GERMANY: GM says Saab sale off; brand to be wound down
Author: just-auto.com editorial team | 18 December 2009
Efforts to sell GM's Saab unit to Spyker have ended in failure with GM announcing that it will now start a wind-down of the brand.
GM said in a statement today that the intended sale would not be concluded.
After the withdrawal of Koenigsegg Group AB last month, GM had been in discussions with Spyker Cars about its interest in acquiring Saab.
GM said that 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," GM said.
"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 organisation 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 honour warranties, while providing service and spare parts to current Saab owners around the world.
Last week, Saab Automobile announced that it had closed on the sale of some 9-3, current 9-5 and powertrain technology and tooling to Beijing Automotive Industry Holdings (BAIC).
GM said it expects today's announcement to have no impact on the earlier sale.
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