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GENERAL MOTORS

Continued uncertainty over fate of Saab

Saab Automobile's future remained in the balance on Monday as the head of General Motors signalled the wind-down of the Swedish carmaker was moving ahead, while other sources said that discussions continue with at least one suitor.

Continued uncertainty over fate of Saab

GM is still talking to Dutch sportscar maker Spyker about the sale of Saab after beginning a wind-down of operations last week, a source familiar with the talks said on Monday.

Spyker is “the only one” with an “attractive” offer, the source said, adding that additional information may be available later in the week.

A GM spokesman said there was no new information on Saab after Friday’s announcement of “an orderly wind-down” of its Swedish unit.

Meanwhile, GM chair and acting CEO Ed Whitacre said on Monday that Saab was to be shut down.

“We’re closing down Saab,” he told reporters at the Detroit auto show, according to the Reuters news agency.

“We really haven’t decided to do anything other than close down Saab.”

Speaking to the TT news agency, however, Whitacre signaled that GM would sell if “someone with a lot of money came quickly”.

When asked for specifics, the GM CEO elaborated.

“Give us $450 million dollars and we’re in a different situation,” he told TT.

GM said on Friday it would consider any late proposals for the brand even as it began shutting down operations. GM hired the consulting firm AlixPartners “to supervise the orderly wind-down of Saab.”

The US auto giant, in the process of a massive restructuring after bankruptcy last year, said the process for Saab is expected to take several months.

Union leaders in Sweden blasted GM for moving to close the company at the same time as it is evaluating bids for the loss-making brand.

Saab employs 3,400 people in Sweden and is among the brands being shed by GM as part of a massive restructuring effort that began in 2005 and accelerated last year when the largest US automaker went bankrupt.

Analysts have warned that some 8,000 jobs could be lost with Saab’s closure.

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SAAB

Spyker to continue fight for GM Saab pay out

Dutch car builder Spyker on Thursday said it will appeal the dismissal of its $3.0 billion claim in a US court against General Motors, which Spyker accuses of deliberately bankrupting Sweden's Saab in 2011.

Spyker to continue fight for GM Saab pay out

“Spyker… shall appeal the ruling of the District Court for the Eastern District of Michigan,” in favour of GM, the plaintiff car group Spyker said in a short statement from its headquarters in the central Dutch town of Zeewolde.

It did not give any further details.

Spyker filed a lawsuit in August claiming $3 billion in damages.

It alleged that GM criminally interfered in an operation that could have made it possible for Saab, which Spyker bought in 2010, to restructure and stay afloat, because the US automaker wanted to dominate the Chinese market.

Saab, a former GM subsidiary, filed for bankruptcy in December 2011 after teetering on the edge of the abyss for almost two years. A last-ditch bid to raise funds in China, with the Youngman group, was blocked by GM over issues concerning the transfer of technology.

Chinese carmaker Youngman had long been interested in buying Saab and tried

to snap it up before it declared bankruptcy — but its efforts were stymied by Saab’s former owner, GM, which balked at transferring the necessary technology

licences.

At the time, Spyker’s chief executive Victor Muller said that the $3 billion claim in compensation represented the value which Saab would have represented had the deal with Youngman gone through, but analysts at the time were sceptical whether the suit would succeed.

GM in its response to the claim denied any criminal action or intent, saying Saab had granted it a contractual right to agree, or not, to the transaction proposed by Spyker.

The US carmaker sold Saab in 2010 to Spyker. A deal reached parallel to the sale allowed Saab to keep using GM technologies and keep production going, but allowed GM to stop the arrangement if Saab changed hands.

GM has maintained that Spyker bought Saab “knowing its financial history, and subject to terms spelled out unambiguously in the arrangements attached to the complaint.”

“Those agreements include clear contractual limitations in the future use of GM’s technology, and on the transfer of technology to others,” GM said in a document, filed before the court a month after Spyker filed the claim.

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