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Saab in very deep problems as Pang Da makes it clear that their agreement did not extend to reorganisation

Wednesday, 12 October 2011
The chairman of the Chinese company, Pang Da, which supposed to be in a growing and thriving relationship with Saab automobile has declared that the contract with Saab Automobile is not holding because Saab decided to carry out re-organisation.

According to various Swedish media sources, the boss of Pang Da said that because of the re-organisation, they are weary of the deal.
The Chairman, Pang Qinghua, is said to have provided the comment to reporters in connection with an industry seminar in Chengdu on Wednesday. He added that the Chinese side has not yet submitted a proposal to the Chinese government on Saab deal, writes Reuters.

“We do not understand at all what this might involve. We have met Pang Da as late as yesterday, and everything is on track. There must be some misunderstanding. There is something not right here,” says Gunilla Gustav of Saab's information department, according to Swedish daily Dagens Nyheter.

After the collapse of the negotiation with the Chinese dealer Hawtai, Pang Da came in and was seen as a new Chinese lifeline and saviour of Saab Automobile. Representatives of the company visited Saab centre in Trollhättan, Sweden where production was temporarily re-launched on 27 May this year.

Pang Da ordered large volumes of cars from the factory, about 2,000 vehicles. Total paid Skr45 million in advance against the promise of delivery from September this year, something that Saab could not live up to.

Together with China Youngman, Pang Da would invest further equivalent to Skr2.2 billion in Saab's owner company, Swedish Automobile. Pang Da would thus have a stake of 24 percent.

Developments around Saab Automobile are still difficult to assess. "Everyone stands by its commitment, including Youngman" said Saab CEO Victor Muller to Swedish business daily Dagens Industri after Tuesday's meeting with Chinese stakeholders.

Youngman would have paid Skr640 million two weeks ago but have not yet done so. According to Saab, the Chinese government would give the green light on 14 October. That, however, is to be seen.
On the whole, what is being observed now is that all the Chinese companies that were thought to be in working terms with Saab are all denying that they want to operate with the company. They feel that Saab is too vulnerable according to experts in the Chinese media.
By Scancomark.se Team

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