Bank of China Tipped as Latest Saab Savior
Although Saab has been struggling for the past year, don’t bet against it. All but doomed when GM sought to stop Saab’s deal with the Chinese Zhejiang Youngman Lotus Automobile Co. and Pang Da Automobile Trade Co., Youngman is now proposing a new deal with Bank of China, the country’s fourth largest bank by market value.
The deal with Bank of China, which replaces Pang Da, will allow the bank to own just under 50 percent of Saab. As GM threatened to halt the assembly of the Saab 9-4X crossover as well as halting the supply of components and technology if Youngman and Pang Da succeeded their acquisition bid, the substitution of Bank of China should help pave the way for Saab’s acquisition approval.
Currently, Saab is under court protection from Swedish creditors as its plant has not produced a car in months due to unpaid salaries and bills.
GALLERY: Saab 9-4X
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