GM to 'wind down' Saab business

by GD Fri 18 Dec 2009, 5:00 pm

GM has been trying to sell Saab since January.

GM says it has failed to sell its Swedish car brand Saab and will begin "an orderly wind-down of Saab operations".
GM had been in talks with the Dutch speciality car maker Spyker over a sale. Talks with Sweden's Koenigsegg also fell through earlier this year.
"We regret that we are not able to complete this transaction with Spyker Cars," said GM Europe boss Nick Reilly.
GM has been trying to sell Saab as part of its turnaround plans since January.

It is very dismal. Very sad news for all of the employees and its comes at the worst possible time GM to 'wind down' Saab business End_quote_rb

Maud Olofsson, Swedish Enterprise Minister

Mr Reilly added that all debts would be paid and that the winding-down would be "an orderly process".
A statement from the firm said that Saab would continue to honour all warranties, while providing service and spare parts to current Saab owners around the world.
Last week, Saab - which employs about 3,000 people - agreed a deal with Beijing Automotive to sell it some of Saab's technology. That deal will not be affected by the latest announcement.
'Sad news'
Sweden's government said it was sad news but that it would not step in to save Saab.

THE HISTORY OF SAAB
1937: Saab founded as aircraft maker
1946: Starts making cars
1969: Merges with Scania-Vabis
1990: Car division splits from aircraft business. GM and Investor AB take 50% stake
2000: GM takes 100% ownership
Jan 2009: GM announces talks to sell Saab
Aug 2009: Koenigsegg agrees terms to buy Saab.
Nov 2009: Koenigsegg pulls out of talks.
1 Dec 2009: GM says will consider offers until end of December
18 Dec 2009: GM announces the winding down of Saab

Source: Reuters

"It is very dismal. Very sad news for all of the employees and its comes at the worst possible time", the Enterprise Minister Maud Olofsson told the Swedish news agency TT.
She has called a meeting to discuss the situation with unions on Monday.
"I don't think GM really knows how the wind-down is going to take place, but GM has to take its responsibility," she said.
"The most important thing right now is to take care of the employees and the future, how to make the most of their know-how" she added.
Last year Saab lost 3bn kronor (£255m; $412m). It has not made a profit since 2001 and made up 1.1% of GM's global sales.
New focus
GM said its focus would remain on its four core brands - Buick, Cadillac, Chevrolet and GMC - as well as its European business Opel.
GM pledged to become a leaner company when it emerged from bankruptcy protection in July this year. It had been hit by a sharp slump in sales - partly because of the financial crisis but also because of stiff competition from Japanese rivals.
The company is now 62%-owned by the US government.
(from BBC)