Koenigsegg pulls out of Saab deal

Saab's prospects are not looking good with Koenigsegg officially backing out of its planned takeover. General Motors made the announcement overnight which leaves the iconic Swedish brand hanging in the balance.

GM has said it will consider its options and make another announcement next week but without a new suitor emerging, Saab could be in danger of joining Pontiac, Oldsmobile and Saturn as defunct GM brands.

"We're obviously very disappointed with the decision to pull out of the Saab purchase," said GM President and CEO, Fritz Henderson.  "Many have worked tirelessly over the past several months to create a sustainable plan for the future of Saab by selling the brand and its manufacturing interests to Koenigsegg Group AB.

"Given the sudden change in direction, we will take the next several days to assess the situation and will advise on the next steps next week."

The news comes as a shock given Koenigsegg Group boss, Christian von Koenigsegg, has spoken publically about his confidence in restoring the brand to a competitive position again.

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