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The battle for the Saab continues. Muller acquires a new partner in China better than Hawtai



  

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Monday, 16 May 2011
Saab Automobile has acquired a new partner in China reported to have a better wallet and ready to pay faster than Hawtai. The sweetest aspect here is that the partner is a sales rather than a car manufacturer.

The new partner in China is known as Pang Da which seems to be more of a car dealer than a producer. They are ready according to reports, to pay €30 million at once to Saab. This time they do not need the same kind of regulatory approvals, according to Saab's chairman, Victor Muller.

Victor Muller said at a conference call on Monday that the state regulatory issues are much simpler in the case of Pang Da than Hawtai. The reason is that  “Pang Da is not a car manufacturer as such  making a deal is much easier according to the rules that governs companies in such industries in China and the European Investment Bank (EIB), "said Muller.

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About the agreement with Hawtai, which went burst, Saab’s boss, Muller said that "The success was hampered by a very unfortunate situation when Hawtai had problems with permit issues. The situation became untenable as such we had to let Hawtai go and ended up at square one again. "

Victor Muller says that the current arrangement is better than Hawtai affair.
"We now have the opportunity to sell Saab cars with a huge dealer network. Hawtai has also retailer, but is nothing compared to what Pang Da has in its distribution. "

Saab did not go for an agreement with Pang Da from the beginning because according to Muller, the focus was on finding a partner to start building cars in China. As that failed due to various regularity rules, a partner that would deal with sales matter was considered as another better option.

The next stage would be for Saab Automobile and Pang Da to seek modalities on how Saab cars can be produced in earnest in China.
"Pang Da is Subaru's biggest retailer in China and is also working with Subaru to launch local production in China,” according to Muller.

The first China – Saab car may be completed in 2013, provided that Saab and Pang Da find a suitable third company to use its assembly plant in the country (China).

€30 million, approximately Skr270 million, will leave Pang Da in a first step in the settlement to Saab’s account. For the money Pang Da wants approximately 1300 cars to be sold in China as from September according to reports.

And Saab is trying to get that money so as to get the Trollh�ttan factory start up again. Saab Automobile's President can not say when the plant will be reignited and running again. Money should however be in circulation around the company  and its sub contractors though.
By Scancomark.se Team


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