Saab fans tour to support Sweden's dangling brand

MUIDEN, Netherlands (Reuters) - More than 500 Dutch Saab lovers toured on Sunday to support the Swedish car brand, which a fan described as the "Apple of the car industry," while owner General Motors GM.UL was preparing the company's wind down.

Saab owners in several parts of the world have staged events for the loss-making car maker, and fans in the Netherlands, Sweden and about 30 other countries drove in convoys to voice their support, Dutch organizer Sidney Polak said.

"It was a big success, there were many people. Some 585 cars joined the tour," said Polak, who started organizing the Dutch event about three weeks ago.

The future of Saab still hangs in the balance as U.S. owner General Motors nominated two wind-down supervisors on Tuesday but at the same said it was considering several bids for Saab.

Drivers of the car, which is hailed for its design and turbo engine, would not shed a tear if Saab would become independent from GM, which gained full control of the brand in 2000.

"Saab was a brand of its own, it made no concessions. But since GM, that has changed and it made concessions. I hope the old situation will return when it is taken over," said Polak.

Fons Bitter, a 64-year old consultant and owner of a Saab 9-6, also disliked GM's involvement with the company and said people wanted something distinct.

"We have to go back to the roots. Isn't it bizarre that so many people are concerned about this brand?," Bitter said.

His son Sander, a 24-year old marketing and communication student, said Saab's design and image made it different.

"Saab is the Apple of the car industry," referring to U.S. computer and phone maker Apple Inc (AAPL.O), which has been successful with its iPhone and iPod music player.

Saab owners, however, acknowledged the car brand, which has not made a profit since 2001, has failed to be a success.

"GM has tried to make it a mass product but you shouldn't do that. You should cherish its distinct character," said Dutch Rene Lensink, 40, who owns a Saab Cabriolet and is a web designer.

Belgian technical designer Mark Waegeman, 57 and owner of a bright yellow Saab race car model Sonic 3 from 1973, would like to see Swedish parties take over Saab to safeguard the brand's reliability and technology.

"Saab has developed this car which is at the same time a sports car, a family car and freight transporter," said Waegeman, who owns four other Saabs and drove with about 50 other Belgian Saab cars to the event in the Netherlands.

Many families took part in the Dutch convoy, which drove about 75 kilometers (50 miles) from Soesterberg in the center of the Netherlands to Muiden located near Amsterdam.

"I like the sound of the turbo. I miss it in our street, this turbo feeling," said 42-year old Jacqueline Veldhuizen, who joined the convoy with her partner and 8- and 6-year old son and daughter.

Her 25-year old friend Romy Lensink, who made a spinning sound when talking about the turbo, also liked Saabs for their safety.

Source:reuters.com/

Greece's debt crisis dominates talks among EU finance ministers

BRUSSELS, Belgium — Worries over Greece's swelling debt will dominate two days of talks between European Union finance ministers that started Monday, as the euro fell to a ten-day low against the dollar.

Greece is trying to assure financial markets - and other EU governments - that it will reduce debt with a program of deep spending cuts and higher taxes.

It is aiming to bring its massive deficit down to the EU limits intended to underpin the stability of the euro.

EU officials have stressed that Greece has to take action because its problems were also a problem for the entire euro area. Wouter Bos, the Netherlands' finance minister, told reporters before the talks Monday that it was "a good thing that the Greeks realize their responsibility."

Greece's ability to manage its debt crisis is being called into question by markets, who see a higher risk that the government could default or need to seek a bailout - the first in the eurozone - from reluctant richer nations such as Germany.

A Greek default would trigger deeper problems for the currency union, highlighting the failure of allowing each country to manage its own economy. At the very least, a default would also raise borrowing costs for other indebted eurozone governments.

Such speculation has seen the euro tumble to $1.4336 on Monday, the lowest since Jan. 8 - and some relief for exporters who fear that the continued high value of the currency has depressed demand for German cars and machine parts and French luxury goods.

The 16 eurozone finance ministers met Monday to discuss their economy and differences between how each state is faring.

The economic crisis has exacerbated these divergences, with Spain's jobless rate of 19.4 per cent almost five times higher than the Netherlands', at 3.9 per cent. Each country is tackling the crisis in its own way. Some, like France, are borrowing heavily to stoke demand, while others, like debt-laden Ireland, are shunning economic stimulus for debt reduction.

The head of the International Monetary Fund, Dominique Strauss-Kahn, warned Monday that governments should carefully time the end of stimulus programs that are driving economic growth because the global recovery "remains very fragile."

Finance ministers from all 27 EU nations meet for talks Tuesday that will likely criticize Greece in the wake of a report from the EU statistics agency last week that said the country had falsified official economic statistics to make its deficit look smaller in the past.

The new centre-left Greek government has promised reforms to make statistics collection independent of political interference.

However, the EU executive has hinted that it may take legal action because Greece did not fulfil its duty to report quality data to the EU commission. That could lead to a court ruling forcing Greece to make reforms under threat of daily fines.

Source:AFP