GM might block Saab sale to China’s Pang Da and Youngman
By Andrew, 06 Nov, 2011. 0 Comments
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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]
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