General Motors officially announced today that the sale of Saab Automobile AB could not be concluded. After being in talks with Koenigsegg, which withdrew its bid earlier this month, GM had been in talks with Spyker Cars to sell the loss-making Swedish brand. The Detroit automaker said that “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 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.”
GM said that Saab will continue to honor warranties while providing service and spare parts to current Saab owners. It said that today’s announcement should have no impact on the sale of certain Saab 9-3 and the current 9-5 powertrain technology and tooling to Beijing Automotive Industry Holdings Co. Ltd. (BAIC).
– By: Omar Rana