November 8, 2011
General Motors halts Saab’s Chinese takeover 0
General Motors have threatened to stop supplying technology for Saab cars if the proposed Chinese investment goes ahead. The company sold Saab back in 2010.
We reported in a previous article last month that Saab could survive and be on their way up. Pan Da Automobile Trade and Zhejiang Youngman Lotus Mobile had previously agreed a buyout deal worth £86million.
We also reported yesterday about leaked pictures of the future Saab 9-3. In that article, we stated that rumours have been circulating around that the investment was not secure and a takeover will not happen. That unfortunately appears to be true.
Everything has to start again in terms of the negotiations regarding the deal according to Victor Muller, the Chief Executive of Swedish Automobile.
The Chair of the Union Labour Union, Anette Hellgren, stated that she would like progression to be made get a move on. She said regarding the technology licenses “I’ve got the impression that there are several steps about which decisions need to be made in this day and that this is one of them,”
General Motors have taken a strong stance and have said they will not supply any technology which Saab so desperately need in vehicles such as the Saab 9-4x SUV.
General Motors spokesman, Jim Cain, claimed the company’s stance is due to the takeover not being in “the best interests” of shareholders.
His exact words were “Although General Motors is open to the continued supply of powertrains and other components to Saab under appropriate terms and conditions, GM will not agree to the continuation of the existing technology licenses or the continued supply of 9-4X vehicles to Saab following the proposed change in ownership as it would not be in the best interests of GM shareholders,”
A previous article last month detailed Saab being unable to pay suppliers and their own staff in a downturn for the company. The investment from the Chinese company was supposed to give Saab a major financial boost in order to sort out their wavering debts. What will happen from here?
There seems to be no end to the drama of Saab at the moment.