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According to Saab CEO, Victor Muller, a takeover offer of the Swedish brand by China’s Zhejiang Youngman Lotus Automobile Co. and Pang Da Automobile Trade Co. has been turned down.
Although initial talks were intended to aid Saab in raising capital, Muller explains during a Reuters interview, “The token offer was unacceptable because it would trigger every conceivable change of control clause and that would possibly mean the end of Saab.”
Although the undisclosed offer was unsuccessful, the two Chinese automakers are still interested in Saab, committed to their 53.9 percent stake in the Swedish brand.
Addressing Saab’s plans if the Chinese companies walk away from the deal, Muller answers, “There is always a plan B.” However, keeping his cards close to his chest, Muller will reveal the details of the plan, “only if we resort to it.”
Moreover, an investment firm has also pledged an injection of capital, prompting the directing administrator in charge of Saab’s reorganization to request on Thursday for the Swedish court to pull the plug on Saab’s bankruptcy protection. Saab, having extended plants halts since March due to lack of money, avoided bankruptcy last month when the Swedish court granted Saab voluntary reorganization.
[Source: Automotive News]
General Motors has announced it will close down Saab after discussions to sell the brand fell through.
“Despite the best efforts of all involved, it has become very clear that the due diligence required to complete this complex transaction could not be executed in a reasonable time,” said Nick Reilly, president of GM Europe. “In order to maintain operations, Saab needed a quick resolution.”
GM had been in discussions to sell Saab to Spyker Cars but was unable to resolve some issues with the Dutch manufacturer. Last month, Koenigsegg also had interest in acquiring Saab before backing out.
Reilly says Saab will continue to honor warranties and provide service and parts to current owners.
Beijing Automotive Industry Holdings’ purchase of some Saab property, notably 9-3 and 9-5 powertrain technology, is not expected to be impacted by today’s annoucement.
Official release after the jump: