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Ailing Saab automobile’s business is threaten with a Friday 14.00 deadline



  

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Thursday, 12 May 2011
The deadline for Saab Automobile's contract with Chinese automaker Hawtai to be concretised expires after 14 days, tomorrow. This means that if the two companies fail to agree to a deal between them, that would be very bad for Saab automobile once more as the company continues its race to the bottom.

The Swedish daily, Svenska Dagbladet (SvD) and other Swedish media networks have written that Saab's President, Victor Muller is reported to be planning new talks with the Chinese car manufacturer which Saab had earlier rejected, referring to people familiar with the automobile company.

Chinese Hawtai is also reported to have started being hesitated about the deal with Saab. As such if the companies do not agree at 14:00 on Friday then the deal will go burst.

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Hawtai’s delegation visited Trollhattan last week and according to SvD the Chinese became shocked at how bad the economic situation was in the stationary plant. The Chinese must have required a tough re-negotiation of the Framework Agreement between the companies. According to SvD Hawtai had considered in several options to withdraw from the deal.

The question is whether BAIC and Great Wall Motor would be interested in new talks with Saab. BAIC has already been very critical of the Saab because they think they are entitled to produce the 9-3 Saab model which is now being pushed to Hawtai by Saab.

Even within the prospective partner Hawtai it is stormy. The company has had six CEOs in eight years. Eight managers in the company's management resigned or was fired weeks before the agreement with Saab was signed on May 3 reports the Swedish business daily Dagens Industri on Tuesday, referring to Chinese newspaper reports.

Just as we were publishing the above article, new came in to us that the agreement between the Chinese Hawtai which wants to own a chuck of Saab and Spyker which owns Saab has been suspended, said Spyker. Discussions are reported to continue though about a collaboration.

According to words from Spyker, the agreement between the Hawtai and Saab owner Spyker has been repealed, writes Spyker in a statement.

They point that they are still set to launch a strategic partnership with Hawtai or any other Chinese party on manufacturing, technology development and deployment in China.

By Scancomark.se Team


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