Open

Coming up

Don't miss

Replay


LATEST SHOWS

WEB NEWS

Calls for ISIS media blackout after execution of James Foley

Read more

WEB NEWS

Web users divided over Darren Wilson

Read more

WEB NEWS

Web users take on 'Ice Bucket Challenge' to fight ALS

Read more

ENCORE!

From Paris's Liberation to 'arresting' art in Avignon

Read more

INSIDE THE AMERICAS

Ferguson riots: Pressure mounts on Obama

Read more

IN THE PAPERS

'The pen is mightier than the sword'

Read more

IN THE PAPERS

'Requiem for a recorder'

Read more

DEBATE

Pakistan's Political Turmoil: Can Imran Khan's PTI Party Depose the Government?

Read more

DEBATE

Pakistan's Political Turmoil: Can Imran Khan's PTI Party Depose the Government? (part 2)

Read more

  • US reaches historic $16.7bn settlement with Bank of America

    Read more

  • Special report: Supplying Ukraine’s soldiers on the front line

    Read more

  • US forces tried to rescue slain reporter from IS captors

    Read more

  • Israeli air strike kills three top Hamas commanders

    Read more

  • France delivered arms to Syrian rebels, Hollande confirms

    Read more

  • Two US Ebola patients leave hospital ‘virus-free’

    Read more

  • Tensions high in Yemen as Shiite rebel deadline looms

    Read more

  • Interactive: Relive the Liberation of Paris in WWII

    Read more

  • French village rallies behind besieged elderly British couple

    Read more

  • Former Irish PM Albert Reynolds dies at 81

    Read more

  • Former Femen activist detained after fighting veiled woman

    Read more

  • Thailand coup leader Prayuth Chan-ocha voted prime minister

    Read more

  • Brazil’s Silva launches bid after Campos plane crash death

    Read more

  • Brutal IS beheading video sparks social media pushback

    Read more

  • France’s ex-PM Juppé sets up presidential clash with Sarkozy

    Read more

  • US attorney general visits Missouri town after fatal shooting

    Read more

Business

General Motors to close Saab after Spyker talks break down

Text by News Wires

Latest update : 2009-12-18

General Motors announced Friday that it would be shutting the doors on its Swedish auto brand Saab, after talks with Dutch sports car maker Spyker broke down.

AFP - General Motors said Friday it would shut down its Swedish auto brand Saab after talks failed to produce a buyer for the money-losing unit.

GM said in a statement it failed to reach an agreement with Dutch sports car maker Spyker on a sale of the division, following the withdrawal of a bid last month from Sweden's Koenigsegg Group AB.

"GM had been in discussions with Spyker Cars about its interest in acquiring Saab," the Detroit firm's statement said.

"During the due diligence, certain issues arose that both parties believe could not be resolved."

"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," GM Europe president Nick Reilly said.

"In order to maintain operations, Saab needed a quick resolution. 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."

GM said the move to end Saab operations was among "some very difficult but necessary business decisions" as the new US auto giant tries to restore profitability after a massive bankruptcy restructuring aided by the US and Canadian governments.

The company has decided to end its Saturn and Pontiac brands in the United States and has reached a deal to sell its Hummer brand to a Chinese buyer.

Earlier this week, GM agreed to sell some Saab assets to China's Beijing Automotive Industry Holding Co.

State-owned BAIC will acquire the technology for Saab's 9-3 and 9-5 car models, turbine engines and gearboxes, allowing the Chinese firm to develop its own-brand cars using the Swedish carmaker's technology.

GM said that in the wind-down of Saab, it would satisfy debts including supplier payments and would continue to honor warranties and provide parts to Saab owners around the world.

Saab employs some 3,400 people in Sweden and sold just over 93,000 cars worldwide in 2008.

Under GM's stewardship spanning almost two decades, Saab rarely posted a profit and last year lost 3.0 billion kronor (241 million euros, 341 million dollars at the time).
 

Date created : 2009-12-18

  • AUTO INDUSTRY

    GM and Chinese partner set eyes on Indian market

    Read more

  • AUTO INDUSTRY

    General Motors CEO steps down

    Read more

  • AUTO INDUSTRY

    Koenigsegg gives up its bid to buy GM's Saab

    Read more

COMMENT(S)