GM lets Saab die

NEW YORK (CNNMoney.com) -- General Motors is shutting down its Swedish car brand, Saab, after attempts to close a deal with a buyer failed. GM had announced earlier this year that it was close to reaching a deal with Swedish super-carmaker Koenigsegg. That deal fell, though.

Dutch exotic carmaker Spyker then emerged as a bidder for Saab, but that deal couldn't be concluded in time, GM said. In both cases, according to GM, issues arose during negotiations that prevented a final sale. GM executives would not say what the specific problems were, however.

GM said it still intends to sell some Saab 9-3 and 9-5 technologies to the Chinese automaker Beijing Automotive Industry Holdings Co. Ltd. That deal was announced last week.

With GM's announcement that it's winding down Saab, BAIC or other companies may be able to buy more of Saab's assets, possibly even the brand name itself, Smith said. But no buyers have expressed interest, yet.

GM has owned the Swedish automaker since 1989; Saab has been making cars since 1949. GM will now begin winding down Saab production, but warranties will continue to be honored, and spare parts will still be available, the company said.

In the past two decades, GM has made every effort to turn Saab into a profitable car brand, Smith said. But recent global economic problems were simply too much for the still-weak automaker to survive.

Sweden's other major automaker, Volvo, is currently owned by Ford, which is in the process of selling it to the Chinese automaker Geely.

http://money.cnn.com/2009/12/18/autos/saab_closed/index.htm?cnn=yes