GM decided to sever its ties to Saab

Article by Christian A., on November 8, 2011

The risks related to the pending sale of Saab to Chinese owners have prompted General Motors to cut ties to Saab and to withdraw from its pledge to supply it with vehicle parts and the 9-4X model. GM spokesman Jim Cain said that even if GM is open to the idea of continuing to supply powertrains and other parts to Saab, it won’t agree to the continuation of the current technology licenses or the continued supply of 9-4X vehicles to Saab.

Cain explained that it won’t be in the best interests of GM shareholders if the ownership changes.

With this statement, it’s apparent that GM is hardening its opposition to the proposed rescue plan for Saab. It also may indicate that the brand is more likely to survive. Last Friday, GM said that it will be hard to support a Saab sale if it damaged GM's competitiveness in China and other major markets.

A deal has been entered by China's Pang Da Automobile Trade Co (601258.SS) and Zhejiang Youngman Lotus Automobile to purchase Saab from its existing Dutch owner, Swedish Automobile (SWAN.AS).

This could very well be a rescue plan for Saab, the Swedish auto brand that was formerly owned by GM. The approval of GM is needed for the Pang Da and Youngman takeover since it controls preference shares in Saab and is a major supplier of vehicle components.

Saab Automobile CEO Victor Muller said that the deal for Saab will be revised after objections from GM. In the past year, Saab has faced many crises. It hasn’t built a car in months. Last September, Saab was granted court protection from its creditors in Sweden. This is the second time that Saab was given protection from creditors in two years. [source: EconomicTimes]

Topics: gm, saab

If you liked the article, share on:

Comments

Recommended

J.D. Power has officially released the 2017 Vehicle Dependability Study, an annual list of the most dependable brands in the auto industry. Once again coming on top is Lexus, the...
by - February 26, 2017
Citroen revealed that its entry to the Chinese market is moving forward with the planned release of the new generation C5. While still on sale on this part of the...
by - February 26, 2017
There is definitely a second-generation Super Series from McLaren. Even in camouflaged form, it is simply incredible. But while we still don’t have the full data on how truly dynamic...
by - February 25, 2017
A lot of fans are excited with the news that Porsche could be unveiling a performance version of its Panamera 4 E-Hybrid plug-in hybrid during the 2017 Geneva Auto Show. ...
by - February 25, 2017
Tesla is finally setting a more “definite” schedule with regards to the official launch of the Tesla Model 3 electric car. A “limited production” is said to be slated to...
by - February 25, 2017
Facebook

Youtube Channel

Tip Us
Do you have a tip for us?
Did you film an important event?
Contact us
Newsletter
Subscribe to our newsletter!
Subscribe
Galleries