General Motors to kill off Saab

General Motors have been in talks with Dutch sports car manufacturer Spyker Cars with regards to a takeover, but negotiations have broken down and GM has decided to wind down the Swedish carmaker's operations.

"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," said GM Europe President Nick Reilly.

This was GM's second failed attempt to sell off the Saab brand, after Swedish supercar maker Koenigsegg withdraw its offer for Saab earlier this year despite already agreeing terms and completing negotiations. GM however has reassured Saab owners that it will continue to honour warranties and provide servicing and spare parts to existing owners.

"We will work closely with the Saab organization to wind down the business in an orderly and responsible manner," said Reilly. As this was neither a bankruptcy, nor a forced liquidation, the company expects all of Saab's debts and supplier payments to be completed.