After an inability to find a buyer, General Motors announced Friday morning it will be closing down the Saab unit.
GM has been looking for a buyer of the Swedish auto-unit for a year. It was in final negotiations with the Dutch high-end sports car maker, Spyker Cars but determined there were issues that neither party believed could be resolved, according to a GM press release.
“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,” said GM Europe President Nick Reilly in a release. “We regret that we were not able to complete this transaction with Spyker Cars.”
Current Saab owners need not worry. GM will continue to honor Saab warranties and provide service and spare parts to current Saab owners all over the world.
GM carefully makes the distinction that the decision to close down Saab is not a bankruptcy. Suppliers will be paid.
“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,” said Reilly in a release.
“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.”
The decision to try to sell Saab came as part of an overall strategy for GM to create a leaner business operation, focusing its on core brands, Buick, Cadillac, Chevrolet and GMC. Another near-deal was with Swedish luxury car firm, Koenigsegg. The deal fell through in November.
Written by Sharalyn Hartwell
HULIQ.com
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