Swedish Automobile CEO Victor Muller told Reuters that it would have to go back to the drawing board after General Motors rejected its proposed rescue plan where it would be sold to Chinese investors Pang Da and Youngman Lotus.
Court-appointed administrator Guy Lofalk told Reuters that GM’s decision may just be one bump in the road as negotiators try to find a solution to save the automaker.
GM owns preference shares of Saab and supplies the automaker with powertrains as well as the Saab 9-4x crossover that it builds alongside the Cadillac SRX in Ramos Arizpe, Mexico. The automaker offered to continue to supply Saab if the company paid $500 million to the Detroit automaker.
“I had warned the Chinese that GM would have a mega problem with any other deal other than the original 54 percent stake in Swedish Automobile. Unfortunately, I was right,” Muller told Automotive News. Muller engineered the purchase of Saab from GM in 2009 and remains an investor in Swedish Automobile.