Buyer pulls out of GM's Saab sale deal, Opel future unclear

Like a row of skittles, General Motors’ selloff plans keep falling over.

The latest deal to collapse is the sale its Swedish unit, Saab, which was to have been bought by boutique Scandanavian sports car maker Koenigsegg Group.

But Koenigsegg has now pulled the plug on the deal. Owner Christian von Koenigsegg said the financing was available but that the complexity of the deal made it impossible to conclude it in the time needed to turn Saab around.

GM’s selloff plans were made earlier this year as part of a major restructuring plan and injection of US government funds, aided by other governments in Europe.

But none of these deals has gone ahead.

Attempts to sell the Saturn brand to dealer Penske Automotive Group  in the US also failed and the GM board reneged on plans to sell control of its Opel-Vauxhall division in Europe, saying it was a key part of its global business.

The GM board would make further decisions on Saab’s future at a meeting next week, CEO Fred Henderson said when confirming the deal was off.

The Swedish government has committed substantial funds to keep Saab's production plants open.

GM is also holding its hands out to other European governments to help save jobs at Opel and Vauxhall.

Speaking in Germany, GM Europe head Nick Reilly said there were no plans to close the Opel factory in Bochum.

"Bochum remains an important part of the resources of General Motors in Europe going forward," Mr Reilly said after meeting the state government.

He did not give further details of the restructuring plan, saying only it "will be released relatively shortly."

But billions from European taxpayers remains crucial to that plan. Mr Reilly said it would be "quite difficult" for GM to come up with much of the funding because of restructuring costs in the US.

"We are looking for the support of any government that feels willing to be able to provide us some financing support in the medium term," he said.

On a brighter note, GM says the sale of its Hummer unit unit to China's Sichuan Tengzhong Heavy Industrial Machinery is still going ahead.