GM Unable to Sell SAAB, Leaning towards Closing Brand Next Week (F, GELYY)

After talks with a Swedish company, Koenigsegg collapsed on the sale of their smaller subsidiary Saab, General Motors is looking to decide the fate of the Car brand next week. Saab is one of the least performing brands for GM with only 93,000 vehicle sold last year.

Prior to the interest, General Motors was looking to close out the brand. This is also the second deal to fall through as the Penske backed out of the deal for the sale of GM’s Saturn brand. After the deal for Saturn Broke down, all dealerships and manufacturers of Saturn were closed down.

While the other companies backed out of the deal with GM, GM was the one to back out of the sale of Adam Opel to a Canadian parts manufacturer and a Russian Bank. In addition, GM is experiencing delays in selling their Hummer Brand to a Chinese Industrial Machinery Manufacturer as the Chinese government delays approving the transaction.

These broken deals however cannot be pinned on the performance of the General Motor’s management but the sorry state of the car manufacturing industry. Ford Motors (NYSE: F) took almost a year before entering exclusive talks with Geely (PINK: GELYY) , a Chinese Car Manufacturer, in the previous month. Volvo is a stronger brand than either Saturn or Saab and as such would find very little interest even in a good economic climate.