GM May Sell Saab for $1

Amid rumors that Swedish car maker Saab could be sold for a nominal $1, Swedish businessman Lars Carlstrom told Dow Jones Newswires Wednesday that his consortium will submit a revised offer for the company.

For the bid to be successful, Carlstrom's consortium, which includes Luxembourg-based investment firm Genii Capital and Formula One motor racing entrepreneur Bernie Ecclestone, will have to convince Saab's parent company General Motors (GM) that it has a sustainable long-term business plan for the brand.

"We will submit a clarification, regarding liquidity, cash, and other things," Carlstrom said Wednesday, adding "we're working on it."

Dutch luxury car maker Spyker Cars is also bidding for Saab.

"We are trying to reach agreement with GM on several outstanding issues," Spyker Chief Executive Victor Muller told Dow Jones Newswires Tuesday, adding he expects a final answer from GM by the end of this week.

Meanwhile Nick Reilly, GM Europe President, said Tuesday that although the American car maker had begun the process of winding down Saab, it was still talking to "at least a couple of potential buyers," including Bernie Ecclestone, the Formula One boss.

Speaking at the North American International Auto Show in Detroit, Reilly said GM were looking at "what they can make out of (Carlstrom's bid) ... They are not going to do anything unless they think they can make money."

If GM decided to wind down Saab, it would cost between $72.5 million and nd $145 million.

Reilly said if no buyer for Saab could be found, all the technology for its new 9.5 model, which was ready for production before GM decided to sell the brand as part of its restructuring, could be scrapped.

- Dow Jones Newswires and The Times of London contributed to this report.