With the NHTSA likely applying plenty of pressure after it was questioned over Toyota’s recent recalls, General Motors has announced a recall of 1.3 million vehicles due to power steering issues. The recall affects 1.3 million models including the 905,000 Chevrolet Cobalt models in the U.S., assembled for model year 2005-10. The recall also affects the 2007-10 Pontiac G5, as well as the 2005-06 Pontiac Pursuit in Canada and the 2005-06 Pontiac G4 in Mexico.

GM insists that it has notified the NHTSA and has been operating its own investigation since 2009. The recall comes after over 1,110 complaints that have been linked to 14 crashes and one injury.

GM has announced it it working on a fix and will notify all customers as soon as possible.

[Source: Automotive News]

Just a day after announcing the successful sale of Saab, General Motors today announced that a deal to sell its Hummer unit of SUVs has fallen through. GM has been negotiating with Sichuan Tengzhong Heavy Industrial Machines Co., Ltd., but today announced in a statement that the Chinese heavy machinery maker was, “unable to complete the acquisition of Hummer.”

GM agreed to try and find a buyer for its Hummer brand upon exiting bankruptcy last year. GM decided to refocus on just four brands (Chevy, Buick, GMC and Cadillac). Since then it announced the shut-down of the historic Pontiac brand and also the wind-down of Saturn after a deal to sell it to Penske fell through. Just yesterday GM completed the sale of Saab to Dutch automaker Spyker.

GM has said it will honor Hummer warranties and provide service support and parts to owners worldwide.

Official release after the jump:

General Motors has just announced that the sale of its Swedish Saab unit to Dutch exotic car maker Spyker has been completed. The new company, called Saab Spyker Automobiles, will now begin a new era for Saab, saving thousands of jobs in Sweden and at dealerships in the United States.

Saab Spyker will begin to sell its new 9-5 model in North America this spring, likely in both a 220-hp and 300-hp form. Saab also has plans to begin production of the 9-4X crossover, based on the same platform as the Cadillac SRX, in the near future. A new 9-3 model is scheduled to come to market in 2012.

Official release after the jump:

General Motors has just announced it has reached an agreement to sell its loss-making Saab division to Dutch exotic car maker Spyker Cars NV. Saab and Spyker will form a new company, Saab Spyker Automobiles and the deal is expected to be finalized in February pending approval by several regulatory bodies and the Swedish government.

“Today’s announcement is great news for Saab employees, dealers and suppliers, great news for millions of Saab customers and fans worldwide, and great news for GM,” said John Smith, GM VP for corporate planning and alliances.“General Motors, Spyker Cars, and the Swedish government worked very hard and creatively for a deal that would secure a sustainable future for this unique and iconic brand, and we’re all happy for the positive outcome.”

The new Saab Spyker Automobiles company is expected to move forward with a plan to bring Saab more up-market, selling fewer vehicles but at higher (and more profitable) pricepoints. No indication has been given as to when Saab will re-start production, with enthusiasts eagerly anticipating the new 9-5 model (above), which dealers have already taken orders for.

Official release after the jump:

Spyker Cars is expected to announced later today that a deal has been reached to purchase Swedish automaker Saab from General Motors. According to Automotive News, a person close to the ongoing talks between GM and Dutch exotic car maker Spyker has leaked the information.

Recently investment company Genii Capital, backed by Formula One boss Bernie Ecclestone backed out of the bidding leaving Spyker as the only interested party.

According to one Swedish TV report, Spyker CEO Victor Muller has said an announcement will be made today and just a few hours ago the Netherlands’ securities agency suspended trading for Spyker shares – a sign that an announcement will be made shortly.

[Source: Automotive News]

What’s Swedish automaker Saab worth? According to some reports, just $1.

Recent rumors have suggested that a partnership between Genii Capital, Formula One boss Bernie Ecclestone and Swedish businessman Lars Carlstrom will offer General Motors one hundred shinny pennies or the loss-making Swedish automaker, saving GM the cost of shutting it down. GM has already hired AlixPartners as a wind-down firm, but the cost of shuttering Saab could be as high as $145 million.

The well-backed group hopes to convince GM that it has a long term business plan for Saab.

And while gaining a dollar versus spending $145 million might seem like a practical solution, there are more factors involved as GM will most likely generate a significant amount of cash from the liquidation of Saab. On top of this, there’s a lot on the line for GM, with plenty of R&D spent developing the new 9-5 model. And while GM wants Saab on its feet, an overly competitive Saab using GM’s technology might create problems for America’s largest automaker down the road.

