DETROIT, Dec. 18 (UPI) -- General Motors Co. said Friday attempting to sell Swedish automaker Saab was a lost cause and it would discontinue the brand and wind down the company.
The announcement was half expected. Earlier this week, GM Chairman Ed Whitacre Jr. said GM would shutter Saab if it could not agree to a sale to Spyker Cars N.V.
GM Europe President Nick Reilly said the company terminated talks with Spyker and "needed a quick resolution," for the struggling Swedish auto company, The Detroit News reported.
Without furnishing details on why talks ended, "it's best to recognize a point of impasse -- recognize it, deal with it and move on," said John Smith, GM vice president, corporate planning and alliances.
The end of Saab means the end of about 3,400 jobs, plus a negative impact on about 1,100 dealerships.
Most of the Saab dealerships are in Europe. About 218 are in the United States.
Reilly said Saab was not declaring bankruptcy. As such, "we expect Saab to satisfy debts, including supplier payments, and to wind down production and the distribution channel in an orderly manner while looking after our customers," he said.
