Swedish Automobile struggles to save Saab deal as GM rejects Chinese buyout

Article by Christian Andrei, on November 9, 2011

Swedish Automobile, the owner of Saab, is doing what it could to save a rescue deal after General Motors Co. said that it will stop supplying components and technology if two Chinese companies succeed in acquiring Saab. According to Victor Muller, the CEO of Swedish Automobile, GM's opposition of the proposed rescue plan would mean that those who are part of the negotiations will have to return to the “drawing board” with Pang Da and Youngman Lotus, the Chinese investors.

In an interview with Reuters, Muller said that he is set to meet with the Chinese companies on Tuesday to review the possibilities left for Saab.

Muller said that there will always be alternatives but the problem is that the time is limited. In a statement, Swedish Automobile said that they will be attempting to agree on a structure that could be accepted by all the involved parties. GM still has preference shares in Saab and has continued to supply crucial parts to the brand. This is why GM’s approval is desired for the proposed rescue deal to push through.

Last Friday, GM spoke about the difficulties of supporting a Saab sale if it will only damage GM's competitive position in China and in other major markets. A source said that GM had offered to continue being Saab’s supplier under the new owners if they would agree to pay around $500 million to the U.S. automaker. GM has yet to officially comment on the status of the talks. [source: Autonews]

Topics: gm, saab

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