As part of its efforts to divest of its holdings in certain brands, General Motors Company entered into talks with Spyker Cars in 2010 to sell Saab Automobile AB. However, the deal fell through during the due diligence stage. GM and Spyker Cars raised issues that both sides were unable to take care of in order for the deal to push through. With the deal cancelled, GM had no choice but to wind down Saab’s operations instead.
Koenigsegg Group AB was first in line to acquire Saab, but the company backed out from the deal in July 2010. According to Nick Reilly, winding down was the only viable alternative as Saab’s situation needed to be resolved quickly.
This is to ensure that Saab can still continue operating. However, the issues that were brought up during the due diligence period with Spyker Cars were the sort that could not be resolved as quickly as the circumstances desired.
Reilly, however, quickly clarified that it was not a bankruptcy process as Saab is still considered to be in good financial standing. What they needed to do is to wind down on the Saab’s production and distribution while still continuing to honor obligations to both customers and creditors.
In addition, Saab’s warranties continue to be serviced by the company while also making available services and spare parts to existing global customers. The intended sale was supposed to be in line with GM’s attempts to downsize, and an earlier sale was closed to Beijiing Automotive Industry Holdings Co. Ltd. The sale involved Saab 9-3, Saab 9-5 and engine technology, as well as relevant tools. GM did not expect a backlash to this sale as a result of the failed negotiations with Spyker Cars.
When it is done with its restructuring, GM’s focus will turn to the four brands that comprise its core. These brands are Buick, Cadillac, Chevrolet and GMC. There will also be a focus on certain regional brands like Opel.
The goal for this restructuring is to make it possible for the company to allocate sufficient resources for development and marketing to its core brands. Based in Detroit, General Motors Company is one of the world’s largest and oldest car companies.
First established in 1908, the company now employs 209,000 people worldwide. 108 years after its founding, GMC has customers hailing from 140 nations. GMC also forged partnerships that enable it to maintain manufacturing facilities in 34 countries that supply its main brands: Buick, Cadillac, Chevrolet, GMC, GM Daewoo, Holden, Opel, Vauxhall, Wuling and Jiefang.