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SWEDEN: Saab sends GM new proposals as supplier meeting put back

By Simon Warburton | 21 November 2011

Saab has postponed a meeting with its numerous suppliers to discuss payment terms as the automaker concentrates on securing former parent General Motors' approval for any change of ownership control.

The meeting had been scheduled for tomorrow (22 November) to see how an estimated EUR150m (US$202m) of supplier debt could paid, but Saab insists this was a "preliminary date" and was "never fixed."

Saab also says it has sent a new proposal to GM in a bid to convince the US automaker to continue with existing technology licences and the supply of 9-4X crossover vehicles. GM declined to give its approval for Saab plans to be taken over 100% by Chinese companies Youngman and Pang Da.

"There is communication of course between us, the Chinese and GM," a Saab spokesman told just-auto. "A proposal has been sent - it is a new proposal. "We have to find...a structure that would fit everybody."

Saab also has to pay its nearly 4,000-strong workforce next week following the ending of the Swedish government's obligation to pay salaries.

"We know what our financial commitments are," said the Saab spokesman. "We have to follow this because we are in reorganisation, so we have to follow the frame of the law - that is also the task of the administrator."

A provisional memorandum of understanding with Youngman and Pang Da expired last week, although Saab said this could be extended.

It is not yet known when GM will reply to Saab's latest proposal.