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