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,
Remember back in your college days when the more extreme among the student activists would stage sit-ins to protest this issue or that? Well, the practice has jumped from the university administration building to cyberspace, and in the process, it's made its way into the automotive sphere.
Yesterday, Saab announced that its request for government protection was denied by a Swedish court, citing that the court feels that the automaker's proposal for a voluntary reorganization would not work. Furthermore, it is unclear to the court whether or not the proposed €245 million from China's Pang Da and Youngman companies will be enough to fix the Swedish automaker's financial woes (assuming the Chinese government approves this equity contribution). Saab disagrees with the court's int
Seems that Saab just can't catch a break. Yesterday, the Swedish automaker filed for government protection, citing that if approved, the company would undergo a voluntary reorganization. Now, a court has rejected Saab's application for protection.