DETROIT — GM's beleaguered Saab brand is still clinging to life. Without naming the suitors, the General Motors board late Tuesday said it has decided to "evaluate potential bids" for its Saab brand this month and decide by the end of the year if a sale is feasible. If not, the automaker said it will "begin an orderly wind down of the global Saab business."
"The GM Board of Directors has received expressions of interest in Saab since the conclusion of negotiations with Koenigsegg Group AB," said GM in a statement. But it said that "due to non-disclosure agreements, we will not confirm or comment on any potential transactions or other matters unless, and until, we determine that disclosure is appropriate."
On November 24, GM announced that the proposed sale of the Swedish subsidiary to Koenigsegg had been "terminated at the discretion of the buyer." Saab, at that point, appeared to be poised to suffer the same fate as GM's 19-year-old Saturn brand, which was killed by GM last month after Penske Automotive Group terminated its agreement to buy Saturn, citing concerns about supplies of vehicles. The new Saab 9-5 is supposed to go into production next year, but the most recent statement by GM made no reference to that launch.
Swedish officials traveled to Detroit earlier this week to urge GM to speak with other potential Saab bidders before deciding whether to close the brand. According to media reports, other potential Saab bidders include Chinese automaker Beijing Automotive Industry Holding Co., a partner in the failed Koenigsegg bid, as well as Wyoming-based investor group Merbanco. Dutch sports-car maker Spyker Cars is also said to be on the short list of possible bidders, along with New York City-based private equity firm Renco Group.
The turmoil at Saab was also linked to the abrupt departure of GM President and CEO Fritz Henderson on Tuesday. Although GM did not explain Henderson's resignation, the CEO was plagued by a number of recent setbacks, including the failed Penske and Saturn deal as well as the failure to sell Saab to Koenigsegg.
Inside Line says: Saab's fate should be clear in just a matter of weeks. — Anita Lienert, Correspondent
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firstclass says:
10:42 AM, 12/02/2009
From dust thou art, and unto dust shall thou return. Ashes to ashes dust to dust... I feel like my mom is trying to hide the fact that my dog is dead. I'm a new Saab lover but I don't want to see this company on Life-support. GM has my consent to pull the plug.