General Motors to severe ties with Saab due to risks posed by Chinese sale
The two firms have struck a deal worth in the region of €100m to buy Saab from its current Dutch owner, Swedish Automobile, in what amounts as a rescue plan for the company formerly owned by GM.
With Saab currently in the process of reorganising itself under bankruptcy protection, GM has admitted that it would be difficult to support any sale of Saab if it were to threaten the position of the company in China and any other significant markets.
In an official statement, GM commented: ‘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 interest of GM shareholders.’
Swedish Automobile said in a statement: ‘Swan and Saab Automobile have acknowledged the positions taken by General Motors and will now discuss this with Pang Da and Youngman to see whether a structure can be agreed which is acceptable to all parties concerned.’For more of the latest industry news, click here.