GM to shut down Saab

General Motors will shut down Saab after the automaker wasn't able to conclude a deal to sell the brand to Spyker Cars, GM said on Friday.

“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," GM Europe president Nick Reilly said in a statement.

"In order to maintain operations, Saab needed a quick resolution. We regret that we were not able to complete this transaction with Spyker Cars. We will work closely with the Saab organization to wind down the business in an orderly and responsible manner. This is not a bankruptcy or forced liquidation process. Consequently, we expect Saab to satisfy debts, including supplier payments, and to wind down production and the distribution channel in an orderly manner while looking after our customers.”

GM said Saab will continue to honor warranties and provide service and spare parts.

One week ago, GM sold the tooling for the Saab 9-5 and some Saab technologies to Bejing Automotive Industry Holdings Co. Ltd. GM said the shutdown of Saab should not affect that sale.

By Dale Jewett