Gasgoo.com (Shanghai November 30) - Pangda Automobile Trade Corporation's current proposal to purchase Saab has been rejected by General Motors, caixin.cn reported, quoting Swedish media reports. Pangda and Youngman are currently in the process of forming a new proposal.
Pangda originally proposed to buy the 60 percent share Youngman aims to purchase in the ailing Swedish manufacturer. It looks now, however, that the company will aim to buy enough to hold a majority share in Saab. However, GM is unhappy with any proposal that sees Chinese companies holding 100 percent of the manufacturer, and will reportedly refuse to offer auto part support and technology to a Saab exclusively owned by Pangda and Youngman.
"We have resubmitted a new proposal [regarding Saab] to GM, and they have still not agreed," Yang Guangyu, an employee on Pangda's board of directors' office, said, adding that the final result depends primarily on GM's response. Saab had previously promised that it would negotiate with owner GM, however those discussions have apparently not softened GM's resolve. Mr. Yang added that Pangda was aware of the possibility that Saab may prove a liability for the group.
