Proposed rescue deal will not get crucial support of GM, spokesman confirms

The latest deal to rescue Saab will be vetoed by GM, a spokesman has confirmed. Earlier this week Saab's owners raised hopes of the company being saved, announcing they were in rescue talks with a Chinese bank and Chinese car company Zhejiang Youngman Lotus Automobile for investment.

But a GM spokesman told the Detroit News newspaper: "We have reviewed Saab's proposed changes regarding the sale of the company. Nothing in the proposal changes GM's position. We are unable to support the transaction."

Earlier this year, Youngman and Pang Da Automobile announced a deal to buy the brand, but the agreement hit trouble when former owner GM said it would not licence its technology to the new owner.

Saab has seven days to pay its workers their November salaries or it will face bankruptcy proceedings. Its administrator, Guy Lofalk, has admitted he is preparing to close the company down.

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