What's The Best Place For Your Teen To Learn How...

GM Won't Allow Saab's Sale To The Chinese

 
3 1,110 views Nov 7, 2011

2011 Saab 9-5

2011 Saab 9-5

Enlarge Photo
Just last Friday we told you that GM might object to Saab’s sale to Chinese companies Pang Da and Youngman, and now we have confirmation that the American auto giant will move to block the sale.

At issue are two things: the continuation of existing technology licenses (for GM components used in Saab vehicles) and the ongoing supply of Saab 9-4X crossovers that GM builds for Saab in Mexico.

GM, through a series of joint ventures and partnerships, is the largest automaker in China, and has expressed concerns about intellectual property currently licensed to Saab falling into the hands of its Chinese competitors.

The Detroit News quotes GM spokesman Jim Cain as saying that, “General Motors is open to the continued supply of powertrains and other components to Saab under appropriate terms and conditions,” but that the continuation of technology licenses or the supply of further 9-4X vehicles, “would not be in the best interests of GM shareholders.”

GM is one of four key players who must approve the sale of Saab before it can proceed, with the others being the European Investment Bank, the Swedish government and the Chinese government. Saab will try to work out an arrangement with Pang Da and Youngman that will be agreeable to GM, but a happy ending to Saab's story isn't likely. If GM blocks the sale of Saab, bankruptcy, followed by liquidation, is the likely outcome for the Swedish automaker.

To follow our ongoing coverage of Saab's woes, click here.



Tags:
Posted in:
 
Contribute
Send us a tip Comment Contact the editor
Follow Us

 

Have an opinion?Join the conversation!

  • Posting indicates you have read this site's Privacy Policy and Terms of Use
  • Notify me when there are more comments
Comments (3)

  1. davidturnedge avatar davidturnedge Posted: 11/7/2011 9:58pm PST

    Perhaps GM should of thought about what would happen to Saab before it screwed the brand?
     
    Post Reply
    Vote
    Bad stuff?

  2. Damien Thomas avatar Damien Thomas Posted: 11/7/2011 11:37pm PST

    lol - who are you kidding? This is GM we're talking about. They couldn't even save their own brands, you think Saab ever had a chance.
     
    Post Reply
    Vote
    Bad stuff?

  3. fb_33701777 avatar Will Cheval Jr. Posted: 11/8/2011 8:35am PST

    It's just so disappointing that Saab tried so hard to rebuild what GM destroyed. GM is also afraid of what the Chinese will gain by this purchase. I'm agreeing with you davidturnedge. GM should've considered this before thoroughly devastating the brand.

    I do NOT believe GM should have any say in the purchase. Sadly, I'm not a legal professional so whether there was specific rules in the contract Spyker signed, I don't know. But GM remains the bully in this situation, and I doubt Saab will be able to pull a rabbit out of a hat.
     
    Post Reply
    Vote
    Bad stuff?

 

Have an opinion?Join the conversation!

Connect with Facebook

Motor Authority. Now with your friends.

Discover stories your friends read.
Share stories more easily.
You control what you share.
Learn more

Research New Cars

Go!


More from High Gear Media

 
 
MotorAuthority
  • Follow Us
  • Twiiter
  • Facebook
 
 
© 2011 MotorAuthority. All Rights Reserved. MotorAuthority is published by High Gear Media. Stock photography by Homestar, LLC. Send us feedback.