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

Article by Christian A., 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

If you liked the article, share on:

Pin It

Comments

Recommended

Lamborghini has disclosed that it is looking into the possibility of releasing electric vehicles. With the Volkswagen Group revealing that it will be releasing electric vehicles within several years, there...
by - March 25, 2017
Daimler AG, through its Smart division, has disclosed that its two electric models, the Smart ForTwo and the Smart ForFour are now open for orders in Germany. Official market launch...
by - March 25, 2017
Lamborghini has officially offered clear proof that the Huracán Performante was able to set a new record at the Nürburgring Nordschleife with a time of 6:52.01 It was in early...
by - March 25, 2017
Top Gear has revealed that for its “Stars in a Reasonably Fast Car” segment, it will now be using a slightly enhanced Toyota GT86, which in the U.S. market is...
by - March 24, 2017
Porsche is laying aside any plans of pushing another hybrid hypercar into their line-up -- at least not at this time. Oliver Blume, Porsche Global Chief confirmed in a recent...
by - March 24, 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