Mahindra may drop plan to buy Saab because of GM image

Mahindra & Mahindra Ltd, the Indian automaker may drop a plan to bid for bankrupt Saab Stockholm-based newspaper reported, citing a person at the Indian carmaker it didn’t identify by name.

According to the same source, the Indian carmaker may not be able to purchase a Saab license agreement from General Motors Co. (GM), which it’s seeking as part of the deal.

Sources said GM has made it clear that it will not give intellectual property rights (IPRs) to any buyer for the 9-4 x and 9-5 models, leading to the failure of an earlier bid by Chinese automaker Zhejiang Youngman Lotus Automobile. Since then, Youngman has reportedly put in a revised offer of 3 billion crowns ($446 million) for Saab.

Saab Automobile and its two subsidiaries Saab Automobile Tools and Saab Automobile Powertrain have been in the hands of court appointed receivers since declared bankrupt in December, nine months after halting production due to a lack of funds.

Saab was already on the brink of bankruptcy when GM sold it in early 2010 to Dutch company Swedish Automobile (SWAN) — at the time called Spyker — for $400 million (308 million euros).