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Sale of Saab falls through, could mean the end

Posted by Hootan Mahallati | November 24, 2009 | In gm news saab

Saab 9-5

In a disastrous turn for the small Swedish maker, the consortium of buyers for Saab, which included Swedish supercar manufacturer Koenigsegg, have reversed their decision to buy Saab. This news comes one month prior to the planned signing of the deal that would have saved Saab. Considering the fact that there exist no other bidders for Saab, this development could signal the shutting down of the historic, quirky Saab brand. Should Saab's fate be this bleak, it would mean that the relatively-promising new Saab 9-5 will never see the light of day.

"We're obviously very disappointed with the decision to pull out of the Saab purchase," GM CEO Fritz Henderson said earlier today. "Given the sudden change in direction, we will take the next several days to assess the situation and will advise on the next steps next week."

In a separate statement, Koenigsegg, which has been carrying out due diligence on Saab for five months, said "The time factor has from the beginning been critical for our strategy to breathe new life into the company. Unfortunately, delays in completing the deal have led to risks and uncertainties that prevent us from successfully carrying out our business plan for Saab Automobile."

GM's 13-member board is reportedly scheduled to meet next Tuesday in Detroit to decide Saab's fate. The downfall of this deal further compounds GM's headaches. About a month ago, Penske pulled out of a deal to buy Saturn, spelling the death of that brand. The General has still not sold Hummer to the prospective Chinese buyers that have expressed interest, and it is currently dealing with the fallout caused by its decision not to sell Opel.

[Source: Automotive News]

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