Saab Automobile AB was a producer of automobiles that was founded in Sweden in 1945 when its parent company, SAAB AB, began a project to design a small automobile. The first production model, the Saab 92, was launched in 1949. In 1968 the parent company merged with Scania-Vabis, and ten years later the Saab 900 was launched, in time becoming Saab's best-selling model. In the mid-1980s the new Saab 9000 model also appeared. In 1989, the automobile division of Saab-Scania was restructured into an independent company, Saab Automobile AB. The American manufacturer General Motors (GM) took 50 percent ownership with an investment of US$600 million. Two well-known models to come out of this period were the Saab 9-3 and the Saab 9-5.
An automobile design project was started in 1945 with the internal name "X9248". The design project became formally known as "Project 92"; the 92 being next in production sequence after the Saab 91, a single engine trainer aircraft. In 1948, a company site in Trollhättan was converted to allow automobile assembly and the project moved there, along with the car manufacturing headquarters, which has remained there since. The company made four prototypes named "Ursaab" or "original Saab", numbered 92001 through to 92004, before designing the production model, the Saab 92, in 1949. The Saab 92 went into production in December 1949, selling 20,000 cars through the mid-1950s. The 92 was thoroughly redesigned and re-engineered in 1955, and was renamed the "Saab 93". The car's engine gained a cylinder, going from two to three and its front fascia became the first to sport the first incarnation of Saab's trademark trapezoidal radiator grill.
In 1969, Saab AB merged with the Swedish commercial vehicle manufacturer Scania-Vabis AB to form Saab-Scania AB, under the Wallenberg family umbrella. The 99 range was expanded in 1973 with the addition of a combi coupe model, a body style which became synonymous with Saab. The millionth Saab was produced in 1976. Saab entered into an agreement with Fiat in 1978 to sell a rebadged Lancia Delta as the Saab 600 and jointly develop a new platform. The agreement yielded 1985's Saab 9000, sister to the Alfa Romeo 164, Fiat Croma and Lancia Thema; all rode atop a common Type Four chassis. The 9000 was Saab's first proper luxury car but failed to achieve the planned sales volume. 1978 also was the first year for the 99's replacement: the Saab 900. Nearly one million 900s would be produced, making it Saab's best-selling and most iconic model.
GM exercised its option to acquire the remaining Saab shares in 2000, spending US$125 million to turn the company into a wholly owned subsidiary. The new close relationship yielded its first product in 2003's all-new 9-3. The new model, marketed as a sport sedan, dropped Saab's iconic hatchback in favour of a more conventional four-door approach. The model shared a co-developed platform and some other components with the Opel Vectra again, but the relationship was much more of a joint engineering effort than before. Under GM's direction, the badge-engineered Saab 9-2X and Saab 9-7X were introduced in the American market in 2005 with the hope of increasing sales. Both models were a critical and commercial failure and were cancelled a few years after production began.