P&A Providers & Administrators
MenuMENU
SearchSEARCH

GM Won't Support Saab Sale

December 7, 2011
2 min to read


General Motors Co. said Tuesday it will not support the latest proposed deal to sell its former Swedish unit Saab to a Chinese consortium.


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

Ad Loading...


The latest announcement may mean the end of the struggling Swedish luxury automaker as early as this week, according to The Detroit News. Saab's North American headquarters is in Royal Oak.


GM licenses the technology Saab uses to produce several key models. GM has raised concerns about the intellectual property it has licensed to the company.


In early November, GM said it would not support the sale of Saab Automobile AB to two Chinese automakers.


Saab said Monday it was in talks on a revised deal to sell itself to one of the automakers — Zhejiang Youngman Lotus Automobile Co. Ltd. — and an unnamed Chinese bank.


Saab, which is reorganizing in Sweden under court protection from creditors, has faced mounting financial problems this year as several funding sources fell through.

Ad Loading...


It has built few vehicles since late March, its employees have suffered through payless paydays, and it hasn't been able to pay many of its bills.


Saab's restructuring administrator, Guy Lofalk, may end efforts to try to revive Saab, the Swedish business daily Dagens Industri reported. "I immediately have to decide if it really is possible to continue this restructuring," he told the paper.


Last week, GM attorneys met with Lofalk and the Swedish ambassador to the United States, Jonas Hafstrom. The two discussed efforts to save Saab, but the meeting didn't result in any concrete proposals. Saab sent GM a new proposed ownership structure on Friday, which didn't meet GM's concerns.


GM is Saab's former parent company. Saab was one of four brands GM opted to shed during 2009 bankruptcy restructuring.


In October, Pang Da Automobile Trade Co. and Zhejiang Youngman said they had agreed to buy Saab from its Dutch owner Swedish Automobile NV.

Ad Loading...


The sale price was $140 million in exchange for $600 million in funding to keep the company afloat.


Reuters reported Pang Da said in China on Monday it is still talking to Saab, though it wasn't named by Saab on Monday as a possible buyer.


More Industry

Photo of gray SUV plugged into public electric-vehicle charger in parking lot
Industryby Hannah MitchellJuly 21, 2026

World EV Adoption Set to Grow

A new report says the segment, despite recent setbacks in some regions, is poised for acceleration as many countries look to reduce pollution.

Read More →
Bar chart of truck and SUV segments' weekly value change
Industryby StaffJuly 21, 2026

Black Book: Weekly Market Update

Wholesale automotive auction business stayed steady last week as bidders encountered lower prices, analysts observed.

Read More →
laptop with blue car on screen on a shopping website, Clear Costs Convert
Industryby Lauren LawrenceJuly 21, 2026

Pricing Transparency Drives Purchase Consideration

An annual study by JD Power found that clear pricing matters to consumers on automaker websites, so much so that it increases their purchase consideration.

Read More →
Ad Loading...
Bar graphic of used-car segment weekly change
Industryby StaffJuly 14, 2026

Black Book: Weekly Market Update

Used-vehicle market depreciation was the prevailing story in the wholesale market last week.

Read More →
Light-blue Fiat car parked on a sunny Chicago street
Industryby Hannah MitchellJuly 14, 2026

Smaller Is Looking Better

A growing number of Americans in the market for a new vehicle are opting for more affordable options, not waiting for market stability to bite the bullet.

Read More →
man sitting at desk using calculator with charts in front of him, to-go coffee cup on desk, rising and falling data chart in front
Industryby Lauren LawrenceJuly 14, 2026

U.S. EV Market Slowly Stabilizes

U.S. electric-vehicle interest is slowly stabilizing since a major dip in sales after last year's end of the federal EV tax credit, and hybrids remain the leading electrified power train.

Read More →
Ad Loading...
blue background, map of the world with connecting lights and an electric vehicle emblem in the middle
Industryby Lauren LawrenceJuly 8, 2026

Global EV Market Entering New Phase

Automakers are making investments to lower battery costs and optimize production to meet changing consumer needs.

Read More →
Bar chart showing week-over-week wholesale automotive price change
Industryby StaffJuly 7, 2026

Black Book Weekly Market Update

The holiday weekend, not surprisingly, put a drag on wholesale automotive activity last week, analysts observed.

Read More →
Photo of Honda CR-V SUV on two-lane road next to roadside trees
Industryby Hannah MitchellJuly 1, 2026

Auto Affordability in Context

Cox Automotive points out the complex circumstances that have led to eye-popping vehicle prices.

Read More →
Ad Loading...
Line chart of used-vehicle days to turn over past week
Industryby StaffJune 30, 2026

Black Book: Weekly Market Update

Automotive auction inventory increased last week, giving choosy bidders even more leeway.

Read More →