General Motors insists its plans to bring Saab and Cadillac together in Europe to attack Ford's Premier Automotive Group have not been cancelled, but postponed.

The original programme to combine Saab and Cadillac distribution in Europe, including the appointment of joint-brand dealers, was announced on the eve of the September 11 terrorist attacks in the US.

Understandably, GM had to reorganise its investments after the attacks, and the Saab/Cadillac plan became less of a priority.

Mike Burns, president of GM Europe, said the process of bringing Saab and Cadillac together would still go ahead, even if current market conditions meant it had to be put back.

'It will take a lot of money to do it right. It's not that we don't want to do it now, but it's not the right time to be spending resources on such a scheme.'

He added that Saab would continue to be GM's biggest selling premium brand in Europe for a long time to come, although there are definite plans to bring the Cadillac CTS to Europe.