GM could cut business with Saab

NEW YORK (AFP) ― General Motors said Monday it would stop supplying the 9-4X SUV model to Saab if the insolvent Swedish automaker is taken over by two Chinese firms.

GM also said it would end technology-sharing licenses to Saab as well if the company is acquired by Chinese companies Pang Da and Youngman, though it would be willing to supply some components.

“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,” the U.S. automaker said in a statement.

The 9-4X is based on GM’s Cadillac SRX, and the two models share looks, an assembly line and key components.

On Oct. 28, the two Chinese firms proposed to buy Saab for 100 million euros ($137.6 million), and have pledged to inject 610 million euros to revitalize the carmaker.

But on Saturday GM warned it could block the sale, saying it “could negatively impact GM’s existing relationships in China or otherwise adversely affect GM’s interests worldwide.”

The sale requires the approval of GM, which sold Saab in 2010 to Dutch firm Swedish Automobile (Swan) ― then known as Spyker ― for $400 million.

Saab has since then racked up more losses and was headed toward bankruptcy until the two Chinese companies made their offer.

GM spokesman Jim Cain said Saturday GM was “very much open” to additional discussions about the deal, he added.

“Given the time that has passed since the transaction was announced, we felt it necessary to communicate our position at this point in time,” he said.