GM to Phase out Saab Car Business

GM said there was no sale of its Swedish car brand Saab, and begin “an orderly wind-down of the Saab action.”

General Motors has been with the Dutch car manufacturer Spyker professional negotiations, to sell. And Sweden’s Koenigsegg talks fell through earlier this year.

“We are very sorry that we have not been able to complete this transaction with the Spyker cars,” said GM Europe boss Nick Reilly.

General Motors has been trying to sell part of its recovery plan, in January since the Saab.

This is very frustrating. Very sad news, all of its employees in the most difficult moments come
Maud Olofsson, Sweden’s minister

Mr Riley added that all debts would be paid, and the gradual reduction would be “an orderly process.”

From the company’s statement said Saab will continue to meet the security, while providing service and spare parts for Saab owners around the world now.

Last week, the Saab – employs approximately 3,000 people – agreed to work with Beijing to sell its Saab automobile dealers part of the technology. The transaction will not be affected by the latest announcement.

‘Bad news’

The Swedish government said it was unfortunate news, but would not intervene to save Saab.

History of Saab
1937: Saab’s aviation manufacturing base
1946: began manufacturing cars
1969: Mergers and Scania – Vabis
1990: cars and aircraft business split. General Motors Corporation and Investor AB’s stake to 50%
2000: General Motors needs 100% ownership of the
January 2009: General Motors announced the sale of Saab talks
August 2009: Koenigsegg agree to the terms to buy Saab.
November 2009: Koenigsegg withdrew from the negotiations.
December 1, 2009: General Motors said it would take into account the offer by the end of December
December 18, 2009: General Motors, Saab announced the phasing out

“This is very bad. Very bad news for all employees, and its most difficult time” came, and Enterprise Minister Maud Olofsson told the Swedish News Agency TT.

She called the meeting to discuss the situation of trade unions in Monday.

“I do not think GM really knows how to gradually reduce will happen, but General Motors to take responsibility,” she said.

“The most important thing is to consider the employees and the future, concerned about how to make them aware of the majority, how to,” she added.

Last year, the Saab loss of 3.0 billion kronor (pounds 255 meters; $ 412 meters). It does not benefit, and since 2001 from 1.1% of GM’s global sales.

New Focus

General Motors said its focus will be in its four core brands continued – Buick, Cadillac, Chevrolet and GMC – as well as its European operations Opel.

General Motors promised would be a more streamlined company, from bankruptcy protection this year, appeared in July. It suffered a sharp decline in sales, partly due to the financial crisis – but also because of fierce competition from Japanese rivals.

Currently, the company’s 62% owned by the U.S. government.