Even though General Motors made a deal with Beijing Automotive Industry Holding earlier this month, the Detroit based automotive company will shut down Saab, a Sweden based subsidiary. The decision was finalized even though Spyker made a renewed bid for Saab.

“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,” stated Svenska Dagbladet (SVD). “The word (at the meeting) was to shut down Saab and that is what we have started working on.” Shutting down the brand could take several years. Sweden Enterprise Minister Maud Olofsson said that they plan to help Saab’s employees by providing them with public funding of 542 million kronor ($72 million).

Beijing Automotive Industry Holding has struck a tentative agreement to produce several models of Saab vehicles. Beijing Automotive will be allowed to make older versions of the Saab 9-3 and 9-5 in China. Beijing Automotive will not be allowed to prevent any separate deal that General Motors decides to make for Saab.

However the employment possibilities of 3,500 workers in Sweden is still a big question mark. GM was close to selling Saab to Koenigsegg last month but the deal fell through. Beijing Automotive’s deal with Saab “would be good for Sweden, good for China and good for Saab,” according to a Saab spokesperson.

GM is still negotiating with other Saab buyers such as Renco and Spyker Cars. GM bought a majority of Saab for $600 million in 1990. Then bought the rest of the company for $125 million in 2000.