Swedish brand Saab is to stop producing cars after its parent company <?XML:NAMESPACE PREFIX = YGG /><YGG:ENTITY id=t2 ref="#to9vJNw43RGue9xXXWfsEA">General Motors</YGG:ENTITY> failed to agree a sale to the Dutch sports car maker Spyker.
GM had been in last-ditch talks over Saab's future after another high-performance car manufacturer, Koenigsegg of Sweden, withdrew its bid.
"In order to maintain operations, Saab needed a quick resolution," a spokesperson for GM said.
"We regret that we were not able to complete this transaction with Spyker Cars.
"We will work closely with the Saab organisation to wind down the business in an orderly and responsible manner.
"This is not a bankruptcy or forced liquidation process."
Saab, which started life as an aircraft manufacturer, began to produce its first models in 1949.
It enjoyed success in the 1980s, before being acquired by GM 20 years ago.
<YGG:ENTITY id=t3 ref="#to9vJNw43RGue9xXXWfsEA">General Motors</YGG:ENTITY>, which was hit hard by the global economic crisis, needed to either sell or close Saab as it struggled to become profitable again after a controlled bankruptcy.
"It is very dismal. Very sad news for all of the employees and it comes at the worst possible time," said Swedish enterprise minister Maud Olofsson.
According to media reports, a closure of Saab could lead to more than 8,000 job losses, including subcontractors and others whose jobs depend on the carmaker.
However, the enterprise minister reiterated the Swedish government's position that the state could not buy Saab, saying it had neither the knowledge nor money to own car companies.
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