The sale of Saab seems to be incomplete until GM says so but the US auto giant looks reluctant to sign off the sale of SaabFriday, 04 November 2011
Although most people thought that the miseries of Saab automobile is over as the Chinese step in to pump in badly needed money, there seem to still be a mission chip in the puzzle, GM.
Latest news holds that, General Motors may halt the sale of the automaker Saab to Chinese Youngman and Pang Da and this is worrying because as a now GM is still hesitating to sign off the sale of the company to the Chinese.
AdvertisementThe expectation has been that the deal to sell the company to the Chinese Pang Da and Youngman could save Saab Automobile’s continued existence after having remained un productive for months as a result of lack of money.
The companies have promised to inject in new millions as investment to get the little carmaker in the Trollhattan, near Gothenburg Sweden to get back to producing cars again.
But the previous owner General Motors can stop the deal and it is beginning to become clearer why GM is hesitating to approve a sale.
"GM can not support the 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 in an email, according to Swedish business daily, Dagens Industri.
Saab CEO Victor Muller has himself predicted that it may be difficult to get the deal approved by GM, which still owns preference shares in Saab.
"The transaction includes of course the critical parts for GM, "he said during a conference call when the news of the letter of intent was being signed, where Pang Da and Youngman agreed to buy one hundred percent of Saab.
The deal is sensitive for GM vehicles since the giant owns the technology for Saab cars and does not like this technology to go into Chinese hands. This would compete with Americans' own Chinese partner SAIC, according to reports.
By Scancomark.se Team
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