GM kills Saab

It was just a mater of time! After Koenigsegg aborted its intentions of buying Saab last month, today GM announced that "the intended sale of Saab Automobile AB would not be concluded." GM had been in discussions with Spyker Cars, but it seems it was impossible for the two parts to find an agreement.

"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."

As a result GM will start an orderly wind-down of Saab operations.

Press release after the jump.

Press release

General Motors announced today that the intended sale of Saab Automobile AB would not be concluded. After the withdrawal of Koenigsegg Koenigsegg Group AB last month, GM had been in discussions with Spyker Spyker Cars about its interest in acquiring Saab. During the due diligence, certain issues arose that both parties believe could not be resolved. As a result, GM will start an orderly wind-down of Saab operations.

“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 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.

As part of its efforts to become a leaner organization, GM began seeking a buyer for Saab’s operations in January. Last week, Saab Automobile AB announced that it had closed on the sale of certain Saab 9-3 Saab 9-3 , current 9-5 and powertrain technology and tooling to Beijing Automotive Industry Holdings Co. Ltd. (BAIC). GM expects today’s announcement to have no impact on the earlier sale.

As the company continues to reinvent itself, GM has been faced with some very difficult but necessary business decisions. The focus will remain on the four core brands – Buick, Cadillac Cadillac , Chevrolet Chevrolet and GMC GMC – and several regional brands, including Opel Opel / Vauxhall Vauxhall in Europe. This will enable the company to devote more engineering and marketing resources to each brand and model.


5 comments:

For a Saab model, this is a real great looking machine. I actually expecting this kind of model and design to other branded names car, but Saab really impress me this time.

I don’t expect this to happen, I think GM don’t have that trust to Spyker motors where I recently commented about the negative issues of that bidder. Also thinking if Koenigsegg will be the winner of this bid, maybe there’s a possibility to deal up Saab on them.

GM killed Saab the second they took control of the company.

cool I wish we also have that kind of garage in our house.

oh well at least the 9-3 and 9-5 will live on as a BAIC model...i guess it’ll be call BAIC 9-3 and 9-5

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