Koenigsegg will not buy Saab after all

Koenigsegg, a tiny Swedish manufacturer of $1-million exotic sports cars, announced today that it would not buy Saab from General Motors after all. Many observers had questioned whether the tiny exotic car maker that sells 18 cars a year with a staff of 45 could absorb an almost mainstream production carmaker more than 2,000 times its size. Now it would appear the answer is no.
 
GM expressed disappointment in the unraveling of the deal, especially after its agreement to sell its Saturn brand to the Penske Automotive dealer group fell through late September.
 
"We're obviously very disappointed with the decision to pull out of the Saab purchase," said GM President and CEO, Fritz Henderson. "Many have worked tirelessly over the past several months to create a sustainable plan for the future of Saab by selling the brand and its manufacturing interests to Koenigsegg Group AB. Given the sudden change in direction, we will take the next several days to assess the situation and will advise on the next steps next week."
  
Saab is one of four former GM divisions the company sloughed off during its bankruptcy last summer. The company hoped to sell Hummer, Saab, and Saturn. Only Pontiac was to be wound down. Now with sales agreements for Saab and Saturn falling apart, GM may have to add those brands to the list of businesses it needs to shutter.
 
Meanwhile, this news may mean the next-generation Saab 9-5 will never see the light of day.
 
GM is expected to further study its options and make additional announcements in the days ahead.
 
— Eric Evarts