GM Blocks Technology In Proposed Saab Sale

The company would yank technology from its old subsidiary if two Chinese companies complete the purchase at $140 million.

STOCKHOLM (AP) -- General Motors Co. says it won't allow two Chinese companies to use its technology if they go ahead with a planned purchase of ailing car maker Saab Automobile, a former GM unit.

The announcement Monday raises doubts about a rescue plan for the ailing Swedish brand, which is being reorganized under bankruptcy protection after running out of cash to pay suppliers and staff.

Zhejiang Youngman Lotus Automobile Co. and Pang Da Automobile Trade Co. agreed last month to buy Saab from current owner Swedish Automobile for €100 million (about $140 million).

GM, which sold the loss-making brand in 2010, said it won't agree to continue existing technology licenses because "it would not be in the best interests of GM shareholders."

More in Home