agent Entrepreneur logo
MenuMENU
SearchSEARCH

G.M. to Cut Ties to Saab

November 7, 2011
2 min to read


DETROIT — General Motors said Monday that it had decided to sever its ties with the Swedish automaker Saab and its commitment to supply it with vehicle components and the 9-4X model because of the risks posed by Saab’s pending sale to Chinese companies.


“Although General Motors is open to the continued supply of powertrains and other components to Saab under appropriate terms and conditions, G.M. 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 G.M. shareholders,” said Jim Cain, a G.M. spokesman.

Ad Loading...


The statement represented a hardening in G.M.’s opposition to the proposed rescue plan for Saab and appeared to lengthen the odds for the brand’s survival. On Friday, G.M. said that it would be difficult to support a sale of Saab if it hurt G.M.’s competitive position in China and other key markets, reported The New York Times.


Swedish Automobile, the struggling company that owns Saab, said it would discuss General Motor’s objections with the company.


“I expect this to happen tomorrow. There are always alternatives but we only have limited time,” the chief executive of Swedish Automobile, Victor R. Muller, told Reuters in a text message.


Pang Da Automobile Trade and Zhejiang Youngman Lotus Automobile have struck a deal to buy Saab from Swedish Automobile, in what amounts to a rescue plan for Saab, which was formerly owned by G.M. The sale, however, awaits approval from G.M., which has preferred shares in Saab and has supplied it with crucial components. In addition, the Saab 9-4X, a crossover vehicle, is based on G.M.’s Cadillac SRX and is built at a G.M. plant in Mexico.


Separately, G.M. said that D.Nick Reilly, the head of its European business, would retire after 37 years with the company and be succeeded by Karl-Friedrich Stracke, chief executive of Opel/Vauxhall.

Ad Loading...


Mr. Stracke will keep his current title after he takes over as president of GM Europe on Jan. 1, G.M. said. GM Europe comprises Opel, Vauxhall, Cadillac Europe and Chevrolet Europe.

More Industry

Two white men's shaking hands
Industry•October 15, 2026

Penske Auto Group Deal a Record

The deal to take the dealership and transportation services company private sets a new pace for industry buy-sell transactions.

Read More →
Rows of cars parked in exterior lot
Industry•by Hannah Mitchell•October 8, 2026

War Toll a Damper on Used Auto Prices

Cox Automotive found wholesale depreciation to be elevated in September amid high fuel prices and this year's unusual hurricane season.

Read More →
Mechanic cleaning interior of engine
Industry•by Lauren Lawrence•October 8, 2026

Bridge the Maintenance Gap

With many drivers missing recommended maintenance, service departments offering transparency and efficiency have a better chance of reaching financially strained consumers.

Read More →
Ad Loading...
Ford F-150 truck rounding a curve
Industry•by Hannah Mitchell•October 1, 2026

California Store Has New Owner

The longtime dealership in the northern part of the state is known for robust fleet sales and has served the state capital for 115 years.

Read More →
crane lowering a pipeline into the ground
Industry•by Lauren Lawrence•October 1, 2026

BMW Plant Pursues Cleaner Energy

BMW Group Plant Leipzig has utilized hydrogen to help power its production since 2013, but a new pipeline is planned to take it to another level.

Read More →
Two dodge cars outside of dealership.
Industry•by Lauren Lawrence•September 17, 2026

Auto Affordability Inches Up

The latest Cox Automotive and Moody’s Analytics index shows a slight increase in new-vehicle affordability despite high prices.

Read More →
Ad Loading...
Five men smiling for photo in front of Honda car dealership.
Industry•by Lauren Lawrence•September 10, 2026

Ohio Auto Group Under New Ownership

After 79 years with the Schluter family, Mansfield Auto Group has been acquired by Missouri-based Clement Auto Group.

Read More →
Blue and white RV parked on beach facing the ocean.
Industry•by Lauren Lawrence•September 3, 2026

RV Group Expands Carolina Footprint

Blue Compass RV Columbia Northeast is the 13th RV dealership owned by Blue Compass in the Carolinas.

Read More →
Photo of two men and one woman on a discussion panel
Industry•by Hannah Mitchell•September 1, 2026

Agent Acumen

An Agent Summit panel of people who’ve been supporting auto dealers for years gave both timely and timeless advice for those starting out or mulling the prospect.

Read More →
Ad Loading...
Gloved hand holding two wrenches next to “Turn Overdue into Opportunity” Graphic
Industry•by Lauren Lawrence•August 27, 2026

Missed Maintenance Creates Opportunity

As families get back on the road and into daily school routines, service drives have an opportunity to capture customers who are behind on recommended vehicle maintenance.

Read More →
Ad Loading...