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Auto Industry

'Saab to Be Shut Down'

Published måndag 11 januari 2010 kl 16.15
GM CEO Ed Whitacre in Detroit

Updated 17:11

The winding down of ailing Swedish car brand Saab has become more likely on Monday afternoon. US auto giant General Motors’ CEO Ed Whitacre told reporters on the sidelines of the Detroit auto show that none of the bidders for Saab had submitted an offer that would prompt GM to reverse a decision to shut down the Swedish brand.

According to the news agency Reuters, GM Vice Chairman Bob Lutz said that the US automaker would press ahead with closing down Saab unless a new bid emerged that was "financially better for us than the wind-down."

“The offers we've received so far in terms of risk and financing up-front just have been as good as winding it down," Lutz told reporters.

These announcements come as Swedish politicians are in Detroit to negotiate with GM over Saab’s future.

Since GM took over Saab in 1989, the Swedish company has been consistently unprofitable. Dutch luxury carmaker Spyker last week said it had submitted an improved bid for Saab. On 18 December, GM announced for the first time that it would shut down its Swedish brand in the western Swedish city of Trollhättan where 3,400 people are employed.

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