Saab to be wound down

Saab will be wound down, after talks between parent company GM and Dutch car maker Spyker collapsed.

Spyker had been in talks with GM to buy the Swedish car maker, but GM says issues arose during the negotiations that could not be resolved.

GM Europe President Nick Reilly said: '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.

'We regret that we were not able to complete this transaction with Spyker Cars. We will work closely with the Saab organisation to wind down the business in an orderly and responsible manner. This is not a bankruptcy or forced liquidation process.

Consequently, we expect Saab to satisfy debts including supplier payments, and to wind down production and the distribution channel in an orderly manner while looking after our customers.'

GM confirmed that Saab customer warranties will continue to be honoured.

Last month, supercar manufacturer Koenigsegg pulled out of a planned move to buy Saab. The sale to Spyker was seen as the last chance for the Swedish car maker. Saab employs 3000 people.

Swedish car industry moves to China?
Last week, Saab announced that it had closed on the sale of certain Saab 9-3, current 9-5 and powertrain technology and tooling to Beijing Automotive (BAIC).

GM expects today's announcement to have no impact on the earlier sale.

Meanwhile, Chinese car maker Geely is Ford's preferred buyer for Sweden's other major car maker, Volvo.