GM rejects latest Saab proposal, Swedish Automobile to pursue alternatives

Saab is inching ever closer to liquidation. Reuters reports General Motors will not support a proposed deal that would see the Swedish brand rescued with cash from a Chinese bank. GM has repeatedly cited concerns that any deal with a Chinese partner could conceivably hurt the American automaker's competitiveness in one of the world's quickest growing markets. The fear is that Saab would share technology pioneered by GM with its competitors. Saab could conceivably still move ahead with the deal, but losing GM's technology licenses and production contract would likely kill the brand just as swiftly as liquidation. It isn't immediately clear if Saab's parent company, Swedish Automobile, will try to revise the latest Chinese ownership proposal to GM's liking or attempt to go another way altogether.

Why is GM's approval a necessity? Despite having sold Saab, The General still holds preferential shares in the company. So, with the plan off of the table, what will Saab do to continue operations? The company isn't saying, but Reuters reports that Chief Executive Victor Muller said, "There's always Plan B." It seems like there's always a Plan B when it comes to Saab (and a Plan C, Plan D, Plan E, ad nauseam), but the company's factory has been idle since April, its employees have not been paid yet for November, and the brand's dealers are withering away.

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