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

Article by Christian A., 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]

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