The statement represented a hardening in GM’s opposition and called into question the survival of a niche brand beloved by enthusiasts for its early use of technology like turbocharging and its distinctive Scandinavian designs.
Victor Muller, chief executive of Saab’s embattled owner Swedish Automobile, said GM’s rejection of the proposed rescue plan would mean that negotiators would have to “go back to the drawing board” with Chinese investors Pang Da Automobile Trade Co. and Zhejiang Youngman Lotus Automobile.
A deal for the Chinese companies Pang Da and Youngman to rescue Saab had been awaiting approval from Chinese government officials.
Muller said he expected to speak to the Chinese companies on Tuesday after the GM rejection.
GM, which operates in China in a partnership with state-run automaker SAIC Motor Corp. Ltd, said it had concluded that continuing to supply vehicles and technology to Saab’s new owners would be against the best interest of its own shareholders.
“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 interests of GM shareholders,” GM spokesman Jim Cain said in a statement.
On Friday, GM had said that it would be difficult to support a sale of Saab if it hurt GM’s competitive position in China and other key markets.
The proposed rescue deal for Saab had to be approved by GM, which still has preference shares in Saab and has supplied the Swedish auto brand with crucial components.
It would also have required approval from BMW AG. The German automaker had agreed to supply Saab with 1.6-liter engines for future vehicles.
Saab has lurched from crisis to crisis in the past year and has not produced a car in months. The company was given court protection from creditors in Sweden in September. It was the second time Saab received protection from creditors in two years.
Pang Da operates auto dealerships in China. Youngman produces commercial vehicles, including buses and trucks, and sells cars under the Lotus brand.
Shares in Swedish Auto, which includes both Saab and Spyker brands, have lost almost 90 percent of their value since the start of the year.
Saab has sold just under 5,000 vehicles in the United States this year through October. By contrast, Volvo, a competing Swedish auto brand, sold about 57,000 vehicles in the same period.
Ford Motor Co. sold Volvo to Chinese automaker Geely in 2010.
