Saab managing director Jan-Ake Jonsson has confirmed that Saab is to build a compact small family car to rival the Audi A3 and BMW 1-Series.
Talking to Swedish paper TT, he also said that this will be built at Saab's factory in Trollhatten, thus securing the future of the plant.
The car, said to be called the 9-1, will replace the Subaru Impreza-based 9-2X in the US, but is also intended for worldwide sale. As long-rumoured, it will share its platform with the next-generation Opel/Vauxhall Astra (as well as the next Saturn Ion for the US).
It is scheduled for sale in early 2009; styling studies are said to be under development.
