GM 'won't support' new plans to save Saab

TT/The Local/dl
TT/The Local/dl - [email protected]
GM 'won't support' new plans to save Saab

General Motors (GM) said on Saturday it cannot accept any of the proposed solutions presented so far to help save Swedish automaker Saab Automobile, which continues to teeter on the brink of bankruptcy.


In an email statement issued on Saturday, GM spokesperson James Cain said Saab’s new proposals were “not meaningfully different” from previous solutions which GM had already rejected.

"Each proposal results either directly or indirectly in the transfer of control and/or ownership of the company in a manner that would be detrimental to GM and its shareholders,” said Cain.

“As such, GM cannot support any of these proposed alternatives.”

Speaking with Swedish daily Svenska Dagbladet (SvD), Saab CEO Victor Muller countered by saying that “GM doesn’t have anything to say” on a deal in which Chinese automaker Youngman would receive “zero percent” of the shares in Saab Automobile.

“The statement obviously comes from hearsay and is meant to negatively affect Monday’s court proceedings,” Muller told SvD.

On Monday, Vänersborg District Court will convene to decide on whether Saab’s reorganization should be terminated or extended.

The court will also examine the question of whether, Guy Lofalk, the current administrator appointed by the court to oversee Saab's business reorganization, should have his term extended or if he should be replaced by Lars Söderqvist.

Citing sources within Saab, SvD reported the company plans to present a plan to the court on Monday whereby the Swedish automaker would launch a technology development company in the Netherlands, half of which would be owned by Youngman.

“I don’t understand at all why GM would say something like this,” Söderqvist told the TT news agency.

“The latest proposal isn’t formulated in such a way as to require approval from GM.”

If GM’s statement stems from a misunderstanding of some sort, Söderqvist is convinced that GM will be supplied with the information it needs.


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