GM will not support Saab’s newest investment and loan proposals

Article by Christian Andrei, on December 19, 2011

Right before the Swedish court hearing this Monday that would decide Saab’s fate, General Motors has said that it won’t support the newest investment and loan proposals to enable Saab to survive and stay in business. GM has rejected suggestions that Saab didn’t need its consent for several of the latest proposals.

In a statement released last Saturday, GM spokesman Jim Cain said that there is no meaningful difference between the new alternative proposals and those that GM had already rejected.

Cain said that all the proposals would directly or indirectly result to the transfer of control and/or ownership of the company in a way that would have an adverse impact on GM and its shareholders. Last Tuesday, Saab that it had gotten a first payment from China-based Zhejiang Youngman Lotus Automobile, which seeks to acquire a stake in Saab.

According to media reports, the $5 million payment is intended to pay off immediate tax expenses.

However, additional funding is needed so that the workers and the suppliers would be paid and production could then resume. In addition, Saab has been meeting with a Chinese bank to secure loans amounting to around 600 million euros ($803 million).

In an interview that Swedish daily Svenska Dagbladet had with Swedish Automobile CEO Victor Muller, he said that GM doesn’t have a say on a plan that wouldn’t give Youngman any part of Saab’s shares. Muller added that GM’s statements are based on rumors and could be interpreted as an attempt to negatively influence the court hearing this Monday.

Topics: gm, saab

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