Just days after announcing that he had rebuffed a full takeover of Saab by Chinese investors Zhejiang Youngman Lotus Automobile Co. and Pang Da Automobile Trade Co., company CEO Victor Muller has proven that he can change his tune, in a hurry. Swedish Automobile N.V. has announced the signing of a memorandum of understanding with both Pand Da and Youngman to sell the Swedish automaker to the two Chinese companies, in its entirety.
The deal announced is for the total sale of Saab for the sum of $100 million Euros, or roughly $142 million and is contingent upon Pang Da and Youngman funding the automaker.
The memorandum of understanding is not a finished deal, but it will stand until November 15, by which point the final transaction is expected to be completed. Knowing Saab’s tumultuous history, however, this roller coaster of a business story is likely far from over.
This move represents the latest push by the Chinese to break into the global automotive market. In July of 2010, the Chinese government approved a deal that saw the sale of Volvo (the other Swedish automaker) to Geely for the sum of $1.8 billion.