By Truman Lewis
ConsumerAffairs.com
December 18, 2009
Saab is following its sister Saturn down the last off-ramp. General Motors announced today that it is closing the fabled Swedish automaker after its sale to Dutch manufacturer Koenigsegg fell through. There's no immediate word on what led Koenigsegg to nix the Saab purchase.
The news leaves 218 U.S. Saab dealers scrambling for a replacement and marks the end of the legendary brand, which had a small but fanatical following around the world.
Saab opened its first factory in 1938 to build aircraft for the Royal Swedish Air Force. Its first car, the Saab 92, rolled off the line in 1947 and Saab was on its way to building a reputation for safe, fast and quirky cars.
Saab's history is entwined with that of Fiat and Alfa Romeo. After World War II, the Swedish and Italian automakers shared many chassis, most notably the Type Four, which produced the Alfa Romeo 164 and the Saab 9000.
GM bought a stake in the company in 1989 and bought up the reminaing shares in 2000 but, like so many other U.S. acquisitions of European marques, the deal never quite clicked. When GM hit the wall last December, Saab was among the brands that were put up for sale, along with Saturn, Hummer and Opel. Pontiac didn't even make it to the sales lot -- it was pronounced dead where it sat.
GM thought it had sold off Saab to Swedish supercar maker Koenigsegg Group AB but that deal fell through last month. Then Dutch automaker Spyker Cars NV made a last-minute bid. But today, GM vice president John Smith said it "just didn't work out."
That means Saab will wind down its operations, leaving behind 3,400 employees and 1,100 dealers worldwide. GM said Saab dealers will continue to service Saabs, at least for now.
Bad lot
GM thought it had unloaded its troubled Saturn brand on auto magnate Roger Penske earlier this year, but Penske backed out Sept. 30 and GM drove a stake through Saturn's heart almost immediately.
Penske backed away from the Saturn deal after he was unable to secure an agreement under which Renault SA would have manufactured cars under the Saturn brand.
At last word, GM's sale of the Hummer to a Chinese company was still on track, as is its shutdown of its Pontiac brand. Its sale of European brand Opel to a Canadian company was abruptly canceled when GM decided it would keep Opel.
