Nov 4 General Motors Co (GM.N) said on Friday
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.
China's Pang Da Automobile Trade Co (601258.SS) and
Zhejiang Youngman Lotus Automobile have struck a deal to buy
Saab from its current Dutch owner, Swedish Automobile
SWAN.AS, in what amounts to a rescue plan for the Swedish
auto brand formerly owned by GM.
Swedish Automobile, then called Spyker, rescued Saab from
closure by former owner General Motors Co (GM.N) in early
GM still has preference shares in Saab and is a major
supplier of vehicle components and so must approve the Pang Da
and Youngman takeover.
"GM would not be able to support a change in the ownership
of Saab which could negatively impact GM's existing
relationships in China or otherwise adversely affect GM's
interests worldwide," GM spokesman Jim Cain said in a
Saab has lurched from crisis to crisis in the past year and
has not produced a car in months. The company was given court
protection from creditors in Sweden in September. It was the
second time Saab received protection from creditors in two
If Pang Da and Youngman were able to complete the deal to
purchase and rescue Saab, it would mark the second time that a
struggling Swedish auto brand once controlled by Detroit
automakers has been acquired by a Chinese company.
In August 2010, Geely (0175.HK) bought Volvo from Ford
Motor Co (F.N).
Pang Da operates auto dealerships in China.
Youngman produces commercial vehicles, including buses and
trucks, and sells cars under the Lotus brand.
(Reporting by Kevin Krolicki; Editing by Lisa Von Ahn)