GM still opposing Saab China deal image

General Motors, former owner of Saab and current supplier of parts and technology to the automaker, is still opposing a rescue deal to sell Saab to Chinese automakers, according to Swedish business daily Dagens Industri.

Pang Da Automobile Trade and Zhejiang Youngman Lotus Automobile are interested in buying Saab from current owner Swedish Automobile. GM opposes the deal as it could compromise its competitive position in key markets including China and allow rivals access to its technology. The two Chinese investors submitted a new proposal to GM, after the U.S. automaker rejected the initial deal two weeks ago, but GM’s position has not changed.

“Saab and Youngman can do whatever they think is best for the company,” the paper quoted GM spokesman James Cain saying. “But if it is a 100 percent takeover of Saab, they are going to do it without the cars we deliver, the 9-4X, and without GM’s technology,” he added.

Swedish Automobile declined to comment on the matter. Pang Da and Youngman signed a memorandum of understanding with Swedish Automobile four weeks ago agreeing to buy Saab for €100 million ($142 million). The offer replaced the initial deal to purchase a combined 53.9 percent in Swedish Automobile for €245 million.

  • John

    It's GM's inferior technology that caused Saab to fail. GM's stock is dropping to new lows and I know the people won't stand for another bailout. The Chinese government should retaliate against GM for blocking Pang Da and Youngman from buying Saab.

  • Joel

    Shame on GM!

  • Tom

    I don't get why GM is opposing the sale? They will get money for building and selling 9-4X. The U.S. government should make GM accept the sale of Saab to the Chinese since they still owes the tax payer money for the bailout?

  • John D

    Fear and protectionism at its' worst. Giving up my 07 95 Aero and my wife's 93 Combi because of this. Will miss my Saabs and probably a trip to the GM dealer. Thought about them as a replacement but doubt I will now.