Breaking: Koenigsegg pulls out of Saab deal; future in doubt
Tuesday, November 24th, 2009
Sponsored links:Just when it seemed like everything was coming together, Swedish supercar manfucturer Koenigsegg has canceled its deal to acquire Saab from General Motors. The last-minute decision on Saab makes the small brand the second GM unit to fall through on its intended sale.
Few details have been released regarding the canceled sale, which GM says was “terminated at the discretion of the buyer.”
“We’re obviously very disappointed with the decision to pull out of the Saab purchase,” said GM President and CEO, Fritz Henderson, in a statement released to the media. “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 had intended to acquire Saab, including its new 9-5 and 9-4x models, from GM by the end of the year. Speculation points to an inability for Koenigsegg to secure additional funding from the Swedish National Debt Office and the European Investment Bank.
“The time factor has always been critical for our strategy to breathe new life into the company,” Koenigsegg said in a statement. “Unfortunately, delays in closing this acquisition have resulted in risks and uncertainties that prevent us from successfully implementing the new Saab business plan.”
It is unclear what GM will do with the Saab brand now. Unlike GM’s recent decision to close Saturn after it failed to reach an agreement with Penske Automotive, a full closure of Saab would be more difficult given the unit’s relatively independent status within the Detroit automaker’s umbrella. The automaker could reach out to other automakers for a “fire sale” of sorts of Saab’s assets, which include the brand new models and a Swedish assembly plant.
An unnamed source told the Wall Street Journal that GM will seriously consider scrapping the brand, although its 13-member board will meet to discuss the matter next week.
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