US Judge Dismissed Spyker Lawsuit Against GM image

Spyker NV’s lawsuit against GM was dismissed by a US federal judge, saying that the US car maker had the right to block the sale.

Spyker NV sued GM in August 2012 for trying to bankrupt Saab, but the lawsuit was dismissed by a US federal judge, saying that GM had the right to block the sale of a company which used its technology.

“General Motors had a contractual right to approve or disapprove the proposed transaction,” U.S. District Court Judge Gershwin Drain said in a hearing in Detroit. “The court is going to grant the motion to dismiss the matter.”

The judge added that when Spyker purchased Saab, it gave GM the right to stop ownership change and that GM’s opposition to the deal with Youngman was not made to harm Saab. The Swedish brand Saab ceased production in May 2011, unable to pay its employees and suppliers and in December 2011 it went bankrupt.

“We are pleased with the court’s decision to dismiss the case, which we believe was the appropriate result,” GM spokesman Dave Roman said in an email.

In 1990 GM purchased half of Saab and in 2009 decided to sell the company. Last autumn the National Electric Vehicle Sweden signed a deal to buy most of Saab’s assets and the company said it plans to build the first EV based on Saab platforms for the Chinese market at the beginning of 2014.

Source: Reuters