General Motors has said it will shut down its Swedish car brand Saab after talks failed to produce a buyer for the loss-making division.
GM said it had failed to reach an agreement with Dutch sports car maker Spyker on a sale of Saab, following the withdrawal of a bid last month from Sweden's Koenigsegg Group.
GM Europe president Nick Reilly said it would work closely with the Saab organisation to wind down the business 'in an orderly and responsible manner'.
GM said the move to end Saab operations was among 'some very difficult but necessary business decisions' as the new US car giant tries to restore profitability after a massive bankruptcy restructuring aided by the US and Canadian governments.
The company has decided to end its Saturn and Pontiac brands in the US and has reached a deal to sell its Hummer brand to a Chinese buyer.
Earlier this week, GM agreed to sell some Saab assets to China's Beijing Automotive Industry Holding Co. State-owned BAIC will acquire the technology for Saab's 9-3 and 9-5 car models, turbine engines and gearboxes, allowing the Chinese firm to develop its own-brand cars using the Swedish car maker's technology.
GM said that in the wind-down of Saab, it would satisfy debts including supplier payments and would continue to honour warranties and provide parts to Saab owners around the world. Saab employs around 3,400 people in Sweden and sold just over 93,000 cars worldwide in 2008.
