GM to Discontinue Saab As Deal Collapses

(AP)  General Motors Co. said Friday it will wind down Saab after talks to sell the brand to Dutch carmaker Spyker Cars collapsed.

GM said in a news release that issues arose during the sale talks that could not be resolved.

"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," GM Europe President Nick Reilly said in a statement. "In order to maintain operations, Saab needed a quick resolution."

GM was scheduled to provide more details during a conference call with reporters Friday morning. The Detroit automaker said it will continue to honor Saab customer warranties.

GM first sought a buyer for Saab in January as part of its restructuring, which included plans to downsize its brands to four from eight. It was previously in talks to sell Saab to a consortium led by the Swedish sports car maker Koenigsegg Group AB, but it turned to Spyker after Koenigsegg in November.

Speculation has since been rampant on the future of Saab. Earlier this week, GM Chairman and CEO Ed Whitacre told reporters he had "a sense it's possible" that the sale to Spyker would go through, but conceded the brand would close by the end of the year if the talks fell apart.

On Monday, China's Beijing Automotive Industry Holdings - originally part of the Koenigsegg consortium - announced it had agreed to buy some powertrain technology from Saab. It gave no details of costs or timing of that purchase.

[ianlou]

Saab, Born from Jets...
killed By GM.

[sjc_1]

Volvo is strong enough to make it on its own, not so for Saab. If they were doing well in the past, they never would have sold to GM. Sure, GM did their share to mess up the company, but the market share in the U.S. and worldwide was not large enough. Aston, Rover, Jaguar and even Hummer had a chance, but Pontiac and Saab did not. It is a changing world in the car business.

[bubbadubba]

I looked it up.
Apparently SAAB Aero is not connected with the auto any more so those excellent aircraft will continue to be produced.
There AP, I did you job for you and I am not even going to charge you.

[bubbadubba]

When I was a kid I always wanted a SAAB Sonnet but by the time I was driving I couldn't get one.
Other than that, I always thought of SAAB cars as junk.
You can pick an almost new one up real cheap in my area including convertibles.
SAAB (auto) needs to be put out of its misery.
But as usual the article is poorly written, what about SAAB aircraft is that affected?

[amerilatino]

Predictable, sad end for a formerly cool car company like SAAB. Luckily, Mercedes Benz saw the light and dumped Chrysler before it got infected with it's American corporation lameness...let's hope the Rover group does better under Tata than it did with Ford, I'd hate to see Jaguar go. Thank heavens Aston-Martin was bought by a real car guy. Anybody out there got cams for an AMG 6.9?

[clarkalex]

Another great car brand down the tubes because of GM's corporate greed, mismanagement and myopic thinking.

[zippiez]

Does GM stand for Gross Mismanagement?
Let's see Oldsmobile, Pontiac, Hummer, Saturn, Saab to mention a few.
So, when will Buick bite it? After all, can't use Tiger anymore to dispell Buick's "its for old people" reputation!

[brianbwb-2009]

"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," GM Europe President Nick Reilly said in a statement. "In order to maintain operations, Saab needed a quick resolution."

In normal-speak, GM wanted to scam the Dutch into a sorry deal, and for reasons unknown, but we can all probably guess, didn't want the Dutch to kick the tires.

The hustlers' trick, "Hurry up, we must do this fast, don't worry about it, trust me."

It is sad that every European carmaker that was bought over by, or merged into a US concern, suffered because of the perceived (and deserved) reputation of shoddy product out of "Detroit".

It is, however, a blessing for pre-Detroit Saab owners, their cars are now collector's items.

[infantryman1968]

by brianbwb-2009 December 18, 2009 10:14 AM EST

In normal-speak, GM wanted to scam the Dutch into a sorry deal, and for reasons unknown, but we can all probably guess, didn't want the Dutch to kick the tires.

The hustlers' trick, "Hurry up, we must do this fast, don't worry about it, trust me."


Gee, kind of like Health Care Reforme eh?

Hey, dont you and Obama run GM now?

[brianbwb-2009]

trust me son, if I did, the company would be more profitable than now.

In answer to your obvious attempt at lameness, we own shares, until the company pays back the money it begged from us.

In fact, We own controlling shares, but, in an attempt to please the fascists like yourself, Mr. Obama chose not to insist on voting rights as majority shareholders.

Seems like you thing GM's problems started with this president. Sucker.

[brianbwb-2009]

"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," GM Europe President Nick Reilly said in a statement. "In order to maintain operations, Saab needed a quick resolution."

In normal-speak, GM wanted to scam the Dutch into a sorry deal, and for reasons unknown, but we can all probably guess, didn't want the Dutch to kick the tires.

The hustlers' trick, "Hurry up, we must do this fast, don't worry about it, trust me."

It is sad that every European carmaker that was bought over by, or merged into a US concern, suffered because of the perceived (and deserved) reputation of shoddy product out of "Detroit".

It is, however, a blessing for pre-Detroit Saab owners, their cars are now collector's items.

[presjfk]

I am surprised the Swedish government hasn't bought the company.

[bubbadubba]

You forgot one thing about Swedish people, they are not stupid.

[jwesel1]

by bubbadubba December 18, 2009 11:11 AM EST
You forgot one thing about Swedish people, they are not stupid.
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Does this comment apply to Mrs. Woods?