On Tuesday the Financial Times newspaper quoted Swedish government sources as saying that they had had contacts with Fiat representatives' a fortnight before and that the ailing Swedish carmaker could be included in the proposed merger talks talking place between Fiat and GM that would see Fiat Group spinning off its auto manufacturing division and merging it with GM Europe's Opel/Vauxhall unit as well as Fiat's stake in Chrysler. We [are] not aware of Fiat [showing interest]," a Saab spokesman told the AFP news agency. "Of course we know that there have been discussions in Germany but not specifically on Saab."

With GM saying recently that it will provide no further funds and cut the Saab brand loose by the end of this year, the Swedish carmaker is now engaged in a bankruptcy reorganisation procedure. The work of piloting the new Saab Automobile into the future is being led by a group of three people: lawyer Guy Lofalk, whom the District Court has appointed as Administrator, Saab's Managing Director Jan Åke Jonsson, and the international reorganization expert Stephen Taylor.

The administration period began on February 23 and was extended further last month. The purpose of the company reorganisation is to create a short-term stability that will make it possible to develop a long-term solution for Saab. The Swedish Company Reorganization Act says that an application shall not be approved unless there is reasonable cause to assume that the purpose of the reorganisation and the District Court was clear in its view that it found that such conditions do exist. "I can already say that I am impressed by the competence within Saab," says Lofalk, "and with three strong automobile models just around the corner it would be a waste not to try to find a long-term way forward."

Yesterday Saab Managing Director Jan-Åke Jonsson told a Swedish newspaper that the carmaker wasn't in contact with Fiat and that the Italian firm wasn't one of the ten seriously interested parties that Saab claims it is presently in talks with. A Saab spokesman reconfirmed Jonsson's comments. "We now have 10 very serious interested parties which have visited us in Trollhättan," Erik Geers, the Saab spokesman, told the Reuters news agency. "What will happen now [is] we will narrow these down, and we are counting on a close [a deal] in June, or the beginning of summer." However he welcomed any interest that Fiat might show, adding: "We are open for discussions. If Fiat comes into the picture, we would welcome a dialogue."