A sad farewell for Saab cars

Los Angeles : General Motors Co.'s plans to save Saab by selling it have failed, and the storied Swedish brand will be the latest to hit the scrap pile, the automaker said.

The troubled Detroit automaker said that its last-minute negotiations to sell Saab to a Dutch supercar maker, Spyker Cars, fell through because of due diligence issues that could not be resolved.

Those talks followed the breakup of a deal to sell Saab to another supercar maker, Sweden-based Koenigsegg, late last month.

"We regret that we were not able to complete this transaction," Nick Reilly, president of GM Europe, said. "We will work closely with the Saab organisation to wind down the business in an orderly and responsible manner."

Separate talks with a Chin-ese automaker have resulted in the sale of some powertrain technology owned by Saab, but will not save the brand, which GM has had a stake in since 1990 and fully owned since 2000.

Initiate activities

As a result, the company will initiate activities to shutter Saab completely, a process it has been undergoing with the Pontiac and Saturn brands as well.

GM's restructuring plans included just four of the eight brands in its portfolio: Chevrolet, GMC, Buick and Cadillac.

Before filing for Chapter 11 bankruptcy protection this year, GM said it would kill off Pontiac and attempt to sell Saab, Saturn and Hummer, which it had been attempting to sell since at least late 2008.

A deal to sell Saturn to car distributor Penske Automotive ran aground in late September, leaving only Hummer still in play. That sale, to a Chinese heavy manufacturer, Sichuan Tengzhong, is still being finalised.

The wind-down of Saab will commence immediately, the company said.

Drivers of the vehicles will still be able to get warranty service, and parts for the vehicles will continue to be made available.

"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," Reilly said.

— Los Angeles Times-Washington Post News Service