Looks like its bad news after all for Swedish brand Saab. Just moments ago General Motors, parent company of the brand officially announced that it will gradually shut down Saab, following a breakdown in the negotiations with Spyker. Apparently certain issues arose that both parties believe could not be resolved.

Saab’s sale was previously linked with Koenigsegg but that didn’t go anywhere as well. General Motors then reiterated that it will shut down the brand if it is not sold by end of 2009. Spyker then showed interest and negotiations started but the result is nothing positive.

General Motors’ Europe President Nick Reilly said, “Despite the best efforts of all involved, it has become very clear that the due diligence required to complete this complex transaction could not be executed in a reasonable time. In order to maintain operations, Saab needed a quick resolution.”

“We regret that we were not able to complete this transaction with Spyker Cars. We will work closely with the Saab organization to wind down the business in an orderly and responsible manner. This is not a bankruptcy or forced liquidation process. Consequently, we expect Saab to satisfy debts including supplier payments, and to wind down production and the distribution channel in an orderly manner while looking after our customers,” he added.

The American auto giant assured that it will continue to honor warranties, while providing service and spare parts to current Saab owners around the world. Saab recently sold certain Saab 9-3, current 9-5 and powertrain technology and tooling to BAIC (Beijing Automotive Industry Holdings). General Motors also reiterated that it will concerntrate on its core brands including Buick, Cadillac, Chevrolet and GMC as well as Opel / Vauxhall in Europe.