Saab to be shut down

[Reaper]

Saab Sale Cannot Be Concluded
Brand to be Wound Down

2009-12-18

Detroit. General Motors announced today that the intended sale of Saab Automobile AB would not be concluded. After the withdrawal of Koenigsegg Group AB last month, GM had been in discussions with Spyker Cars about its interest in acquiring Saab. During the due diligence, certain issues arose that both parties believe could not be resolved. As a result, GM will start an orderly wind-down of Saab operations.

"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," said GM Europe President Nick Reilly. "We regret that we were not able to complete this transaction with Spyker Cars. We will work closely with the Saab organization to wind down the business in an orderly and responsible manner. This is not a bankruptcy or forced liquidation process. Consequently, 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."

Saab will continue to honor warranties, while providing service and spare parts to current Saab owners around the world.

As part of its efforts to become a leaner organization, GM began seeking a buyer for Saab's operations in January. Last week, Saab Automobile AB announced that it had closed on the sale of certain Saab 9-3, current 9-5 and powertrain technology and tooling to Beijing Automotive Industry Holdings Co. Ltd. (BAIC). GM expects today's announcement to have no impact on the earlier sale.

As the company continues to reinvent itself, GM has been faced with some very difficult but necessary business decisions. The focus will remain on the four core brands – Buick, Cadillac, Chevrolet and GMC – and several regional brands, including Opel / Vauxhall in Europe. This will enable the company to devote more engineering and marketing resources to each brand and model.

A media conference call with John Smith GM Vice President, Corporate Planning and Alliances will take place at 9:45 a.m. Eastern Time.

General Motors Company, one of the world's largest automakers, traces its roots back to 1908. With its global headquarters in Detroit, GM employs 209,000 people in every major region of the world and does business in some 140 countries. GM and its strategic partners produce cars and trucks in 34 countries, and sell and service these vehicles through the following brands: Buick, Cadillac, Chevrolet, GMC, GM Daewoo, Holden, Opel, Vauxhall, Wuling and Jiefang. More information on the new General Motors Company can be found at www.gm.com.

[Reaper]

SPYKER, the Netherlands sportscar maker, has renewed its offer for Saab, giving the Swedish carmaker the prospect of an 11th-hour reprieve.

General Motors announced last Friday that it would close Saab for good, consigning the 60-year-old brand to automotive history, after talks to sell to Spyker collapsed.

However, in a spectacular act of brinkmanship, Victor Muller, Spyker's chief executive, issued a new offer, giving GM until the close of London business today (early Tuesday AEDT) to accept.

"We are returning to the table with a renewed offer that addresses every known issue brought to light during the initial negotiations, and that has the full backing of the Saab management," Mr Muller said.

"We have asked GM and all other involved parties to seriously consider this offer. Some 1,500,000 Saabs are on the road today and their proud owners would no doubt welcome the survival of this phenomenal brand."

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Spyker, which is listed on the Euronext stock exchange in Amsterdam, would reveal no more details of its new offer other than that it eliminated the need for a loan from the European Investment Bank by the year end.

GM said last Friday that the failure to secure the loan had been one of the obstacles to concluding a deal.

Spyker, which is based in Zeewolde, in the Netherlands, has been producing hand-built sports cars, retailing for about ₤170,000 ($307,481) since 2000. It sells between 30 and 60 cars a year and employs about 130 people. It briefly entered the world of Formula One racing before selling on the team, which became Force India.

It announced in November that it would be moving its assembly facilities and engineering resources from the Netherlands to Coventry, in the Midlands, where the chassis and body panels for its cars are made.

A spokesman for GM said that the company had received "several inquiries about purchasing various bits of Saab's assets" since its announcement last Friday, but he would not comment on Spyker's renewed offer.

"We will evaluate each inquiry. We will not comment further until these evaluations have been completed," he said.GM, which took a 50 per cent stake in Saab in 1990 and bought the company outright in 2000, has been trying to sell the Swedish company since February as part of its effort to become a leaner organisation and offload loss-making businesses.

As part of its European reorganisation, it has announced many job cuts in Germany, although it has indicated that it will retain most of Vauxhall's 4500 workers in Britain.

Saab directly employs 3000 to 4000 people in Sweden, but Swedish unions fear that closure could bring the jobs toll to 15,000, if losses in the supply chain and related activities were included. About 1600 people work at Saab's 80 UK dealerships and 80 people work at its British headquarters.

GM came close to selling Saab to Koenigsegg, another maker of sports-cars, but the Swedish company withdrew from the talks last month. GM last week sold some of the technology and production equipment for Saab's 9-5 and 9-3 models to Beijing Automotive Industry Holdings Corporation, of China.

Last Friday, Beijing Automotive said that it wanted to explore further co-operation with Saab on projects such as "new energy vehicles".

Saab may be saved in 11th hour offer | The Australian

[the_trademarc]

The thing about Spyker is though, its not the first time they've said, we'll save you, and then let it slip.
Wouldn't be surprised if it doesn't go through though

[Exidor]

Saab, the only car company with more models than customers.

[PaRaDoX]

yaaay, kill it with fire.... die saab...

the way i see it, less ugly cars on the planet now, just need to kill Renault, Fiat, and pretty much anything french (die french cars die) add Suzuki (cars) and all those other little annoying cars that look like they were freshly tested against a concrete slab

[the_trademarc]

yaaay, kill it with fire.... die saab...

the way i see it, less ugly cars on the planet now, just need to kill Renault, Fiat, and pretty much anything french (die french cars die) add Suzuki (cars) and all those other little annoying cars that look like they were freshly tested against a concrete slab

I.e Nissan Micra

[the_trademarc]

And its only gonna get worse cuz China are introducing hatch and sedans from their Great Wall (already have that darthly-looking Ute) and Cherry manufacturers. Incidentally, the original Cherry hatch was exactly the same as the old Mazda3 model, with a different badge and engine. I think Mazda took legal action to stop them producing it.

[mrvdv]

i hope SAAB do shut down because i used to own one and it was shit

[greenfoam]

What was that movie when they put a V8 in a Richard Pryor's Saab turbo, man that was a mint car :P

[Dz811]

Have Saab ever come up with a good looking car? I mean, beauty is in the eye of the beholder... But saabs are just genuinely crap, so what would resurrecting them accomplish? There's a reason they went bust in the first place

[calais24/7]

Best news i've heard all day they are expensive fugly looking cars anyway. Cousin had one and cost an arm and a leg to fix the simplest things.