Ramifications - GM flogs SAAB, SAAB ditches Aussie-built engines #economics

Everything is connected in this globalised world. The cash-strapped and sinking fast General Motors Corp. has been knocked back by the Swedish government, so far, and is looking for financial support elsewhere - probably by flogging SAAB to the highest bidder. Now that's all very sad for SAAB but it appears likely that for various reasons, including fuel efficiency and the understandable urge to downsize, SAAB has ditched the GM-sourced and Aussie-built V6 engine (that also sits inside most Holden Commodores). There's a big dent in the Aussie engine export program (maybe they should have stuck with exporting 4-cylinder motors after all?).

This follows FIAT-owned Alfa Romeo, another Holden engine customer and former GM-playmate, recently ditching - or at least down-playing - the same V6 (well, the block, anyway - they use their own head) in favour of a new, high-tech and hyper-efficient 4-cylinder. FIAT and Alfa are planning to introduce what looks uncannily like an electro-hydraulic version of a desmodromic valvetrain that will get at least 2-litre performance out of 1.4 litre petrol engines without the extra weight and complexity of a hybrid powertrain.

Holden's had better get working on those 4-cyclinder motors, the sands are shifting fast.