American car manufacturer, General Motors has expressed their displeasure over Dutch car manufacturer, Swedish Automobile NV selling 100% stake of SAAB Automobile AB to two Chinese companies, Zhejiang Youngman Lotus Automobile Co. and Pang Da Automobile Trade Co.

SAAB Automobiles was previously owned by GM which they later sold to Spyker Cars (now Swedish Automobile NV) in 2010. GM still provides licensing for its technologies to Saab Automobiles, but threatens to withdraw licensing if Swedish Automobile NV goes ahead and sells Saab Auto to the two Chinese companies.

Swedish Automobile NV signed a Memorandum of Understanding with the two Chinese companies, Zhejiang Youngman Lotus Automobile Co. and Pang Da Automobile Trade Co., to sell 100% shares of SAAB Automobiles AB for a price of €100 million ($137.6 million).

According to a clause in the MoU, apart from Chinese and Swedish authorities, the deal needs authorization from GM as well, before the actual sale is made. Mr Victor Muller, Chief Executive, Saab Automobile, stated, "I predicted this was going to be the biggest hurdle and unfortunately I was right."

In a statement released by Saab earlier this week, they stated, "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 interest of GM shareholders."

Source:Rushlane