After recent talks with a potential buyer fell through, General Motors Co. announced last Friday that it would wind down the operations of its Swedish car brand Saab Automobile immediately.
GM said that last-minute talks with Spyker Cars NV, the Dutch sports car maker, collapsed. That sealed the fate of Saab and its operations would be discontinued, much like Pontiac and Saturn earlier this year.
The collapse of talks was due to “certain issues arose that both parties believe could not be resolved” in a timely manner, according to a GM statement.
According to some European reports, any deal was hinged upon a 400 million euro ($573 million) loan from the European Investment Bank, the European Union’s lending arm. But time ultimately ran out for GM, Spyker, and Saab. GM gave Dec. 31 as the final deadline to reach an agreement to sell Saab.
But on Sunday, Spyker submitted a new offer that, according to reports, would address some of the unresolved issues from the last negotiation. Spyker chief Victor Muller told the media that he was “very confident” that the new offer would resume negotiations.
Spyker was the last potential bidder for Saab’s business after a proposed sale to Koenigsegg fell through last month.
“In order to maintain operations, Saab needed a quick resolution,” said GM Europe President Nick Reilly in a statement late Friday.
Last week, Saab sold certain powertrain and car technologies to Chinese-owned Beijing Automotive Industry Holdings Co. Ltd. (BAIC). That deal was done separately and had no effect on saving Saab the company.
Saab will continue to honor warranties on current vehicles and provide parts for repairs and maintenance, GM said.
GM underwent a government-assisted bankruptcy this summer, and emerged as a new company with only four core brands: Cadillac, Chevrolet, GMC, and Buick. Its Pontiac brand was scrapped, and the company planned to find buyers for Saab, Saturn, and Hummer.
Hummer was sold to China-based Sichuan Tengzhong Heavy Industrial Machinery Company Ltd. in June. A proposed sale of Saturn to Penske Automotive collapsed in September, and GM decided to wind down Saturn’s business.
GM had planned to sell its Adam Opel GmbH, the main European subsidiary that owned Opel in German and Vauxhall in the United Kingdom, to Magna International, a Canadian automotive parts maker. But GM called off the sale on Nov. 3, choosing to keep the subsidiary for itself after deciding that the company is vital to its international operations.
End of a Storied Brand
“We regret that we were not able to complete this transaction with Spyker Cars,” Reilly said. “We will work closely with the Saab organization to wind down the business in an orderly and responsible manner.”
GM obtained full ownership of Saab in 2000. Globally, the brand has a loyal cult following, since its beginnings 63 years ago as a Swedish military aircraft maker. But hope and nostalgia could not save the company.
The end of Saab will likely hit Sweden and its manufacturing industry hard. Several top Swedish lawmakers were at the Saab headquarters in Trollhattan to offer support for employees and the community.
While GM is worried about its own survival in the United States, in a nation of barely 9 million people, Saab’s loss is devastating for the Swedes, many of whom viewed GM’s corporate mismanagement and carelessness as reasons for Saab’s downfall.
Swedish Premier Fredrik Reinfeldt said on Swedish Public Radio, “Basically, they [GM] have not been successful enough at building Saab’s profitability, and they have not either come up to those volumes which modern carmakers probably need.”
Reinfeldt was not surprised by the death of Saab—since GM’s partial ownership 20 years ago, Saab had only one year of achieving profitability.
Only 7,812 Saab cars and SUVs were sold in the United States this year, a 60 percent decline compared with a year earlier.
GM said that last-minute talks with Spyker Cars NV, the Dutch sports car maker, collapsed. That sealed the fate of Saab and its operations would be discontinued, much like Pontiac and Saturn earlier this year.
The collapse of talks was due to “certain issues arose that both parties believe could not be resolved” in a timely manner, according to a GM statement.
According to some European reports, any deal was hinged upon a 400 million euro ($573 million) loan from the European Investment Bank, the European Union’s lending arm. But time ultimately ran out for GM, Spyker, and Saab. GM gave Dec. 31 as the final deadline to reach an agreement to sell Saab.
But on Sunday, Spyker submitted a new offer that, according to reports, would address some of the unresolved issues from the last negotiation. Spyker chief Victor Muller told the media that he was “very confident” that the new offer would resume negotiations.
Spyker was the last potential bidder for Saab’s business after a proposed sale to Koenigsegg fell through last month.
“In order to maintain operations, Saab needed a quick resolution,” said GM Europe President Nick Reilly in a statement late Friday.
Last week, Saab sold certain powertrain and car technologies to Chinese-owned Beijing Automotive Industry Holdings Co. Ltd. (BAIC). That deal was done separately and had no effect on saving Saab the company.
Saab will continue to honor warranties on current vehicles and provide parts for repairs and maintenance, GM said.
GM Restructuring Complete
GM underwent a government-assisted bankruptcy this summer, and emerged as a new company with only four core brands: Cadillac, Chevrolet, GMC, and Buick. Its Pontiac brand was scrapped, and the company planned to find buyers for Saab, Saturn, and Hummer.
Hummer was sold to China-based Sichuan Tengzhong Heavy Industrial Machinery Company Ltd. in June. A proposed sale of Saturn to Penske Automotive collapsed in September, and GM decided to wind down Saturn’s business.
GM had planned to sell its Adam Opel GmbH, the main European subsidiary that owned Opel in German and Vauxhall in the United Kingdom, to Magna International, a Canadian automotive parts maker. But GM called off the sale on Nov. 3, choosing to keep the subsidiary for itself after deciding that the company is vital to its international operations.
End of a Storied Brand
“We regret that we were not able to complete this transaction with Spyker Cars,” Reilly said. “We will work closely with the Saab organization to wind down the business in an orderly and responsible manner.”GM obtained full ownership of Saab in 2000. Globally, the brand has a loyal cult following, since its beginnings 63 years ago as a Swedish military aircraft maker. But hope and nostalgia could not save the company.
The end of Saab will likely hit Sweden and its manufacturing industry hard. Several top Swedish lawmakers were at the Saab headquarters in Trollhattan to offer support for employees and the community.
While GM is worried about its own survival in the United States, in a nation of barely 9 million people, Saab’s loss is devastating for the Swedes, many of whom viewed GM’s corporate mismanagement and carelessness as reasons for Saab’s downfall.
Swedish Premier Fredrik Reinfeldt said on Swedish Public Radio, “Basically, they [GM] have not been successful enough at building Saab’s profitability, and they have not either come up to those volumes which modern carmakers probably need.”
Reinfeldt was not surprised by the death of Saab—since GM’s partial ownership 20 years ago, Saab had only one year of achieving profitability.
Only 7,812 Saab cars and SUVs were sold in the United States this year, a 60 percent decline compared with a year earlier.
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