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Tale of Two Brands: Saab Deal Finalized, Hummer Shut Down

February 24, 2010

DETROIT — Wednesday marked the beginning of a new chapter for one General Motors-controlled brand and the end of the line for another. Early in the day, the manufacturer confirmed that the deal to sell Saab Automobile AB to Trollhättan, Sweden-based Spyker Cars N.V. had been finalized. That announcement was followed by news that the Hummer brand will be retired after it became clear that China's Sichuan Tengzhong Heavy Industrial Machines Co. Ltd. would be unable to complete its planned acquisition.

The Saab deal was completed after several months of talks. Spyker’s parent company, Amsterdam Euronext, will operate Saab Automobile and Spyker Cars as sister companies.

“This transaction represents the successful outcome of months of hard work and intense negotiations, all aimed at securing a sustainable future for this unique brand, and we are pleased with the positive outcome,” said John Smith, GM vice president for corporate planning and alliances. “This is a great day for Saab employees, dealers and suppliers, and a great day for millions of Saab customers and fans worldwide.”

Hummer becomes the third GM brand to close since the company entered bankruptcy protection last year. The manufacturer previously announced that the Saturn and Pontiac marques would be retired as the company restructured to focus on the Chevrolet, Buick, GMC and Cadillac brands.

Smith was unable to offer details on the failure of the sale of Hummer, but assured owners of the large SUVs that warranties would be honored and service, support and spare parts would still be available going forward.

“We are disappointed that the deal with Tengzhong could not be completed," Smith said. “GM will now work closely with Hummer employees, dealers and suppliers to wind down the business in an orderly and responsible manner.”

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