DETROIT — The launch of the new Saab 9-5, as well as the future of Saab itself, appears to be in peril with the announcement on Tuesday morning from General Motors that the proposed sale of its Swedish subsidiary to Koenigsegg Group AB has been "terminated at the discretion of the buyer."
"We're obviously very disappointed with the decision [of Koenigsegg] to pull out of the Saab purchase," said GM President and CEO Fritz Henderson in a statement. "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."
Koenigsegg was silent about the end of the deal, with no mention of it on its corporate Web site as of midday Tuesday.
Saab may 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 the vehicles.
It is unclear what impact the Chinese had on the Saab deal and whether that played a part in the demise of the Koenigsegg deal. Beijing Automotive Industry Holding and Koenigsegg had signed a memorandum of understanding in September "to explore growth opportunities in the Chinese and international markets for the products of Saab and BAIC," the two said in a statement on September 9.
Under the terms of that arrangement, BAIC would become a non-controlling minority shareholder in Koenigsegg Group. Koenigsegg Group would own 100 percent of Saab. Such a setup was said to resolve some of the funding issues for Koenigsegg's purchase of Saab.
Also up in the air is the fate of the redesigned Saab 9-5. The new 9-5 sedan, which debuted earlier this fall at the 2009 Frankfurt Auto Show, is slated to go into production starting next year and was poised to be the centerpiece of the brand's revival under new owners.
Inside Line says: GM may have little choice but to wind down the Saab brand. — Anita Lienert, Correspondent
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smihal says:
07:55 AM, 11/25/2009
I've never owned a Saab and probably never will, but if Saab is taken behind the shed and killed I will be genuinely upset.
firstclass says:
10:27 PM, 11/24/2009
I see handshakes and bowing at the next Saab shareholder meeting...let the Chinese have a swing. From the 99 to the 9 I think Saab stayed true to its identity and can be laid to rest with dignity still intact.
flwind says:
03:50 PM, 11/24/2009
"looks like only the chinese(who owm usa) want to do business with o bama motors.i have never owned a gm brand and never will. thank you."
What a stupid and dumbass comment. GM has been in the crapper long before Obama.
MTuzmen says:
03:32 PM, 11/24/2009
Sincerely, think this is good for The "New" GM. SAAB is a strong global brand and even a stronger one in Europe. SAAB brand's status carried no relevance what so ever to Hummer or Saturn under the GM umbrella; it is a well-rooted 'engineering oriented' name. The pull-out will certainly cause some cash flow problems for GM but if I were the GM, I would do everything to keep this brand. If the financials keep improving like they are for the last quarter then its not going to be a difficult task. SAAB does not require anything close to keeping OPEL; check out the numbers if u will... If GM does not decide or is forced not to keep SAAB, then my first guess is that the Chinese will come along rushing and bid even higher than Koenigsegg to buy it; then my second guess is that Penske, getting over his frustration with the Saturn deal may approach GM to sort out a deal. This is feasible for Penske as SAAB has its own/separate manufacturing & engineering facilities(not like Saturn's, fully attached to GM. I would do everything to keep SAAB ownership in the US and NEVER sell it to the Chinese. I do HOPE that Obama & the Auto Task Force will assess the situation in parallel terms to mine. Good for GM; good for the US Auto Industry..! /MT
ferenc says:
03:26 PM, 11/24/2009
looks like only the chinese(who owm usa) want to do business with o bama motors.i have never owned a gm brand and never will. thank you.
93aero says:
02:47 PM, 11/24/2009
:(
adavis2493 says:
01:42 PM, 11/24/2009
I'll be pissed if GM kills Saab. It's the only one of GM's four sold (or killed) brands that has passion, and decent potential.
It will be kind of strange if the weakest brand out of the four (Hummer) may be the only to survive.