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

Kia Niro SUV in gold color parked outdoors
Industryby Hannah MitchellSeptember 1, 2026

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 →
Outside of Auto Park Ford dealership
Industryby Lauren LawrenceSeptember 1, 2026

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 →
Three men standing in front of two classic cars handing off gift.
Industryby Hannah MitchellAugust 25, 2026

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 →
Ad Loading...
Outside of modern car dealership “Genesis of San Bruno
Industryby Lauren LawrenceAugust 25, 2026

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 →
Red Honda Civic hybrid sedan on two lane road with green hills in background
Industryby Hannah MitchellAugust 21, 2026

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 charger inserted into dark-colored car port
Industryby Hannah MitchellAugust 18, 2026

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 →
Ad Loading...
car in background with hand giving a thumbs up in front
Industryby Lauren LawrenceAugust 14, 2026

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 →
blue sky, yellow and orange rollercoaster with riders going up an incline
Industryby Lauren LawrenceAugust 12, 2026

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 →
Photo of blue Toyota Prius parked next to body of water with city skyline in background
Industryby Hannah MitchellAugust 5, 2026

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 →
Ad Loading...
white SUV parked in front of a body of water with a gray sky background
Industryby Lauren LawrenceAugust 5, 2026

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 →