GM rejects the sale of Saab to the Chinese for strategic reasons businessMonday, 07 November 2011
American motor giant, General Motors (GM) is putting a stop to the sales its technology licenses to Saab's prospective Chinese owners, according to several media reports.
GM now looks to overturn Saab China Business. The U.S. car producers says no to selling technology licenses to the current 9-3, 9-5 and 9-4X with current arrangements.
AdvertisementThe reason is that GM does not want to risk its business in China. There the company has an exclusive Cohabitates Act with Shanghai Motors and China market is GM's most important future market.
"GM will not agree to continue to deliver existing technology license or continued sales of 9-4X to Saab after the proposed change in ownership, then it would not be to the benefit of GM's shareholders, "said Jim Cain, a spokeswoman for the company, in an emailed statement, reports Bloomberg.
"With this proposal, we can not agree to continue with the licenses,” said James Cain, General Motors spokesman to radio Sweden.
The deal with Chinese Pang Da and Youngman was supposed to rescue Saab Automobile. The companies have promised new billion in investment to get the little carmaker in Trollhattan to resume reconstruction.
We have reported earlier that Saab’s former owner, General Motors will hesitate to approve the sale of the company to the Chinese as it would cause collusion with its own business interest there. We also pointed that Saab’s CEO Victor Muller has previously said that it will be difficult to get approved from GM, which still owns preference shares in Saab.
"GM can not support a change of ownership of Saab, which could affect GM's existing relationships in China negatively, or otherwise adversely affect GM's interests worldwide, "said James R. Cain at General Motors.
By Scancomark.se Team
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