GM's deal to sell Saab collapses, automaker announces today
DETROIT — A Swedish specialty automaker has backed out of a deal to buy Saab from General Motors Co., casting serious doubt on the future of the troubled brand.
GM said Tuesday that Koenigsegg Group AB has decided to end the deal, which was announced in June. Financial details of the Saab acquisition were not disclosed by GM.
Locally, Suburban Saab in Ann Arbor announced last week that it would retain the brand at its dealership even as GM notified 40 percent of U.S. Saab dealers that they'd lose the brand once the Koenigsegg deal closed.
GM had been trying to unload the Swedish Saab brand as it restructured under bankruptcy protection earlier this year.
GM Chief Executive Fritz Henderson says the Detroit automaker is disappointed in the decision and will take the next several days to figure out what to do.
A person briefed on the deal said Tuesday that Koenigsegg informed GM of the decision on Monday, and Saab's future is now unclear. GM's board will have to decide the company's next move, said the person, who asked not to be identified because the decision has not been made.
The deal, in the works for months, apparently fell through because Koenigsegg had trouble arranging financing. The company in August said it lacked about 3 billion kronor ($417 million) to conclude the deal.
Koenigsegg Group said in a statement Tuesday that it came to the "painful and difficult conclusion" that it wouldn't be able to complete the deal.
"The time factor has always been critical for our strategy to breathe new air into the company," it said. "Unfortunately delays in the completion of the deal have resulted in risks and uncertainties that stop us from carrying out the business plan."
In September, a consortium led by Koenigsegg struck a preliminary agreement with Beijing Automotive Industry Holdings to give the Chinese company a minority stake in Koenigsegg Group.
The consortium includes Norwegian investor Baard Eker and Augie K. Fabela II, co-founder and former chairman of Russian telecom operator VimpelCom.
The deal was subject to a funding commitment for Saab from the European Investment Bank, to be guaranteed by the Swedish government.
Comments
braggslaw
Thu, Nov 26, 2009 : 11:13 p.m.
I don't need to be different to stand out. If you like the car because nobody else has it...good for you. My point is that SAAB never made money and never would make money because it dresses up a basic GM Epsilon platform. The sales never justified the investment and it was not that great of a performance car because it was front wheel drive biased. If you make more money than me, congratulations on being a millionaire.
stunhsif
Thu, Nov 26, 2009 : 9:17 p.m.
Braggslaw, not to get into a whining match with you but I know a bit about my car and car's in general. I have bought over 20 news cars over the years. I am 50 and not a college professor nor a PBS viewer. My car has 280 horsepower and an Aisin 6 speed auto. The 3.6 output is 304 horsepower in the CTS but I didn't buy the SAAB to go racing. I have owned Corvette's, Cadillac's and BMW's and I bought the SAAB because I got a great deal on it and it is rare. Owning a BMW is like owning a Toyota Camry, everyone has one. My Turbo X Sportcombi is not just another 9-3. Plus, this car get's way more looks and comments from people asking what it is. There are 240 cars in the entire USA just like mine and I like the fact I drive a rare car. Sounds like you are just trying to justify why you don't own one? Too expensive for ya?
braggslaw
Tue, Nov 24, 2009 : 10:22 p.m.
Hey Stu, Your 2.8 has less output than the 3.6 liter and weighs more and is less fuel efficient. The only reason they turbocharged was to keep brand character. They changed displacement adding weight to the block and added weight in plumbing... the result a heavier engine with virtually the same output as the naturally aspirated 3.6. the Saab underpinnings are GM epsilon platform, the same suspension (tuned slightly differently) and of course some expensive extras that you mentioned to justify the 100% cost increase. It is front drive weight biased vehicle, it is not a rear wheel drive performance vehicle. Only college professors and PBS viewers are SAAB fanatics. Too bad there only a 100 or so of you.
Ignatz
Tue, Nov 24, 2009 : 9:55 p.m.
Saab is a fine make of automobile. Perhaps if they included a Gripen with the deal they would sell more.
stunhsif
Tue, Nov 24, 2009 : 9:11 p.m.
HEh Braggslaw, My 08 Saab 9-3 Sportcombi Turbo X is not just a "so so derivative of the FWD Malibu or Insignia". My car has the 2.8 Turbo which is not available in either of those two cars and it has the Haldex AWD platform which is the most sophisticated AWD currently used by any auto manufacturer. Don't just generalize as you have when you don't have the facts!! The Malibu's headlights don't turn with the steering wheel, they don't go up or down the grade of the road and they are not Xenon headlights either. The Saab has better head restraints and more airbags as well. There is no comparing a Chevy Malibu to my Saab Turbo X Sportcombi trust me, I almost bought a loaded Malibu until I drove the Saab. I also bought it at Suburban Chevrolet here in A2!
braggslaw
Tue, Nov 24, 2009 : 5:37 p.m.
Saab never made money. It is in the most expensive place in the world to make cars. It's cars are only so-so FWD derivatives of the malibu and insignia. It needed to die.
stunhsif
Tue, Nov 24, 2009 : 12:56 p.m.
I hope that a buyer can be found for Saab. I have a 2008 Saab 9-3 Turbo X Sportcombi and I love it. Saab doesn't deserve to die like Oldsmobile-Pontiac and Saturn have.