Our Terms of Service and Privacy Policy have changed.

By continuing to use this site, you are agreeing to the new Privacy Policy and Terms of Service.

Saab may get a second life

by Catherine Tymkiw, producer and Peter Valdes-Dapena, senior writer

NEW YORK (CNNMoney.com) -- Don't close the coffin on Saab just yet.

Spyker, a Dutch maker of exotic cars, said Sunday that it had made a new offer to General Motors for the Swedish car brand.

GM announced on Friday that it would let the brand die after it had failed to reach a deal with potential buyers, including Spyker and Swedish carmaker Koenigsegg.

Early Sunday, Spyker Chief Executive Victor Muller said the company had submitted a proposal that addresses the issues that had hung up a deal.

"Despite our collective 11th-hour set-back, we are returning to the table with a renewed offer, that addresses every known issue brought to light during the initial negotiations and that has the full backing of the Saab management," Muller said in a statement.

"Our efforts are based on our passion for saving an iconic brand that we would be honored to shepherd, and the jobs and livelihoods of thousands of loyal Saab employees, suppliers and dealers around the world," he added.

Some 3,400 employees globally would be directly affected by Saab's closure, according to GM spokesman Chris Pruess.

In a statement on Sunday, GM said it had "received inquires from several parties" following Friday's announcement. The company added that it would "evaluate each inquiry."

Spyker's offer is set to expire Monday at 5 p.m. ET.

Saab has never been a big-selling car brand, but the recent global recession and news of the brand's possible demise have driven sales down to crisis levels. Saab's U.S. sales have fallen by more than half so far this year.

Sweden's other major automaker, Volvo, is currently owned by Ford (F, Fortune 500), which is in the process of selling it to the Chinese automaker Geely.

What went wrong

GM previously said that the potential deals with both Spyker and Koenigsegg fell through because of unspecified issues that arose during negotiations.

As of Friday, GM was still planning to sell some Saab 9-3 and 9-5 technologies to the Chinese automaker Beijing Automotive Industry Holdings Co. Ltd. That deal was announced last week.

GM has owned a major stake in the Swedish automaker since 1989 and took full ownership in 2000; Saab has been making cars since 1949. GM will now begin winding down Saab production, but warranties will continue to be honored, and spare parts will still be available, the company said.

In the past two decades, GM has made every effort to turn Saab into a profitable car brand, Smith said. But recent global economic problems were simply too much for the still-weak automaker to survive.

As part of its government-sponsored bankruptcy restructuring, GM planned to sell of or wind down four of the eight brands it recently operated.

Pontiac is being wound down; a deal to sell the Saturn brand to Penske Automotive fell through in September; and a deal to sell the Hummer SUV brand to Chinese heavy equipment maker Sichuan Tengzhong is awaiting government approvals.

GM's remaining brands are Chevrolet, Buick, GMC and Cadillac. To top of page

Find Your Next Car
Index Last Change % Change
Dow 16,790.19 13.76 0.08%
Nasdaq 4,748.36 -32.90 -0.69%
S&P 500 1,979.92 -7.13 -0.36%
Treasuries 2.04 -0.02 -1.02%
Data as of 3:05am ET
Company Price Change % Change
General Electric Co 27.29 0.47 1.75%
Bank of America Corp... 15.69 0.00 0.00%
Alcoa Inc 10.98 0.57 5.48%
Freeport-McMoRan Inc... 11.83 0.65 5.81%
Micron Technology In... 18.22 0.65 3.70%
Data as of Oct 6


Yum Brands, the fast food holding company behind KFC, Pizza Hut and Taco Bell, dove 16% during extended trading. More

Pepsi reported a $1.4 billion loss in its business in Venezuela during the company's third quarter. Its profits were down 73% from the same time a year ago. More

For years, Microsoft has said that its Surface tablets would replace traditional laptops, but Tuesday it announced its first ever laptop: the Surface Book. More

Smarties, a Halloween candy staple, have been around for 66 years. Three Millennial women are revolutionizing it. More

The city council of the District of Columbia is weighing a new proposal that would mandate up to 16 weeks of paid family leave for family bonding or a serious personal or family medical issue. More