RIP Saab Automobile, 1947 -2010 Options

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USA Today news article

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DETROIT — General Motors said Friday that it will close its Saab line after talks to sell the brand to Dutch carmaker Spyker fell apart Friday morning.

During meetings Friday in Sweden with Spyker and the Swedish government, GM and Spyker realized there were issues that could not be settled by GM's Dec. 3 deadline to close the deal.

"No amount of time was going to resolve that," said John Smith, vice president of corporate planning and alliances for GM, on a conference call with reporters. a conference call with reporters

The company will begin winding down the brand immediately, eliminating 3,400 jobs worldwide and affecting 1,100 dealers

"Despite the best efforts of all involved, it has become very clear that the due diligence required to complete this complex transaction could not be executed in a reasonable time," GM Europe President Nick Reilly said. "In order to maintain operations, Saab needed a quick resolution."

GM said it will continue to honor Saab customer warranties

This is the second brand GM has decided to close following failed attempts to find a buyer. Saturn, once a gem in GM's lineup, will close after a deal with Penske Automotive fell through.

An attempt to sell Saab to a consortium led by Swedish sports carmaker Koenigsegg failed in November. GM turned to Spyker after Koenigsegg withdrew from talks.

Once known as innovative, Saab was first to have factory-installed seat belts in 1958, first to offer headlamp washers and wipers in 1970, and first to offer ventilated seats in 1998. Even the quirky, console-mounted starter was an innovation intended to protect drivers' knees from key-ring injuries in a collision.

GM first sought a buyer for Saab in January as part of its restructuring, which included plans to downsize from eight to four brands

Speculation has been rampant on Saab's future. Earlier this week, GM Chairman and CEO Ed Whitacre told reporters he had "a sense it's possible" that the sale to Spyker would go through, but conceded the brand would close by the end of the year if talks fell apart It is unclear how this annoucement will affect negotiations with Beijing Autos, which said earlier Friday that it wants to explore further cooperation with Saab Automobile on projects such as "new energy vehicles," after earlier announcing the purchase of car and engine technology from the struggling brand

The state-owned company announced Monday that it had agreed to buy some powertrain technology for Saab's 9-5 and 9-3 sedans, including engine and gearbox knowhow.

Beijing Autos' sales are expected to pass 1.2 million vehicles this year

Beijing Autos, founded as Beijing Auto Works in 1958, was the first Chinese carmaker to team up with a foreign partner, setting up its Beijing Jeep joint venture with American Motors in 1983 Contributing: Associated Press