Deadline set for Saab

Almost lost amid the dramatic resignation of CEO Fritz Henderson, General Motors has announced it will decide the fate of Saab by the end of December. And although it revealed it has bids for the beleaguered brand it may opt to shut Saab down.

GM's announcement came after meetings in Detroit with Saab CEO Ake Jonsson and Swedish government officials and a board meeting on Tuesday.

"The GM Board of Directors has received expressions of interest in Saab since the conclusion of negotiations with Koenigsegg Group AB," read the GM statement. "The Board will evaluate potential bids between now and the end of December.  At that time, we will determine whether a suitable arrangement for Saab exists.  If not, we will begin an orderly wind down of the global Saab business at that time.

"Due to non-disclosure agreements, we will not confirm or comment on any potential transactions or other matters unless, and until, we determine that disclosure is appropriate."

Since Koenigsegg announced its decision to pull out of its planned takeover , reports have emerged linking China's Beijing Automotive (BAIC), private equity firm Renco Group and US-based bank Merbanco with possible bids to save Saab.

If none of the bidders are successful, Saab will join Oldsmobile, Pontiac and Saturn as defunct GM brands; the latter two both folding in 2009. GM has managed to successfully sell off Hummer but backed out of plans to off-load European brands, Opel and Vauxhall.

The uncertainty over the brand's future has hit hard in the showroom. Saab recorded only six sales in Australia throughout November, bringing the year-to-date total to just 653.

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