General Motors said Monday it would stop supplying the 9-4X SUV model to Saab if the insolvent Swedish automaker is taken over by two Chinese firms.

GM also said it would end technology-sharing licenses to Saab as well if the company is acquired by Chinese companies Pang Da and Youngman, though it would be willing to supply some components.

"Although General Motors is open to the continued supply of powertrains and other components to Saab under appropriate terms and conditions, GM will not agree to the continuation of the existing technology licenses or the continued supply of 9-4X vehicles to Saab following the proposed change in ownership as it would not be in the best interests of GM shareholders," the US automaker said in a statement.

The 9-4X is based on GM's Cadillac SRX, and the two models share looks, an assembly line and key components.

On October 28, the two Chinese firms proposed to buy Saab for 100 million euros ($137.6 million), and have pledged to inject 610 million euros to revitalize the carmaker.

But on Saturday GM warned it could block the sale, saying it "could negatively impact GM's existing relationships in China or otherwise adversely affect GM's interests worldwide."

The sale requires the approval of GM, which sold Saab in 2010 to Dutch firm Swedish Automobile (Swan) — then known as Spyker — for $400 million.

Saab has since then racked up more losses and was headed toward bankruptcy until the two Chinese companies made their offer.

GM spokesman Jim Cain said Saturday GM was "very much open" to additional discussions about the deal, he added.

"Given the time that has passed since the transaction was announced, we felt it necessary to communicate our position at this point in time," he said.

GM China sales up 10.4% in October
Shanghai (AFP) Nov 7, 2011 –

US auto giant General Motors said Monday its sales in China rose 10.4 percent in October from a year earlier to 220,412 units — a new record for the month.

In the first ten months of the year, GM and its joint ventures sold 2.11 million vehicles in the world's biggest auto market, the company said in a statement.

China, which overtook the United States to become the world's top auto market in 2009, has become increasingly important for global players such as General Motors and Volkswagen as demand in their home markets deteriorates.

Auto sales in China rose more than 32 percent annually last year to a record 18.06 million units, but the sector has since lost steam after Beijing phased out sales incentives such as tax breaks for small-engine vehicles.

The China Association of Automobile Manufacturers expects growth in auto sales for the whole of 2011 to be just five percent, down from an earlier forecast of 10 to 15 percent.

In the first nine months of the year, car makers sold 13.6 million vehicles in China, up 3.6 percent from the same period last year.