Saab Deal Falls Through; Frank Myers Auto Will Continue To Sell & Service Niche Brand

Winston Salem, NC - The Saab Automobile unit, owned by General Motors, could be closed soon after the Swedish company that planned to buy the brand has backed out.

It was the third time in less than two months that a sale of a G.M. brand has been called off, reflecting the difficulty of selling underperforming divisions in the midst of a global sales slump.

On Tuesday, the G.M. board said that it planned to determine next week what to do with Saab. Closing the brand, as G.M. initially planned to do if it could not find a buyer, is a strong possibility, two people with direct knowledge of the company’s plans said. The people spoke on condition of anonymity because the board had not made its decision.

The other options for G.M. are to seek another buyer or keep Saab, though both those steps are considered less likely.

When Penske Automotive terminated its deal to buy Saturn in September, G.M. immediately announced that the brand and its dealerships would close.

Officials at G.M, who were caught off-guard by the deal’s collapse, denied responsibility. “We negotiated in good faith and we met all our timing obligations under the agreement,” a G.M. spokeswoman, Renee Rashid-Merem, said.

“We’re obviously very disappointed with the decision to pull out of the Saab purchase,” G.M.’s chief executive, Fritz Henderson, said in a statement.

Tracy Myers, owner of Frank Myers Auto Maxx (a used car dealer in Winston-Salem), said he wasn't really surprised of the news. "Sadly, this deal gone wrong seems to be a pattern that is developing with G.M. and their brands. However, my dealership will continue to sell and service the Sabb brand for as long as our customers continue to demand it."

Myers added, "I would like to invite any Saab drivers in Winston Salem, Greensboro, High Point or Kernersville to bring their vehicle to our service department for a free service inspection. We are located at 4200 North Patterson Avenue and you can call our Service Director, Robert Thomas, by calling (336) 831-0656."