CHENNAI: It was the spanner in the works that ultimately dissuaded a host of potential investors - including India's Mahindra & Mahindra - from buying troubled Dutch car maker Saab. And now, Saab's current owner Spyker has gone to court over it. Spyker has sued General Motors for $3 billion, accusing the American giant, once a former owner of Saab, from botching up potential buyout deals and driving Saab into bankruptcy in the process.
While Spyker was looking for potential buyers for Saab - and several Chinese companies and the Indian major were in the fray - GM had consistently refused to part with its technology IPR. Indeed the biggest point of contention in the Saab bid was the question of IPR and whether former owner General Motors would relent on that issue. Sources said GM made it clear that it would not give IPR clearance to any buyer for the 9-4 and 9-5 models which is what scuppered the first deal with Chinese auto major Zhejiang Youngman Lotus Automobile. The Chinese company later put in a revised offer of 3 billion crowns ($446 million) for Saab which also did not pass muster with the receivers.
Saab was declared bankrupt last December after owner Swedish Automobile (earlier called Spyker) announced it could no longer keep it afloat. Spyker bought Saab from GM two years ago for $400 million. It attracted the interest of several Chinese auto majors but no conclusive deal could go through due to the IPR impasse with GM. Although M&M has, till date, not officially announced why it did not go ahead with a bid for Saab, analysts say the IPR issue was the biggest hitch and without that clearance there simple wasnt enough to attract M&M which was at once stage considered one of the strongest in the race for Saab because of its ability to turn around the once-bleeding Korean auto company Ssangyong.
While Spyker was looking for potential buyers for Saab - and several Chinese companies and the Indian major were in the fray - GM had consistently refused to part with its technology IPR. Indeed the biggest point of contention in the Saab bid was the question of IPR and whether former owner General Motors would relent on that issue. Sources said GM made it clear that it would not give IPR clearance to any buyer for the 9-4 and 9-5 models which is what scuppered the first deal with Chinese auto major Zhejiang Youngman Lotus Automobile. The Chinese company later put in a revised offer of 3 billion crowns ($446 million) for Saab which also did not pass muster with the receivers.
Saab was declared bankrupt last December after owner Swedish Automobile (earlier called Spyker) announced it could no longer keep it afloat. Spyker bought Saab from GM two years ago for $400 million. It attracted the interest of several Chinese auto majors but no conclusive deal could go through due to the IPR impasse with GM. Although M&M has, till date, not officially announced why it did not go ahead with a bid for Saab, analysts say the IPR issue was the biggest hitch and without that clearance there simple wasnt enough to attract M&M which was at once stage considered one of the strongest in the race for Saab because of its ability to turn around the once-bleeding Korean auto company Ssangyong.
Edited By Cen Fox Post Team
