Koenigsegg Ends Talks to Buy Saab; GM May Shut Unit: Video

The sale is tied to a $600-million loan by the European Investment Bank that's backed by the Swedish government, General Motors says.

Swedish luxury carmaker Koenigsegg said Tuesday it was giving up its bid to acquire Saab Automobile from its US parent company General Motors."We regret that after six months of intense and goal-oriented work we have come to the painful and difficult conclusion that we are not going to be able to carry out the acquisition of Saab Automobile," the head of the company, Christian von Koenigsegg, said in a statement.Koenigsegg announced in September that it had teamed up with Beijing Automotive Industry Holding Co Ltd (BAIC) to buy Saab from GM.