GM might block Saab sale to China’s Pang Da and Youngman

Article by Christian A., on November 6, 2011

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]

If you liked the article, share on:

Topics: gm, saab

Comments

Recommended

The Chevrolet Corvette will be turning 65 years old in 2018, and as part of the celebrations, the brand is introducing a special edition C7 – the Chevrolet Corvette Carbon...
by - November 19, 2017
Tesla revealed that with its new Semi, truck drivers can expect better experience especially with heightened safety and the lower cost of transporting cargo. Indeed, the cabin of the new...
by - November 19, 2017
November 17 is considered a very special day for Tesla, as this is the day that they revealed the highly anticipated Tesla Semi. But Elon Musk did not think the...
by - November 17, 2017
More details have emerged about the new sixth generation of the BMW M3 just as the German premium practically announced the end of the current-gen 3 Series with the unveiling...
by - November 17, 2017
All is set for Volkswagen’s plans to enter the electric vehicle game, as prompted by the so-called Dieselgate scandal. In fact, the German carmaker has already made a commitment to...
by - November 17, 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