Alert! GM may close SAAB forever! image

Last week GM Board announced that will not sell SAAB to Koenigsegg. One of the reasons not selling its Nord European brand was, maybe, because Koenigsegg didn’t offered the amount expected. Now, according to Bloomberg, General Motors Co. doesn’t expect to find new bidders for Saab and may shut the bankrupt unit. This is incredible.

Saab’s future will be decided at a Dec. 1 GM board meeting, said the people, who asked not to be identified because the talks are private. While directors might opt to keep the Swedish division, as they did with the Opel unit this month, GM has a contingency plan that calls for winding down the brand, the people said.

“They should just get rid of it,” said Tom Stallkamp, industrial partner at buyout firm Ripplewood Holdings LLC, which was part of an unsuccessful bid for Opel in Germany. Saab “really doesn’t matter in terms of technology, and there is no synergy like there was with Opel.”

Closing Saab instead of selling would still help GM achieve the goal of trimming U.S. brands to four from eight while working to return to profit after a U.S.-backed bankruptcy. A Koenigsegg sale would have protected jobs at Saab while wrapping up GM’s affiliation with the brand by year’s end.
The collapse of that accord yesterday marked the third brand sale to falter since GM’s July 10 exit from Chapter 11. GM backed out of the Opel sale to a group led by Magna International Inc., and Penske Automotive Group Inc. withdrew in September from a plan to buy Saturn.

Well at this point, we cannot understand GM’s move. Financially speaking, maybe this move will be ok, but, how about the jobs? According to Wikipedia, Saab has a total of 13.757 employees ( 2008 stat ).

Source: Bloomberg