The US automaker, which emerged from bankruptcy in July after falling victim to a worldwide auto crisis, had been seeking to sell the two loss-making units. Some analysts say the European market that they operate in is burdened with as much as 20 percent too much production capacity. But on Tuesday GM’s deal to sell its Swedish unit Saab to niche luxury carmaker Koenigsegg, backed by China’s BAIC, collapsed after the buyer walked away.
That follows controversy earlier this month when GM backtracked on months of talks to sell a majority stake in Opel to a consortium led by Canada’s Magna International, deciding instead to keep Opel and restructure the business itself.
Trolhattan, Sweden-based Saab, which has not made a profit since 2001, was facing uncertainty on Wednesday. Joran Hagglund, state secretary at Sweden’s Industry Ministry, said GM appeared to still harbor hope of being able to sell Saab. The Swedish government had effectively ruled out a state bailout of the 60-year-old auto brand, saying on Tuesday that a private buyer was the only option for Saab.
GM’s board has a regular monthly meeting scheduled next week, and the question of what to do with Saab will now lead the agenda, a person with direct knowledge of the situation said on Tuesday.
No other bidders have so far emerged for the brand, meaning GM’s only options would be to restart the sale process or to wind down the business, the more likely option, the person said.
