GM continues to oppose Saab sale to Chinese investors

Article by Christian Andrei, on December 7, 2011

Even with the revisions cited in the past few days for the sale of Saab to investors in China, General Motors still opposes the deal. In a statement last Tuesday, GM said that it has studied the changes proposed for the sale but that its position is unchanged and that it simply can’t be in support of the sale. The Chinese investor Pang Da Automobile Trade Co. had said earlier that talks will continue with Saab as well as the other parties with regards to plans to invest in the Swedish carmaker.

Swedish Automobile, the current owner of Saab, said last Monday that it is in talks with a Chinese bank and Zhejiang Youngman Lotus Automobile about Saab getting a new ownership structure.

However, it didn’t say if Pang Da was still involved. Last Sunday, a report by Reuters indicated that Pang Da has been replaced by a Chinese bank in the rescue deal. This agreement is expected to lead to the approval of GM, which continues to have preferential shares in Saab. But then, this latest report dashes all hope of GM accepting the deal.

In a statement posted last Monday on the Shanghai stock exchange, Pang Da said that it won’t oppose a plan that benefits Saab's restructuring and helps it out of its present problems.

Last November, GM said that it will halt supplying parts and technology if Youngman and Pang Da are successful at their bid to purchase Saab. GM is worried that its technology will fall into the hands of its rivals. GM has a partnership with state-run SAIC Motor Corp. in China. The automaker added that it would be hard to support a sale of Saab that is detrimental to GM's competitive position in China and as well as other major markets.

Topics: gm, saab, china

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