In what could potentially be a fatal blow to Saab, Koenigsegg Group AB notified General Motors that they have backed out of their plan to purchase the Swedish automaker. GM released a brief statement today that they were saddened by the news, and would be meeting to decide the fate of Saab in the next few days. As it stands, it is anyone’s guess as to what GM could do-go back to another company that expressed an interest in Saab? Or cut their losses completely, and walk away?
GM themselves are likely shocked at the news. There is a glimmer of hope-when Roger Penske backed out of buying Saturn, GM said in the same press release that they would begin winding down the brand immediately. GM seems prepared to take a deep breath, and think about the future. Speaking of the future, an all-new 9-5 is waiting in the wings, and early reports indicate the car is quite good. Has GM’s neglect of Saab made it unsustainable to keep going? Is GM ready to walk away from the money spent to develop a new 9-5? If GM elects to keep Saab, will the US government balk when the company promised Saab would be sold? Or is the writing on the wall when Sweden’s own government refuses to save the company? Stay tuned!