Swedish sports carmaker pulls out of deal with GM to purchase Saab

11:33, November 25, 2009      

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U.S. automaker General Motors Co.'s efforts to sell cast-off brands took another hit Tuesday when Swedish sports car maker Koenigsegg Group AB pulled out of deal with GM for purchasing Saab for undisclosed reasons.

"We're obviously very disappointed with the decision to pull out of the Saab purchase," GM President and CEO Fritz Henderson said in a short statement.

"Many have worked tirelessly over the past several months to create a sustainable plan for the future of Saab by selling the brand and its manufacturing interests to Koenigsegg Group AB," Henderson said.

"Given the sudden change in direction, we will take the next several days to assess the situation and will advise on the next steps next week," he added.

It is reported that the decision of the Swedish company to pullout of the deal was purely due to the timing.

The move comes less than two months after Detroit auto tycoon Roger Penske terminated a deal to buy GM's Saturn brand after his prospective provider of new vehicles pulled out.

Saab sales have plummeted this year. It sold 7,441 vehicles in the first ten months of this year in the United States, down 61.5percent from a year earlier.

Source: Xinhua
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