Business - New Saab Deal Falls Flat

After pulling the deal with Magna over Vauxhall, General Motors will not be completing the Saab deal.

In another bizarre twist to the fortunes of the American car giant General Motors (GM), they will not be selling Saab to Scandinavian company Koenigsegg.

GM confirmed last week that the proposed sale of its Saab subsidiary to Koenigsegg Group AB was terminated at the discretion of the buyer.

In the previous deal which saw GM pull away from the deal, this time it is Koenigsegg who are backing out at the last minute.

"We're obviously very disappointed with the decision to pull out of the Saab purchase," said GM President and CEO, Fritz Henderson.

"Many have worked tirelessly over the past several months to create a sustainable plan for the future of Saab by selling the brand and its manufacturing interests to Koenigsegg Group AB."

"Given the sudden change in direction, we will take the next several days to assess the situation and will advise on the next steps next week."

It seems strange that they would want to pull out as we recently reported that Saab garages couldn’t keep up with demand.

The company were making less cars than they were selling in the showrooms as demand recently rose. Maybe we might see a new era for GM as they come out of the recession with some mor profitable European subsidiaries.

E. Dooley

01/12/2009