G.M. Plans to Close Saab After Talks Collapse
G.M. had been in final sales negotiations with a Dutch maker of high-end sports cars, Spyker Cars, but issues arose during the due diligence process that made the sale impossible before G.M.?s Jan. 1 deadline, the company said in a statement.
?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,? the president of G.M. Europe, Nick Reilly, said.
?We regret that we were not able to complete this transaction with Spyker Cars,? Mr. Reilly said. ?We will work closely with the Saab organization to wind down the business in an orderly and responsible manner.?
Saab will continue to honor warranties, while providing service and spare parts to current Saab owners around the world, G.M. said. Mr. Reilly said that the move was not a bankruptcy or forced liquidation, so he expected Saab to pay its debts, including those of suppliers.
But with a narrow, though loyal, customer base focused on Sweden, Britain and the American Northeast, Saab has proved too small to lure the world?s big automakers, many of which are seeking tie-ups to increase economies of scale.
Earlier this month, the Beijing Automotive Industry Holding Company struck a deal for the right to produce versions of the older 9-5 and 9-3 models in China.
In late November, the Swedish sports carmaker, Koenigsegg, backed out of the deal to buy the unit. It was the third time in less than two months that a sale of a G.M. brand has been called off, reflecting the difficulty of selling underperforming divisions in the midst of a global sales slump.
In early November, G.M. also backed out of a deal to sell its European operations, Opel, to a Canadian parts supplier and Russian bank. And in September, G.M. announced that the Saturn brand and dealerships would close after Penske Automotive terminated its deal to buy the carmaker.
G.M. still has a tentative deal to sell Hummer to a Chinese industrial machinery manufacturer.
Saab, which filed for bankruptcy protection in Sweden in February, has been a perennial money-loser and is among G.M.?s smallest brands, with sales of 93,000 vehicles worldwide last year.
It is on pace to sell fewer than 10,000 vehicles in the United States this year.
G.M. paid $600 million for half of Saab in 1990 and $125 million for the rest in 2000. Terms of the deal with Koenigsegg have not been revealed, but it was contingent on $600 million of financing from the European Investment Bank and Swedish government guarantees.
Saab, which originally made fighter planes, began to make cars after World War II in an effort to branch out.