Last minute reprieve or execution?

When the proposed sale of GM’s money losing Saab brand to Koenigsegg fell apart last week when the tiny company was unable to come up with the needed financing, GM insiders told TDB that unless an angel magically appeared, it was likely the GM Board would back up CEO Fritz Henderson’s oft stated position that no more money would be forthcoming to support the ailing brand.

General Motors had signed a memorandum of understanding last August to sell Saab Automobile AB to Koenigsegg, but without all of the needed financing in place. The Swedish government then refused to lend money to Koenigsegg.

At the time, Koenigsegg said it needed another $425 million to make the proposed business plan work. The business plan developed by Koenigsegg was never revealed, but it was critical for the deal to move forward.

Well, the decision on Saab’s fate has been made by the GM Board of Directors and it will be announced less than one hour from now.

Stay tuned…