G.M. to Cut Ties to Saab
DETROIT — General Motors said Monday that it had decided to sever its ties with the Swedish automaker Saab and its commitment to supply it with vehicle components and the 9-4X model because of the risks posed by Saab’s pending sale to Chinese companies.
“Although General Motors is open to the continued supply of powertrains and other components to Saab under appropriate terms and conditions, G.M. 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 G.M. shareholders,” said Jim Cain, a G.M. spokesman.
The statement represented a hardening in G.M.’s opposition to the proposed rescue plan for Saab and appeared to lengthen the odds for the brand’s survival. On Friday, G.M. said that it would be difficult to support a sale of Saab if it hurt G.M.’s competitive position in China and other key markets, reported The New York Times.
Swedish Automobile, the struggling company that owns Saab, said it would discuss General Motor’s objections with the company.
“I expect this to happen tomorrow. There are always alternatives but we only have limited time,” the chief executive of Swedish Automobile, Victor R. Muller, told Reuters in a text message.
Pang Da Automobile Trade and Zhejiang Youngman Lotus Automobile have struck a deal to buy Saab from Swedish Automobile, in what amounts to a rescue plan for Saab, which was formerly owned by G.M. The sale, however, awaits approval from G.M., which has preferred shares in Saab and has supplied it with crucial components. In addition, the Saab 9-4X, a crossover vehicle, is based on G.M.’s Cadillac SRX and is built at a G.M. plant in Mexico.
Separately, G.M. said that D.Nick Reilly, the head of its European business, would retire after 37 years with the company and be succeeded by Karl-Friedrich Stracke, chief executive of Opel/Vauxhall.
Mr. Stracke will keep his current title after he takes over as president of GM Europe on Jan. 1, G.M. said. GM Europe comprises Opel, Vauxhall, Cadillac Europe and Chevrolet Europe.
More Industry

Kia Closes Out Summer With a Bang
Its U.S. subsidiary broke multiple records in August, in part due to a surge of demand for hybrids models.
Read More →
Indiana Dealership Changes Hands
A 30-year-old Ford dealership in Indiana has a new owner and will soon be undergoing renovations to meet manufacturer requirements.
Read More →
Texas Dealership No Longer in the Family
The Ford store, a longtime cornerstone of the Houston market, is now part of one of the fastest-growing U.S. auto groups.
Read More →
Genesis Grows California Presence
The Cardinale Automotive Group opened its third Genesis rooftop in the Golden State, Genesis of San Bruno, a stand-alone dealership serving the San Francisco Bay Area.
Read More →
August Auto Sales a Mixed Bag
An early forecast shows strong business despite consumer hurdles, and hybrids are a big piece of their affordability coping strategy.
Read More →
EV Market Humming Along
July sales show steady growth as the segment stabilizes from last year’s artificial surge following pullback of federal support.
Read More →
Auto Loan Delinquency Rates Stabilize
Auto loans are a main driver of nonmortgage consumer debt, but delinquency rates stabilized in the second quarter across all credit risk tiers.
Read More →
EV Sales Recover in Q2
The EV sales roller coaster continues as numbers show improvement, but industry experts predict a year-over-year third-quarter decline and fourth-quarter jump.
Read More →
The Cheapest Hybrids to Fuel
The powertrain is increasing in popularity, in no small part due to its fuel economy. A new report lists the most efficient hybrids on the market.
Read More →
Hybrids and SUVs Gaining Ground
The most recent Kelley Blue Book Brand Watch found that only two nonluxury brands increased in shopper consideration, buoyed by their hybrid and SUV offerings.
Read More →