RSS Feed Saab union asks Obama to pressure GM for licensing deal

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Filed under: China, Europe, Government/Legal, Plants/Manufacturing, GM, Saab, UAW/Unions



The door has not yet closed on Saab. Hoping for yet another 11th hour stay of execution, the defunct carmaker's chief union, IF Metall, has written directly to President Obama, asking him to intervene, according to Just-Auto. While on the surface, this may seem silly, it's actually rather clever, even if it has little likelihood of working.

With the United States government still owning 26 percent of General Motors, the Swedish union is hoping it can appeal to Obama to pressure General Motors into granting licenses to continue manufacturing Saab vehicles, according to the report. It's this sticking point that has torpedoed every attempt to forestall Saab's dissolution, as GM fears that were it to allow continued production of Saabs developed under GM's ownership, it would open up the possibility of intellectual property conflicts, particularly if a Chinese manufacturer that competes with GM's own Chinese partner, SAIC, acquires Saab.

You have to admire Saab loyalists, as they clearly have not given up hope. But in this case, they just don't have any other options: Unemployment in the Saab hometown of Trollhättan has hit 40 percent, according to the report.Saab union asks Obama to pressure GM for licensing deal originally appeared on Autoblog on Tue, 15 May 2012 16:01:00 EST. Please see our terms for use of feeds.



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[MasterOfBadTiming]

We should write a letter to President Obama, asking him to pressure GM to facilitate parts availability in the U.S. It's a consumer protection issue and also an issue of a company under partial ownership of the federal government, violating the law.

[freezedried74]

Originally Posted by MasterOfBadTiming

We should write a letter to President Obama, asking him to pressure GM to facilitate parts availability in the U.S. It's a consumer protection issue and also an issue of a company under partial ownership of the federal government, violating the law.

What law is being violated?

[Kurtisl8]

Originally Posted by freezedried74

What law is being violated?

I don't think any law is being violated. It's a grey area: part of the deal is that GM will slowly buy back it's shares from the US, at a premium (giving taxpayers more money). So the US is only a "temporary majority" shareholder, or owner.

[MasterOfBadTiming]

Federal law requires automakers to supply parts for all vehicles for the duration of the warranty period--as stated by a senior executive at GM in an interview (I linked to the article somewhere on this forum a while ago, so it's here somewhere if you want to find it). As MY2008 and some MY2007 Saabs are still within their GM warranty period and parts are not available, it would seem to me to be a violation of the law...but, of course, IANAL.

[lexington01]

No way this will go anywhere. Obama and his administration represent the US taxpayers. The basis of this appeal is that the US taxpayers own part of GM, so they should have a voice. GM has argued that releasing Saab tech would negatively impact GM's profitability and competitiveness in China. In other words, this would not be in the best interest of the US taxpayers (who, by the way, could care less if Saab survives).

[Skipshot]

Originally Posted by MasterOfBadTiming

It's a consumer protection issue and also an issue of a company under partial ownership of the federal government, violating the law.

What is the penalty for violating the law?

[BRob2]

Originally Posted by lexington01

No way this will go anywhere. Obama and his administration represent the US taxpayers. The basis of this appeal is that the US taxpayers own part of GM, so they should have a voice. GM has argued that releasing Saab tech would negatively impact GM's profitability and competitiveness in China. In other words, this would not be in the best interest of the US taxpayers (who, by the way, could care less if Saab survives).

Yup, and Friday the pentagon presented their annual report to Congress which reads in part "Chinese actors are the world's most active and persistent perpetrators of economic espionage. Chinese attempts to collect U.S. technological and economic information will continue at a high level and will represent a growing and persistent threat to U.S. economic security."

coupled with; An analyst added "espionage and aggressive acquisition of dual-use technology could accelerate China's military modernization".

If it were on their radar (which I highly doubt) the White House wouldn't push GM on this at all, but rather support the company's decision.

[kimvette]

Originally Posted by Skipshot

What is the penalty for violating the law?

Getting bailed out and not having to repay loans, and pulling the money to do so out of taxpayers' pockets without consulting with them. That's what.

[SlickSAAB]

That's What? Well.... Thats the same thing that has been going on for the lest 4 years now LOL. It seems the US bailed out so many companies to watch them fall back down. But when they look at SAAB a buisness that i feel will be fine once they are helped out of this spot they will say no. They only help if they know they will get something in turn. But thats just my opinion.