GM closes Saab

Yes, unfortunately, the deal between Saab and the last remaining bidder left in the running, Spyker Cars, could not be made. As a result, General Motors, the owners of Saab, have decided to axe the Swedish manufacturer.

After GM announced earlier this year that it was to sell Saab, many bidders emerged, all wanting to buy the Swedish firm. The last 2, Spyker Cars and the Beijing Automotive Industry Holding Corporation (BAIC), looked good to ending a transaction with the American group. However, BAIC was soon out of the running and then, Nick Reilly, GM’s European president announced that an agreement wasn’t reached with Spyker Cars either.

“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. In order to maintain operations, Saab needed a quick resolution,” , Reilly said.

As a result of this close down, 3400 employees are expected to lose their jobs and the 1100 Saab dealers worldwide will have to find another company to work with. GM Vice President of Corporate Planning John Smith said that “during the course of the negotiations with Spyker, unresolvable issues arose on both sides.” However, GM hasn’t revealed what these “unresolvable issues” mean and neither did Spyker. The American car group also accused the Swedish government that, although it has made efforts to keep Saab alive, they didn’t want to be an investor for the company.

The business of shutting down Saab will begin in January and it is expected to take several months. In this period, Saab’s production and distribution facilities will stop and its employees will be made redundant.

Source: Autocar

On second toughts they might not close Saab yet…

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