Breaking: Koenigsegg Cancels Purchase of Saab

Colum Wood
by Colum Wood

Swedish supercar maker Koenigsegg has canceled its plans to buy the struggling Saab brand from General Motors, leaving the future of the brand in jeopardy.

“We’re obviously very disappointed with the decision to pull out of the Saab purchase,” said GM President and CEO, Fritz Henderson. “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.”

The news isn’t entirely surprising and has so far been par for the course after GM’s decision to sell its Saturn brand to the Penske Automotive Group fell through a few months back. And just a few weeks ago GM reneged on its plan to sell its European Opel brand to a group headed by Canadian autoparts maker Magna International Inc. GM is in the process of closing its Pontiac brand and is still working to sell-off the Hummer brand to Chinese heavy industry company Sichuan Tengzhong – although it wouldn’t be a surprise to see that deal now fall through.

The move to sell off the brands was part of GM’s larger restructuring plan, arranged as a part of the company’s bailout by the U.S. and Canadian governments.

It is not clear if GM intends to find another buyer for Saab, to keep the brand, or to shut it down. The situation is certain to delay the launch of the all-new 9-5 model.

[Source: Automotive News]

Colum Wood
Colum Wood

With AutoGuide from its launch, Colum previously acted as Editor-in-Chief of Modified Luxury & Exotics magazine where he became a certifiable car snob driving supercars like the Koenigsegg CCX and racing down the autobahn in anything over 500 hp. He has won numerous automotive journalism awards including the Best Video Journalism Award in 2014 and 2015 from the Automotive Journalists Association of Canada (AJAC). Colum founded Geared Content Studios, VerticalScope's in-house branded content division and works to find ways to integrate brands organically into content.

More by Colum Wood

Comments
Join the conversation
Next