No sale: GM to close Saab

General Motors has not found a buyer for Saab Automobile AB, as planned in part of the streamlining of the major automaker, and it has announced that it will close the division. The situation became dire when suitor Koenigsegg Group walked away from purchasing Saab, despite loan guarantees from the Swedish government. Another specialty car automaker Spyker stepped up to pursue purchase, though according to GM officials, both parties felt there were issues that could not be resolved.
 
Extensive efforts had been made to find a buyer, said GM, though after due diligence, none had been found. The decision was made early today in Stockholm.
 
"Despite the best efforts of all involved, it has become very clear that the due diligence required to complete this complex transaction could not be executed in a reasonable time. In order to maintain operations, Saab needed a quick resolution," said GM Europe President Nick Reilly. "We regret that we were not able to complete this transaction with Spyker Cars. We will work closely with the Saab organization to wind down the business in an orderly and responsible manner. This is not a bankruptcy or forced liquidation process. Consequently, we expect Saab to satisfy debts including supplier payments, and to wind down production and the distribution channel in an orderly manner while looking after our customers."

Saab will continue to honor warranties, while providing service and spare parts to current Saab owners around the world.

Saab had developed a new 9-5 car. GM has said that it does not have immediate plans for selling the car, either itself or to another company, though the automaker will consider opportunities. Clearly, with today's briefing, GM has decided to move on with winding down the Saab brand, though there are many details to work out.

The wind down is said to proceed as quickly as possible, and fairly as possible, said GM.

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