GM might block Saab sale to China’s Pang Da and Youngman

Article by Christian Andrei, on November 6, 2011

General Motors Co., the former owner of Saab, believes that it would be hard to support a Saab sale if it will harm its current tie-ups in China or its competitiveness in other markets. In what is considered to be a rescue strategy, a deal had been entered by China's Pang Da Automobile Trade Co. and Zhejiang Youngman Lotus Automobile to purchase Saab from its present Dutch owner, Swedish Automobile. Swedish Automobile, formerly called Spyker, had saved Saab from being shut down by former owner General Motors in early 2010.

GM continues to have preference shares in Saab and is a major supplier of vehicle parts. That’s why the approval of GM is required for the Pang Da and Youngman takeover.

GM spokesman Jim Cain said that GM won’t be able to support a change in Saab’s ownership. This could have a negative effect on GM’s current relationships in China. It may also have an impact on GM's interests globally. In the past year, Saab has experienced one crisis after another.

In addition, it hasn’t built a car in months. Last September, the company received court protection from creditors in Sweden.This is the second time that Saab had gotten protection from creditors in two years. If Pang Da and Youngman complete a deal to purchase and rescue Saab, it would be the second time that a Chinese company will acquire a Swedish auto brand that had once been owned by a Detroit car company. [source: DetNews]

Topics: gm, saab

If you liked the article, share on:

Comments

Login or Create new account to add a comment!

Recommended

Nearly a decade after Opel and sister brand Vauxhall introduced the Insignia large family car, these companies are now getting ready to unveil the second generation of this offering from...
by - December 7, 2016
After we caught a glimpse of the revamped Amarok, VW Australia once again wants to give its ute a sinister look inspired by the Mad Max movie franchise. The “Korama”...
by - December 7, 2016
Customers in the European market are known for leaning towards style and with this in mind, Nissan has revealed the special LEAF Black Edition. While the production run of this...
by - December 7, 2016
When Volkswagen unveiled the VW Atlas, it declared that this SUV is being developed for the United States and is set to arrive as a 2018 model. It also unveiled...
by - December 7, 2016
Did you miss the opportunity to get a brand new Dodge Viper? Well, here’s something you don’t want to miss. Dodge has announced a “final call” for orders for its...
by - December 6, 2016
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