General Motors has denied reports that the Premium Architecture venture developing future cars for Saab and Alfa Romeo is in danger of collapsing.

But trusted sources close to the project told AM Saab is pulling out of the project as it had decided to use an existing platform for the 9-5 replacement instead of a new one developed with Alfa Romeo.

The Premium Architecture initiative was set up in 2000 as the first common-vehicle project of the GM/Fiat alliance. Early reports said it would develop cars for Saab, Alfa Romeo, Cadillac and Lancia. Subsequently, Cadillac and Lancia said they would use separate platforms.

Alfa Romeo and Saab continue to develop vehicles at the Gothenburg Premium Architecture Centre, but if Saab does pull out it will threaten the entire venture.