Saab To Reach Deal With Chinese Investors By End Of this Year

Saab To Reach Deal With Chinese Investors By End Of this Year

After more than a year of struggle under Spyker’s management, many thought Saab would have succumbed to its financial woes already, yet somehow the Swedish automaker has been able to pull a few tricks out its bag just as it would seem that its luck had run out.

The latest reports indicate that Saab’s two Chinese suitors, Pang Da Automobile Trade Co. and Zhejiang Youngman Lotus Automobile Co., are aiming to complete an investment deal on Saab by the end of 2011. According to the lawyer of Pang Da Automobile, Peter Goes, “The deal can be closed before the end of the year. They [Pand Da] are most impatient on getting production restarted. The main interest of our client is getting the cars into China.” Getting production restarted is especially crucial as Saab’s Trollhattan assembly plant is currently at a halt due to money owed to their suppliers and workers.

The final obstacle hindering Pang Da and Zhejiang’s $245 million Euro deal is obtaining approval from the Chinese government. As the automotive industry within China balloons, the Chinese government has been reluctant to let it expand much further, at least not without their supervision.

When given the green light, Pang Da and Zhejiang will receive rights to distribute Saabs, and are in development for plans to assemble Saabs in China as well.

[Source: Reuters]