AUTO INDUSTRY: Sweden and GM paving the way to Saab's impending bankruptcy

While many in Sweden had hoped emblematic carmaker Saab could be sold to a new owner, General Motors' decision to close its money-losing brand was no surprise, Swedish editorialists agreed Saturday.GM said in a statement Friday it would wind down Saab Automobile after failing to reach agreement with Dutch sports car maker Spyker on a sale of the division, just three weeks after another luxury car maker, Koenigsegg of Sweden, withdrew its bid for Saab.

General Motors said Friday it had begun "an orderly wind down" of its Swedish unit Saab, but would continue to review any late proposals to buy the brand.GM said it hired the consulting firm AlixPartners "to supervise the orderly wind-down of Saab, and has requested approval of the selection by the appropriate authority in Sweden."The US auto giant, in the process of a massive restructuring after bankruptcy last year, said the process for Saab "is expected to take several months, and will ensure that employees, dealers and suppliers are adequately protected."

Swedish carmaker Saab -- whose US owner GM has received several bids for the loss-making brand -- was placed in liquidation on Friday, the head of Sweden's main industrial union said."Today, Saab Automobile's board has decided on the liquidation of the company," said Stefan Loefven, the head of the IF Metall union which has a representative on Saab's board."GM is taking an additional step in the winding up of Saab," he added.

General Motors said on Tuesday it had inked a conditional deal to sell Saab Automobile to luxury carmaker Koenigsegg, the first in a series of big deals the U.S. group is eyeing as it emerges from bankruptcy protection.

Swedish luxury carmaker Koenigsegg said Tuesday it was giving up its bid to acquire Saab from its US parent company General Motors, saying costly delays made the deal too uncertain.

Troubled Swedish carmaker Saab was put into liquidation on Friday, despite its US owner GM having receiving several bids for the loss-making brand. Sweden's main industrial union called GM's attitude "irresponsible".

Sweden is bracing for the end of an era as General Motors' failed bid to sell iconic carmaker Saab means the Swedish group will likely close, leaving thousands of layoffs in its wake unless a Chinese rescuer steps in to save the day.Koenigsegg, a niche sportscar maker that rolls out 18 luxury cars a year, stunned the automotive industry Tuesday when it announced it was abandoning its bid to buy Saab from its US parent GM, citing costly bureaucratic delays in the takeover process.

US auto giant General Motors will not consider Dutch sportscar maker Spyker's renewed bid for Saab and is planning to shut down the Swedish brand, a Swedish newspaper reported Thursday."Saab's board had a short meeting yesterday. GM representatives were on the phone from the US. And the discussions were entirely about the shutting down Saab -- not about the new bid," wrote daily Svenska Dagbladet (SVD).GM announced last week it would wind down its loss-making Swedish unit Saab after breaking off sales talks with Spyker.