Saab brand dying a slow death

Saab brand dying a slow death

Saab logo

When Koenigsegg’s deal to purchase Saab failed late last month, many feared the worst for the brand’s future. Now, those fears have become reality, as GM has announced that it will begin winding the brand down after “certain issues” arose in the deal with Spyker.

Last week GM sold the tooling systems for the last-gen 9-3 and 9-5 sedans to Chinese carmaker Beijing Automotive Industry Holding Co (BAIC), but left the door open for the sale of the actual operations if it could find the right buyer. That hasn’t happened.

“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.

The real loss will come in the form of products that will now never be produced, including the 2010 9-5 sedan and 9-4X crossover. Both vehicles had created genuine excitement for the future of the marque.

GM estimates a worldwide tally of 3,400 workers that will potentially be made redundant by Saab’s closure.

The death of Saab comes just as GM passes the 20th anniversary of its purchase of a controlling 50% interest in the Swedish brand. It purchased the remaining 50% back in 2000.

Saab logo

When Koenigsegg’s deal to purchase Saab failed late last month, many feared the worst for the brand’s future. Now, those fears have become reality, as GM has announced that it will begin winding the brand down after “certain issues” arose in the deal with Spyker.

Last week GM sold the tooling systems for the last-gen 9-3 and 9-5 sedans to Chinese carmaker Beijing Automotive Industry Holding Co (BAIC), but left the door open for the sale of the actual operations if it could find the right buyer. That hasn’t happened.

“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.

The real loss will come in the form of products that will now never be produced, including the 2010 9-5 sedan and 9-4X crossover. Both vehicles had created genuine excitement for the future of the marque.

GM estimates a worldwide tally of 3,400 workers that will potentially be made redundant by Saab’s closure.

The death of Saab comes just as GM passes the 20th anniversary of its purchase of a controlling 50% interest in the Swedish brand. It purchased the remaining 50% back in 2000.

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