Bankrupt US automaker GM nears deal to sell Saab division

• Source: xinhua
• [09:04 June 15 2009]
• Comments

The largest US automaker General Motors Corp., which filed for bankruptcy protection on June 1, is nearing a deal to sell its Saab division as part of a broad restructuring plan, the Detroit News reported on Friday.

The likely Saab buyer is luxury sports car maker Koenigsegg Automotive AB and Norwegian investors.

The deal would be the latest in a flurry of moves by GM to shed unwanted assets and cut costs after filing Chapter 11 bankruptcy on June 1. Along with the brand deals, GM on Monday announced it would drop its medium-duty truck business.

According to the report, Koenigsegg and the investors had signed a declaration of intent to buy Saab, which filed for reorganization in February in the Swedish equivalent of a Chapter 11 bankruptcy.

GM previously said it is in discussions with three parties about buying the brand. The other suitors reportedly are the Renco Group Inc., a private equity firm, and Merbanco Inc., a Wyoming-based group of investors. Saab has never identified the interested parties.

GM is shedding brands, including Pontiac, so it can focus on four core brands: Chevrolet, Cadillac, Buick and GMC.

Meanwhile, GM started notifying dealers on Thursday that it has suspended production of the Chevrolet Malibu hybrid because of poor sales, a move that comes as the automaker continues to work on a next-generation hybrid system set for 2010.