General Motors Co. said Friday it will shut down Saab after talks to sell the brand to a Dutch carmaker collapsed, marking the third time this year that a deal by GM to sell an unwanted brand has fallen through.
GM said it had a small window of time to complete the deal and issues arose during the sale talks with Spyker Cars that could not be resolved. GM vice-president John Smith said representatives from GM, Spyker and the Swedish government were still in discussions Friday morning when talks fell apart. Smith declined to elaborate on the reasons.
"We’ve been trying to restart, if you will, an investment process without a great deal of time," Smith, who is in charge of GM’s corporate planning and alliances, said during a conference call with reporters. "Like everybody, we would have preferred a different outcome, and we all worked very hard for that different outcome and we’ve come up short."
The announcement marks the death of brand with a small yet loyal following. To enthusiasts, the Swedish company became appreciated for quirks like placing the ignition lock between the front seats rather than on the steering column. It was the first to offer heated seating in 1971.
GM bought a 50% stake and management control of Saab for $600 million after it split from Swedish truck maker Scania in 1989. It bought full ownership in 2000 for $125 million. But even after the GM takeover, Saab remained closely associated with Sweden and its history of making safe, reliable cars.
GM never made money on the acquisition and industry analysts complained that under GM, Saab lost its uniqueness in the crowded luxury segment.
GM first sought a buyer for Saab in January as part of its restructuring, which included plans to cut the number of its brands to four from eight. It was previously in talks to sell Saab to a consortium led by the Swedish sports car maker Koenigsegg Group AB, but it turned to Spyker after Koenigsegg withdrew from the talks in November.
GM’s failure to sell Saab is the third deal to sell an unwanted brand that has fallen through this year.
In September, auto dealership chain owner Roger Penske scrapped plans to buy Saturn after an agreement to get cars from France’s Renault fell through. GM is now phasing out Saturn.
GM’s board last month ended a deal to sell the European Opel brand to a group led by Canadian auto parts maker Magna International Inc., fearing that Opel was too heavily integrated into GM’s global operations and that GM technology would fall into the hands of competitors.