GM has repeatedly said it will shut down Saab but continues to leave the door open should any enticing offers arise.

[Source: FoxNews]

General Motors is asking Tiger Woods for its cars back, after an agreement with the golf star ended two weeks ago. A contract between Woods and GM’s Buick brand expired in 2008, but the controversial golfer was allowed access to GM products, including the Cadillac Escalade SUV that he so famously crashed in his Florida neighborhood. A clause in the contract that allowed him access to those vehicles expired on December 31st.

The Escalade, which also had its windows smashed by Woods’ wife Elin Nordegren, will reportedly be fixed and sold. Woods also reportedly has a Buick Enclave (which he is shown posing next to, above) for personal use.

Since the Tiger Woods scandal first broke, numerous sponsors have separated themselves from the world’s richest golfer including AT&T, Accenture and Gillette, while Tag Heuer is limiting its use of Woods in their ads, while Gatorade has put a hault on a special line of Tiger Woods-branded drinks.

[Source: USA Today]

It’s been said several times before, but GM Chairman and CEO Ed Whitacre today told reporters that the company is shutting down its Swedish Saab unit. “We’re closing down Saab,” he said. “We’re winding it down.”

Recently GM hired on wind-down firm AlixPartners, but continued to say that it was evaluating proposals from several interested parties.

Whitacre today said that so far none of the proposals, which include bids by Dutch exotic car maker Spyker and investment company Genii Capital, have been any better than closing Saab.

Product boss Bob Lutz, notorious for producing quotable phrases did so again today, telling Automotive News that, “For years GM has been procrastinating when it comes to Saab. I’m glad to see that for once GM is sticking with a decision to wind something down.”

Over the 20 years that Saab has been owned by GM, not once did it turn a profit.

The wind-down will begin, however, Whitacre said GM continues to keep its eyes and ears open should a viable proposal be put in front of them. Today, Swedish newspaper Dagens Industri reported the Genii, backed by Formula One billionaire Bernie Ecclestone, will have financing arranged for a cash bit shortly.

[Source: Automotive News]

The future of Saab just became a little more certain today. Or did it?

General Motors has released in a statement that it has hired on AlixPartners to oversea the wind-down of its loss-making Saab unit. In other words, GM is planning to close the doors on the Swedish automaker, sending the company into liquidation and the employees to the soup kitchen.

But hold on… GM also announced, in the same statement, that it has received several proposals by companies looking to purchase Saab and that it is, “continuing to evaluate these proposals.”

Yesterday GM delayed a board meeting that was to decide the fate of Saab, with rumors that it had given until today to get clear proposals from the two main interested parties: Dutch exotic car maker Spyker and and a newly interested party, Genni Capital.

Recent reports have tied Formula One boss Bernie Ecclestone to the Genni Capital bid.

GM has been trying to off-load Saab since it emerged from bankruptcy, with previous efforts, including a sale to Swedish supercar maker Koenigsegg, having fallen through.

Official GM press release after the jump:

General Motors has reportedly delayed a board meeting that was to decide the fate of its loss-making Saab unit today, as a new bidder has emerged onto the scene. GM had already postponed Saab’s fate by dropping a self-imposed December 31st deadline in favor of a January 7th one. Now it is giving Spyker, as well as the new bidder, Genii Capital, one more day.

Genii Capital, a private equity firm, recently made headlines when it took a majority stake in Renault’s Formula One team. The asset-rich private-equity firm is reportedly preparing a cash offer, in direct response to GM CEO Ed Whitacre’s comments that interested parties had best be able to back up their offers with cash. ““It’s real easy,” he said, “show up with the money and you can have it.”

Genii spokesman Lars Carlstroem said that, “Saab is a strong brand on the same level as Porsche and BMW.” He also outlined a plan to restore Saab to profitability. It would work much in the way that the original Koenigsegg (a previous bidder) plan would, selling fewer, more premium vehicles at a high price point.

If a deal does go through tomorrow (with either Spyker or Genii), then Saab is poised to re-start production as early as January 11th. If not, it is expected that GM will begin winding down the Saab division, eliminating thousands of jobs in Sweden and in the U.S., where Saab has over 200 dealerships.

[Source: Bloomberg]