GM to Discontinue Saab After Negotiations to Sell Collapse

General Motors Co. announced Friday that it will begin to wind down Saab after talks to sell the brand to Dutch carmaker Spyker Cars failed. In a news release, GM revealed that issues arose during the negotiations that could not be resolved.

In a statement GM Europe President Nick Reilly said:

"Despite the best efforts of all involved, it has become very clear that the due diligence required to complete this complex transaction could not be executed in a reasonable time,. In order to maintain operations, Saab needed a quick resolution."

The Detroit-based automaker said that it will continue to honor Saab customer warranties.

GM first sought to find a buyer for Saab in January as a part of its restructuring plans to downsize from eight brands to just four. GM had also previously been in talks to sell Saab to a consortium lead by Swedish automaker Koenigsegg Group AB, however they withdrew from talks in November. At that time, GM began talking with Spyker.

Earlier this week, GM Chairman and CEO Ed Whitacre said that he had "a sense it's possible" that the sale to Spyker would go through, but noted that the brand would close down by the end of the year of those talks did not pan out.