GM continues to oppose a rescue deal to sell Saab

Article by Christian A., on November 24, 2011

General Motors Co. continues to resist a rescue deal to sell Saab to Chinese vehicle firms Zhejiang Youngman Lotus Automobile Co. and Pang Da Automobile Trade Co., according to the report of the Swedish business daily Dagens Industri. GM is the former owner of Saab. It is also the current supplier of technology and components for the vehicle manufacturer.

The company opposed the agreement on grounds that it could compromise its competitive position in key markets such as China. It asserted that the deal allows competitors access to its technology.

The two Chinese investors have offered a new proposal to GM after the company rejected the initial offer two weeks ago, according to the newspaper's report. However, GM's position has not changed. The paper cited GM spokesman James Cain saying that Youngman and Saab can do "whatever they think is best for the company."

He also said that if it is a 100 percent takeover of Saab, "they are going to do it without the cars we deliver, the 9-4X, and without GM's technology." Saab's current owner, Swedish Automobile, was not available for comment. Discussions between Chinese investors and Swedish Automobile are still ongoing despite the automaker holding meetings with creditors this week to present a future financing plan.

Saab has been operating under creditor protection while attempting to restructure its operations for a second time since it was put up for sale in 2009 by GM. A month ago, Youngman and Pang Da signed a memorandum of understanding with Swedish Automobile wherein they agreed to purchase Saab for 100 million euros or $142 million. This agreement will replace an initial deal to buy a combined 53.9 percent in Swedish Automobile for 245 million euros. [source: Autonews]

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