GM had hoped to close the deal with Koenigsegg, backed by China's Beijing Automotive Industrial Holding Ltd., before the end of next month. The companies had reportedly reached a tentative arrangement about five months ago.
Now it’s back to the drawing board for GM. Since the auto manufacturer giant declared bankruptcy and its subsequent government funding, it has been trying to shed brands and keep a more focused sales plan.
A deal to seal the Saturn unit also fell through earlier this year.
“We're obviously very disappointed with the decision to pull out of the Saab purchase," said GM Chief Executive Fritz Henderson in a statement. "Many have worked tirelessly over the past several months to create a sustainable plan for the future of Saab by selling the brand and its manufacturing interests to Koenigsegg Group AB.”
Henderson continued, “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."
The GM Board of Directors will meet next Tuesday to discuss next steps.
Written by Sharalyn Hartwell
HULIQ.com
Posted November 24th, 2009 by Sharalyn Hartwell
