GM chief says may build Saabs in U.S

FRANKFURT, Sept 15, 2003; Reuters reported that General Motors Corp may start building Saab cars for the American market in the United States to ease the effect of exchange rate movements, GM Chief Executive Rick Wagoner was quoted as saying in a newspaper report on Monday.

"Saab is a small manufacturer which is very dependent on the U.S. market. It has a lot of revenues in dollars, but no costs in the currency," Wagoner told the Handelsblatt daily newspaper.

He said Sweden's Saab, which along with Opel and Vauxhall form General Motors Europe's stable of brands, needed to sell more models in the United States, the world's biggest car market.

"That could mean building additional models over there (in the United States) that are specifically for the American market," he said.

The strength of the Swedish crown has hurt Saab's profits in the past as the company has to translate its U.S. sales from dollars back into crowns.

Sweden's voters rejected joining the European Union's single currency in a referendum on Sunday.

Wagoner also repeated comments made at the Frankfurt auto show last week that buyer incentives such as cash rebates and financing deals had reached a peak in the United States, but he was less optimistic about Europe.

"In Europe, it is different. High rebates on new cars have not so far been common here. That will change," he said.