Another GM Deal, Another Buyer Walks

For the second time in a little more than two months, General Motors’ plans to offload an underperforming brand have fallen through, and largest automaker in the U.S. is faced with shutting down another line.

Koenigsegg Group AB, a Swedish maker of specialty autos, says it’s backing out of a deal to buy GM’s Swedish brand, Saab. Koenigsegg pulled out of the purchase after delays in closing on the deal for the money-losing unit.

It was the second time in as many months that GM has lost a buyer for one of its underperforming unit, and the third time a planned sale of a GM unit has fallen through. The GM board is expected to decide within a week whether to continue to try to find a buyer for Saab, or shut the unit down.

There was no such grace period in October when Penske Automotive of Bloomfield Hills, Michigan, decided to back away from a deal to buy GM’s Saturn brand. Then, GM announced immediately that it would close Saturn down.

Three weeks ago, GM backed out of a deal to sell its Opel Vauxhaul brand to a group led by Canadian parts maker Vauxhaul.

Another sale of a GM brand is still awaiting a government approval. Hummer, the builder of road behemoths that symbolized American excess in the 1990s, is being sold to obscure Chinese construction-equipment manufacturer Sichuan Tengzhong Industrial Machinery for $100 million, assuming the Chinese government approves the deal.

GM’s initial plans coming out of bankruptcy this summer had been to focus its energies on the core Chevrolet, Buick, GMC and Cadillac brands. Now, it’s closing the Pontiac brand, with its tradition of muscle cars. A decision on Saab is expected within a week. It’s keeping Opel, for now, and closing Saturn.