GM rejects claims made in the $3 billion lawsuit filed by Spyker

Article by Christian Andrei, on October 1, 2012

General Motors filed a response in the U.S. District Court for the Eastern District of Michigan to reject claims made by Saab's parent that GM intentionally bankrupted the Swedish company by obstructing a deal with a Chinese investor. The lawsuit is valued at $3 billion. GM replied that it held the legal right to grant Saab's transaction with China's Zhejiang Youngman Lotus Automobile Co.

In the filings, GM said that the core of the complaint is that GM didn’t approve the transaction plaintiffs had suggested to go into into with Youngman. However, the pertinent contracts did not allow Saab to consummate the proposal without GM's consent. GM had already indicated previously that this lawsuit, which was filed by Saab parent Spyker last month, didn’t have merit.

Saab, which is one of the most famous brands in Sweden, halted production in May 2011 when it couldn’t anymore pay its workers and suppliers. It became bankrupt in December, less than two years after Dutch sportscar maker Spyker bought it from GM. The U.S. automaker’s moves to put a stop to any sale were done to eradicate a possible competitor in China, Spyker revealed in the lawsuit.

Back then, Spyker Chief Executive Victor Muller said that GM “had it coming” with regards to the lawsuit. Spyker wants to get a minimum of $3 billion in compensatory damages, aside from interest and punitive damages, and legal fees.

Muller had made attempts for several months to bring about a rescue agreement with different Russian, Middle Eastern and Chinese investors, Youngman and Pang Da Automobile Trade Co Ltd. Muller said that an anonymous third party, who will get a share in the settlement, is funding the lawsuit.

Topics: gm, spyker, lawsuit

If you liked the article, share on:


Login or Create new account to add a comment!


Honda has unveiled the fifth generation of its hot-selling SUV – the 2017 Honda CR-V. The latest iteration of the CR-V should help it maintain its benchmark status in the...
by - October 21, 2016
Many are already expecting BMW to launch an ultra luxurious SUV that will serve at its new flagship by late 2018. Larger than the X5 and X6, the new X7...
by - October 21, 2016
Most of you may have heard or already have one of those autonomous home appliances doing the house chores. Thus, it’s not anymore unusual to see a car going places...
by - October 20, 2016
Mini has just provided the world with a preview of its first hybrid model that employs petrol-electric power to propel its wheels. Derived from the second generation of the Mini...
by - October 20, 2016
For the second time in three years, German driver Marco Wittmann of BMW Team RMG reached the summit in the DTM Drivers’ Championship. Even though Wittmann only secured a fourth...
by - October 20, 2016