Recent reports from Reuters lay claim that if the deal between Saab and China’s Pang Da Automobile Trade Co. and Zhejiang Youngman Lotus Automobile goes through, General Motors will essentially sever all remaining ties with the Swedish automaker. This includes parts supply for cars like the Epsilon II-based Saab 9-5 and Theta-based Saab 9-4x. GM reps have already voiced their stance of disapproval on the company’s behalf just days ago.
“Although General Motors is open to the continued supply of powertrains and other components to Saab under appropriate terms and conditions, GM 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 GM shareholders,” stated GM spokesman Jim Cain.
The plan would essentially kill the current rescue plan outlined for Saab by Pang Da and Youngman. Saab chief Victor Muller noted that negotiators would have to “go back to the drawing board” on the deal, that is if the other parties are still willing to work around such an obstacle.
Ironically, we remember a time not too long ago where General Motors was in a similar state of serious vulnerability.