Detroit, MI, United States (AHN) – The sale of Saab to Chinese investors is going from a done deal to a deal undone by General Motors’ decision to stop supplying its technology to any potential buyers in China.
GM’s sudden announcement puts the brakes on the sale of Saab by its current owner, Swedish Automobile, to Chinese investors Pang Da Automobile Trade and Zhejiang Youngman Lotus Automobile.
Swedish Automobile purchased Saab from GM in 2010. GM was still supplying technology for the vehicles.
In the meantime, Saab has had financial problems, and auto production shut down earlier this year after Swedish Automobile was unable to meet payroll for Saab workers.
Pang Da Automobile Trade and Zhejiang Youngman Lotus Automobile offered to pay Swedish Automobile $138 million for Saab, and it looked like things would go smoothly. Then, GM announced it would not supply its technology to Chinese investors.
GM said it would not be in the best interests of GM or its shareholders to allow its technology to fall into the hands of competitors.
Swedish Automobile said negotiations would have to return to the “drawing board.”
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November 9th, 2011 
davidguide 
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