GM sued for $3 billion by Spyker over SAAB bankruptcy

One of the best known Swedish automotive brands, Saab Automobile stopped its production in May 2011 when it was no longer able to pay its employees and suppliers. The automobile brand went down to the bust in December, just two years after General Motor sold it to Spyker.

Chief Executive Spyker, Victor Muller, in an interview with Reuters said that General motor has already predicted it coming. He also added that GM has thought that Spyker will go down along with Saab but that actually didn’t happened.

Spyker lawsuit demands compensation for the unlawful actions that GM took to avoid race with Saab Automobile in Chinese market. GM’s action directly points to its intention to drive Saab into Bankruptcy.

When asked about the lawsuit filed, James Cain, GM spokesman told Reuters that it’s really hard to believe but we will tell anything only after seeing the lawsuit.

GM sued for $3 billion by Spyker over SAAB bankruptcy

Muller tried months to pull off the rescue deals with Chinese investors like china’s Zhejiang Youngman Lotus Automobile Co and Pang Da Automobile Trade Co Ltd and various other Middle Eastern and Russian investors. Muller told that the claimed price of $3 billion was based on the Saab’s worth if deal with Chinese firm Youngman had gone ahead.

Spyker had spent thousands of dollars as hearing fee preparing for the case over the past several months. The Spyker’s lawsuit is being funded by an anonymous third party who will have its share in any settlement, Muller said to the reporters.

General Motor operates in China in a partnership with state operated automaker SAIC Motor Corp Ltd last year jammed a deal with the two Chinese based investors Zhejiang Youngman Lotus Automobile and Pang Da Automobile Trade Co. GM insure that it will not stop supplying technologies and vehicles to Saab’s owners as it may run counter to its own shareholders. However Saab filed for Bankruptcy just months later and stopped making cars.

In its complaint filed in the US District court of Michigan, Spyker state that General Motor had earlier induced Saab to get into deal with the Chinese investors to save the company and later it unlawfully unplugged the whole deal out of the Saab guiding it all the way towards Bankruptcy.

The complaint also state that, the whole scene was General Motor’s plan to restrict any financial or investment deal that could protect Saab from liquidation. The whole scene was plot to eliminate Saab from the competition basically from the Chinese market.

Saab which has been manufacturing cars since 1947 was declared bankrupt with debts of about $1.93 billion or 13 Billion Swedish Crowns out of which about 2.2 billion is owed to the Swedish Debt Office.

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