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http://www.autoblog.com/2008/05/10/saab-halts-next-9-3-development-may-radically-downsize-next-gen/
Tougher emissions and fuel economy regulations in Europe and the United States have forced Saab to put the brakes on development of the next-generation 9-3.
More at the link.Saab and parent company General Motors are considering radically downsizing the model to fit GM's upcoming 'Global premium compact' platform - a size rivaling the Audi A3.