Here is some big news – GM’s deal to sell off Saab to Koenigsegg Group AB has fallen apart. When it first became apparent that GM was going to sell or shut down Saab the Swedes had their sense of national pride kick, leaving Koenigsegg with the desire to turn their VERY small car company into the savior of Saab (and the Swedish brand).
Initially the deal made no sense. Koenigsegg only produced 34 cars during their first years of operation, how could the company become a high volume company? They do not have the capacity or management experience to run the brand. Turns out the deal didn’t make sense in the end as well seeing the stockholders did not believe Saab could switch from being a “high volume” brand to a luxury brand.
Without a buyer Saab is heading to the giant junk yard in the sky, that is to say Saab is going to close down. If the deal does fall apart it will be the third time GM has failed at selling off a unit – Opel and Saturn being the other two. These broken deals only go to show how bad the car industry really is.
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