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GM rejects yet another Saab re-organisation proposal
Saturday, 17 December 2011
General Motors (GM) which still has a leading say in the Saab automobile based on the fact that it was the previous owner, has yet again rejected proposal put forward by Saab to turn its future around.

According to new reports today, Saturday, GM can not accept any of the new proposals for a solution for Saab presented so far, said GM in a statement.

Since Saab manufactures cars under license from GM that owns the technology, GM's approval decision is vital and Saab has tried to find a solution around that problem but yet to crack it open.

On Monday, Saab is expected to go to the Vänersborg court where the re organisation appeal was to be heard so that the reorganisation can be extended.

But now, according to General Motors spokesman James Cain, there are no major changes in the new proposals for a proper solution to be designed for Saab compared with the old proposal which GM previously rejected.

Each proposal will result directly or indirectly in a transfer of control of the company in a way that would be harmful to GM and its shareholders. Therefore, GM can not support any of the proposals, Cain writes in the press release.


From GM's perspective, any attempt to rescue Saab has meant changes in ownership but then  GM  wants to protect its interests by stopping the technology licenses from leaving Saab and the manufacture of 9-4X, said GM spokesman James Cain, according to radio Sweden.

The persistent rejection of the Chinese by GM has meant that Chinese Youngman would only lend money to Saab, but would have no say in the company’s ownership in the company. Therefore there will be no changes in ownership of Saab and thus GM would veto according to Saab.
But GM says that Saab's new solution means that at the end it will still lead to the same thing change of ownership via the back door.

“The final result is the same and we are sure that most observers except Saab would agree with us,” says James Cain according t radio sweden.

On Monday it is expected that Saab auto present a new proposal at the Vänersborg court in a meeting that was designed to recall Saab’s reorganisation.

There was also the question whether Guy Lofalk should be dismissed as the administrator and replaced by Lars Soderqvist.
The employees have not yet received their November salaries. Saab's management has stated that on Monday they should have received money for salaries from China Youngman.

In a comment via text message to radio sweden, Saab CEO, Victor Muller said that GM based its statement on hearsay and that they are out to affect adversely the district court’s decision on Monday on the  re - organization meeting.
Muller maintains that GM should not have anything to say. Now it's about convincing the partner Youngman not to withdraw.
By Scancomark.se Team

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