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STOCKHOLM (AFP)--U.S. auto giant General Motors Co. won't consider Dutch sportscar maker Spyker Cars NV's (SPYKR.AE) renewed bid for Saab and is planning to shut the Swedish brand, a Swedish newspaper reported Wednesday.
"Saab's board had a short meeting yesterday. GM representatives were on the phone from the U.S. And the discussions were entirely about the shutting down Saab--not about the new bid," wrote daily Svenska Dagbladet.
GM announced last week it would wind down its loss-making Swedish unit Saab after breaking off sales talks with Spyker. But the Dutch company then made a last-ditch bid for the iconic brand, which it extended indefinitely hours before it was due to expire Monday.
"The word [at the meeting] was to shut down Saab and that is what we have started working on," Haakan Danielsson of Sweden's engineering union told SVD. Danielsson was at the meeting and told the newspaper he estimated the wind down of Saab could take many years.
Spyker's new bid was received with scepticism in Sweden, and the government went ahead with preparing for a Saab closure despite the news of Spyker's second attempt to take over the brand.
On Monday, Enterprise Minister Maud Olofsson vowed to help Saab's employees and home region, announcing public funding of 542 million kronor ($75 million) to create jobs and growth.
Matts Carlsson, one of Sweden's most respected auto industry analysts, meanwhile told Swedish radio that GM was probably not interested in selling Saab at all, suggesting the U.S. carmaker would rather shut down Saab because of fears over future competition.
But Danielsson told SVD: "GM wants to sell Saab...it is of course better to have money come in than pay the costs associated with shutting down.
"But it is dragging on and it is going to take more time before everything is ready" for the deal to be completed, he said.
Spyker chief executive Victor Muller told SVD Tuesday he was "working under a very difficult timeline" to reach a deal with GM.
The troubled U.S. carmaker set Dec. 31 as the limit for a potential sale or wind down.
(END) Dow Jones Newswires
December 24, 2009 08:29 ET (13:29 GMT)
, Thu, 24 Dec 2009 07:49:59, Thu, 24 Dec 2009 13:53:27
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