According to reports, the rescue deal for Saab made by Pang Da and Zhejiang Youngman will have to be redone after General Motors made objections. “We have to go back to the drawing board,” said Viktor Muller, chief executive of Swedish Automobile.
GM said yesterday it had decided to sever ties with Saab, revoking its commitment to supply it with vehicle components and the 9-4X model because of the risks posed by the pending sale of the brand to Chinese owners, the report states.
An official statement from GM put the message across very clearly. “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.”
Last week, GM had stated that it would be difficult to support a sale of Saab if the transaction hurt its existing tie-ups in China or its competitive position in other markets. The US automaker still has preference shares in Saab and is a major supplier of vehicle components, and so must approve the Pang Da and Youngman takeover. At this point, the fate of the Swedish automaker continues to hang in the balance.