Saab boss Peter Augustsson says it is time for him to move on

Chief executive and chairman Peter Augustsson will leave in April to pursue other business interests.

Saab suffered a blow last week when GM chose to locate production of its next generation mid-sized cars at one of its plants in Germany rather than Sweden.

Like all GM's European brands, Saab has suffered from growing losses.

'Moving on'

GM said on Friday that it had decided to centre manufacturing of mid-sized Saab and Opel models at its Ruesselsheim factory, near Frankfurt, rather than its Troellhattan plant in Sweden.

Although the carmaker said the Swedish factory would continue to produce other Saab brands and a new Cadillac model, the decision was seen as a major setback for Saab.

Mr Augustsson will be replaced by Jan-Ake Jonsson, who is to become managing director, while GM's European president Carl-Peter Forster will take over as chairman.

"I felt it was the right time for me to move on to something I have wanted to do for some time," Mr Augustsson said.

Saab has only made an annual profit twice since GM first bought into the business in 1989.

GM is cutting 12,000 jobs in Europe - where it also owns Vauxhall Motors in the UK - in an effort to try and boost profitability.