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Car industry

Saab continues talks with Chinese companies

Published tisdag 8 november 2011 kl 10.07
GM Spokesperson: Jim Cain
(3:06 min)
Saab's CEO Victor Muller has not left the picture. Photo: Adam Ihse/Scanpix

The car maker Saab is continuing efforts to close a deal with the Chinese companies Youngman and Pang Da, after the American car giant General Motors on Monday put a stop to an all-out sale to the two Chinese companies. "The next step is to discuss with the Chinese to find a structure that suits everybody," Saab's press spokesperson Gunilla Gustafs told the news agency TT.

General Motors put a halt to the latest line of negotiations between Saab and Youngman and Pang Da, announcing on Monday that it is not willing to continue supplying Saab with components and technology if an all-out sale to the two Chinese companies goes ahead.

The Minister of Enterprise, Annie Lööf, regrets that General Motors is putting an end to the sale of Saab, but says the government cannot do anything at the moment. Asked by Swedish Radio News if she was surprised by the move by GM on Monday, she says that she was disappointed as "last week's positive situation where we saw a possible Chinese solution was very pleasant."

"Now we start from square one again. It is now up to the company's administrator to find a long-term solution for Saab," she told Swedish Radio News.

GM, which operates in China in a partnership with state-run automaker SAIC Motor Corp Ltd, said it had concluded that continuing to supply vehicles and technology to Saab's new owners would run counter to the interest of its own shareholders.

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