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Discussion Starter · #1 · (Edited)
The saga continues..



http://www.4wheelsnews.com/gm-might-block-saab-sale-to-chinas-pang-da-and-youngman/

General Motors Co., the former owner of Saab, believes that it would be hard to support a Saab sale if it will harm its current tie-ups in China or its competitiveness in other markets. In what is considered to be a rescue strategy, a deal had been entered by China's Pang Da Automobile Trade Co. and Zhejiang Youngman Lotus Automobile to purchase Saab from its present Dutch owner, Swedish Automobile. Swedish Automobile, formerly called Spyker, had saved Saab from being shut down by former owner General Motors in early 2010.

GM continues to have preference shares in Saab and is a major supplier of vehicle parts. That’s why the approval of GM is required for the Pang Da and Youngman takeover.GM spokesman Jim Cain said that GM won’t be able to support a change in Saab’s ownership. This could have a negative effect on GM’s current relationships in China. It may also have an impact on GM's interests globally. In the past year, Saab has experienced one crisis after another.

In addition, it hasn’t built a car in months. Last September, the company received court protection from creditors in Sweden.This is the second time that Saab had gotten protection from creditors in two years. If Pang Da and Youngman complete a deal to purchase and rescue Saab, it would be the second time that a Chinese company will acquire a Swedish auto brand that had once been owned by a Detroit car company. [source: DetNews]

Latest from Reuters: http://www.reuters.com/article/2011/11/07/us-saab-gm-idUKTRE7A63SP20111107?type=companyNews

"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," GM spokesman Jim Cain said.

The e-mailed statement represented a hardening in GM's opposition to the proposed rescue plan for Saab and appeared to lengthen the odds for the brand's survival.

On Friday, GM had said that it would be difficult to support a sale of Saab if it hurt GM's competitive position in China and other key markets.

China's Pang Da Automobile Trade Co (601258.SS) and Zhejiang Youngman Lotus Automobile have struck a deal to buy Saab from its current Dutch owner, Swedish Automobile (SWAN.AS), in what amounts to a rescue plan for the Swedish auto brand formerly owned by GM.

But the deal had to be approved by GM, which still has preference shares in Saab and has supplied the Swedish auto brand with crucial components.

Saab has lurched from crisis to crisis in the past year and has not produced a car in months. The company was given court protection from creditors in Sweden in September. It was the second time Saab received protection from creditors in two years.

Pang Da operates auto dealerships in China. Youngman produces commercial vehicles, including buses and trucks, and sells cars under the Lotus brand.
 

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I understand why, GM has way too much IP to lose to the Chinese if this sale went through.
Yeah. GM has every reason to be worried about the fate of its IP in this situation, particularly since they're not in a position to dictate the terms of the deal.
 

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Yeah. GM has every reason to be worried about the fate of its IP in this situation, particularly since they're not in a position to dictate the terms of the deal.
I also mentioned in the original thread that the real stick up here may be that SAIC is not very happy with the situation.

SAIC is a few month away from unveiling the new Roewe 750, which is based on the Epsilon II platform (basically going to be a restyled Buick LaCrosse). If YML gets their hand on the Saab 9-5, SAIC will be facing some serious competition with another GM offshoot, which the same 2.0T engine and everything. And SAIC really calls the shots in China... GM does its bidding.
 

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Could be a resonable idea for GM to buy Saab and then liquidate it, cutting all ties. If someone wants to buy the name, they can build the cars from scratch and GM can cut its ties for good.
The Swedish gov. probably wouldn't allow the sale for the express purpose of liquidation. As I recall they have standing in this situation.
 

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The Swedish gov. probably wouldn't allow the sale for the express purpose of liquidation. As I recall they have standing in this situation.
That was a condition of receiving State funds and forgiveness on certain tax liabilities in exchange for keeping jobs in Sweden. The assumption was that Spyker will get enough investor financing and retain control of the reconstituted company. I don't think that is the case anymore now that Saab is going to be 100% owned by the Chinese. If the sale to Chinese is approved, there will be enough cash and no Swedish Govt bailout is required.
 
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