLS show car