As part of Spyker’s capital-raising efforts for its ailing Saab brand, the Dutch automaker is entering into talks with Chinese automotive company Pang Da, and will have to rename itself as Swedish Automobile N.V. as part of the deal.
In return, Saab will get a $42 million cash payment, ostensibly to help pay Saab’s substantial debts. Saab CEO Victor Muller confirmed the payment, stating ”Pang Da’s advance payment and sales of imported Saab cars are not subject to approval from the NDRC. The first advance payment of EUR 30 million was received last Tuesday.”
Pang Da is expected to pay $91 million for a 23 percent stake in Saab. However, a Bloomberg report claims that China is hoping to slash the size of its auto industry, and government regulators may not give the go-ahead for the transaction, scuttling Saab’s salvation.