General Motors has not been able to find a buyer for the Saab car brand, following the collapse of a proposed deal to sell it to Dutch car maker Spyker Cars.
Issues failed to be resolved during talks, so Saab will be gradually wound down, said GM.
GM 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."
GM first sought a buyer for Saab in January as part of its restructuring, which included plans to downsize its brands to four from eight. It was previously in talks to sell Saab to a consortium led by the Swedish sports car maker Koenigsegg, but it turned to Spyker after Koenigsegg withdrew from the talks in November.
Speculation has since been rampant on the future of Saab. Earlier this week, GM Chairman Ed Whitacre told reporters he had "a sense it's possible" that the sale to Spyker would go through, but conceded the brand would close by the end of the year if the talks fell apart.
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