Wednesday 7th December 2011

The Saab saga goes on: GM's still saying 'no'

Saab's future bleak as General Motors still disapproves of buyout by Chinese

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Will the 9-5 ever make it back into production?

General Motors said yesterday that it would still refuse to approve a revised ownership structure for Saab's proposed sale to Chinese car makers Pang Da and Youngman.

Saab was sold by GM to Swedish Automobile in early 2010, but still relies heavily on GM technology licences and production contracts. And GM is nervous that a buyout of its former subsidiary by the Chinese would adversely affect GM's competitive position in China and other developing markets.

Saab hasn't built a car since April

"We have reviewed Saab's proposed changes regarding the sale of the company," GM spokesman James Cain said in a statement. "Nothing in the proposal changes GM's position. We are unable to support the transaction."

Swedish Autombile's new proposal is thought to involve an unnamed Chinese bank, and it is reported that one of the two Chinese car companies originally involved, Pang Da, has pulled out of the deal.

Saab now hasn't produce any cars since April, but it isn't giving up yet. Swedish Automobile CEO Victor Muller told the Reuters news agency that "there is always Plan B", though he would not elaborate on exactly what it was. We presume he does not mean that Ben Drew will be investing in the company...

Follow the whole Saab saga in the PH forums here

[SD1992]

I wonder what will happen to them in the end?

It would be a shame to see Saab go out the window, but I really don't know why GM are not doing anything with them.

Does this mean that the new models are going to be very cheap? What will the availability of spare parts be like?

[SD1992]

The Crack Fox said:

Why isn't this in the 'Saab gone' thread ?

I just went to comment on the story on the PH homepage, didn't realise it would go into a whole new thread!