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GENERAL MOTORS

Thousands of drivers in Saab support road rally

More than 2,000 Saab drivers filled a several kilometre stretch of road in the Swedish automaker's home town on Sunday in a demonstration of support for the beloved brand in the face of a decision by owner General Motors (GM) to wind it down.

Thousands of drivers in Saab support road rally

“It’s hard to know exactly how many cars there were, but an estimate we’ve made puts the number at 2,500,” Claes Robertsson, the head of Saab Turbo Club of Sweden, a group of Saab admirers, told AFP.

Robertsson said both Saab employees and brand enthusiasts had attended the rally, in which drivers from Germany, Denmark, Norway, the Netherlands and Britain also took part.

Swedish news agency TT said the demonstration started at the Saab museum in its southwestern Swedish hometown of Trollhättan and ended at the Saab factory.

According to local police, the four kilometer stretch was entirely filled by Saab cars, TT reported.

General Motors announced on December 18 that it would wind down the brand which has barely turned a profit during two decades under GM ownership, but several groups have since made last-ditch bids for it.

They include Dutch sportscar maker Spyker, a group comprised of Formula One boss Bernie Ecclestone and Luxembourg investment firm Genii Capital, and a Swedish group fronted by the former chief executive of German truck manufacturer MAN and a former politician.

Amid media reports that Spyker’s was the only bid still being considered, Genii-Ecclestone negotiator Lars Carlström told AFP Sunday his group was still in the running to acquire Saab from GM.

Saab, which employs 3,400 people in Sweden, is one of four major brands being sold by GM as part of a massive restructuring 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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GENERAL MOTORS

US judge rejects Saab bankruptcy lawsuit

A US court has dismissed a $3 billion lawsuit by previous Saab owner Spyker alleging that US auto giant General Motors (GM) was responsible for causing the Swedish carmaker's bankruptcy.

US judge rejects Saab bankruptcy lawsuit

The Dutch sports car maker filed suit against GM in August 2012, claiming the US automaker interfered in a transaction that would have allowed Saab to restructure and stay afloat because GM wanted to dominate the Chinese market.

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

“GM’s actions had the direct and intended objective of driving Saab Automobile into bankruptcy, a result of GM’s tortiously interfering with a transaction… to restructure and remain a solvent growing concern,” Spyker said in the statement at the time.

GM filed a motion to have the lawsuit thrown out and on Monday a federal judge in Detroit agreed.

“General Motors had a contractual right to approve or disapprove the proposed transaction,” U.S. District Court Judge Gershwin Drain said in a hearing in Detroit, according to the Reuters news agency.

“The court is going to grant the motion to dismiss the matter.”

Spyker CEO Victor Muller refused to say whether or not he would appeal the ruling.

“We’ll consider an appeal as soon as soon as we have the written ruling,” Muller told the TT news agency via text message.

Muller has previously explained that the $3 billion figure associate with the lawsuit corresponds to what Saab would have been worth had GM not scuttled the deal with Youngman.

TT/The Local/dl

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