The Saab Saga Continues: GM Threatens to Shelve 9-4x

[Blake Noble]

The Saab Saga Continues: GM Threatens to Shelve 9-4x

By "black-knight" C&G Editor/Reporter

8th November, 2011

If you've been following the story of Saab since GM cut its ties with the Swedish automaker then you'd know that things are not all well and good in Scandinavia. However, things may only continue to get worse.

Recently, Saab CEO Victor Muller, who has risked everything to continue the Saab legacy (going so far as to sell Spyker, the sports car firm that brought him good fortune), announced that Chinese automakers were interested in supporting Saab with a fifty-fifty partnership. Then, not too long after that, those same Chinese automakers, Youngman and Pang Da decided an outright takeover would be more appropriate than propping Saab up with a partnership. Saab first backed down and then later came to an understanding with Youngman and Pang Da. This drama is playing out alongside Saab's bankruptcy woes and the fact that the Trollhättan plant hasn't produced one brand new 9-5 since April.

The plot has thickened further in the last few days, though. GM has grown worried about two things: a complete conflict of interest between Saab's future Chinese owners and the Chinese automaker SAIC, with whom GM shares a Chinese bedroom with and, at the forefront of it all, what would be pirated technology. Unwilling to allow the potential sharing of proprietary technology with the two unaffiliated Chinese firms, GM has said it will sever all ties with Saab in the form of cutting off supplies of powertrains, parts, and vehicles to Saab. Sitting directly in the crosshairs of that statement is the 9-4x which shares its platform and most of its components with the Cadillac SRX.

GM's Jim Cain released a statement on Monday about the situation, which stated: "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."

Muller stated that the deal would "have to go back to the drawing board" as a result of GM's hardened position on the issue.

Sources: Chicago Tribune and Automotive News

Edited November 10, 2011 by black-knight

[Drew Dowdell]

and GM is right to do so.

[G. David Felt]

Good Job, Protect American technology from China. They love to pirate stuff for free.