Saab likely to close as GM fails to sell car brand (not even leftie Sweden will do buyouts!)
The AP, via Yahoo News ^ | 11-24-09 | TOM KRISHER and DEE-ANN DURBIN
Posted on Wednesday, November 25, 2009 4:30:41 PM by DesScorp
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A deal for General Motors Co. to sell Saab to a specialty carmaker has collapsed, leaving the storied Swedish brand born from jets in 1947 close to extinction.
Koenigsegg Group AB, a consortium formed by Swedish luxury sports car maker Koenigsegg Automotive AB, said Tuesday it pulled out of the deal in part because it was unable to agree with investors on how best to move the brand from mass-market to premium.
For GM, it was the third time this year that a deal to shed one of its brands fell apart as it tries to recover from a stay in bankruptcy protection by focusing on a core of four: Chevrolet, Buick, GMC and Cadillac.
The next move is up to GM's board, which will decide Saab's future in a few days. But with no apparent backup investors and the Swedish government refusing to buy Saab, GM may follow through on a contingency plan to let the brand die.
That jeopardizes the jobs of Saab's 4,500 employees, most of them in Sweden.
Joran Hagglund, a senior official at Sweden's Ministry of Enterprise, said the government will continue talking with GM, but the only solution for Saab is for another company to buy it.
"We have been very clear from day one that the government will not be the owner," he told reporters in Stockholm.
GM, which earlier this year conceded it has never made money with Saab, is unlikely to keep the brand, and industry analysts said any potential investors likely stepped away when Koenigsegg emerged as the buyer.
(Excerpt) Read more at news.yahoo.com ...
