A DEAL by General Motors to sell its Saab brand collapsed yesterday when the buyer pulled out in a move that threatens the Swedish luxury brand with closure.
GM had been aiming to sell off the brand by the end of next month to a partnership led by the Swedish luxury car builder Koenigsegg and backed by China’s Beijing Automotive Industrial. Koenigsegg said in a statement that it had withdrawn from the sale process, about five months after the two sides had reached a preliminary deal for Saab.
GM chief executive Fritz Henderson said the car firm would take the next few days to consider the options for Saab.
“We’re obviously very disappointed with the decision to pull out of the Saab purchase,” Henderson said in a statement.
There are no other bidders for the brand, meaning GM’s only options would be to restart the sale process or opt for closure, a person with direct knowledge of the situation said.
The collapse of the sale of Saab comes as GM scrambles to restructure its European Opel unit. It’s board decided earlier this month to keep Opel rather than sell it to a group led by auto parts maker Magna International.
Swedish industry ministry state secretary Joeran Haegglund said the survival of Saab hinges on a new private buyer wanting to acquire the firm. He said the Swedish government would not end up as an owner.
- Reuters/Bloomberg