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Why did the The Chinese company Hawtai back – off from Saab part ownership deal?



  

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Thursday, 12 May 2011
Saab is a very difficult portfolio to deal with and it looks like the company had been cursed from many years ago. Just when it was though that some light of grace will shine on the sick company, with appearance of the Chinese on the scene, it turns out that an agreement could not be reached.

The story just a few minutes ago is that agreement between the Chinese Hawtai and Saab owner Spyker has been quashed according to Spyker which tried to make it sound soft by saying that the deal has been suspended. The truth is that the Chinese lost their interest in the company when their officials visited Saab last week to discover how poor the company was and how stagnant its factories have been for more that a month now.

The termination of this contract cast shadows on hopes that production in the Saab factory in Trollhattan, near Gothenburg in Sweden could resume as had been anticipated.

To keep the hopes of the company alive, its charismatic boss has said that Spyker would launch a strategic partnership with Hawtai or any other Chinese party on manufacturing, technology development and deployment in China.

According to a press release from the Spyker, Saab could not provide all the documentations they had agree to provide to Hawtai and therefore that the agreement could not be completed. The parties will continue discussions on collaboration in other ways and areas.

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Spyker, meanwhile continues to seek short-and long-term funding from several Chinese players.

According to Spyker the botched agreement with Hawtai has to do with the fact there was no broad agreement with all the owners behind the Chinese company.

On the side line, talks with European Investment Bank (EIB) continue on how the company can use its property as collateral to get short – term financing. The property is currently used as collateral by the Swedish government in its guarantees associated with EIB loans for Saab.

Spyker hope that this could make it have some €29 million so that the company can maintain some sustainability.
The market reacted swiftly as shares of Saab’s owner,  Spyker Cars plummeted by about 8 percent on the Amsterdam Stock Exchange following news that the agreement with Hawtai had been botched.

The Chinese media had been very hostile to Saab when news went around that Saab had entered into an agreement with Hawtai. They said that Saab was a light weight with no market penetration anywhere. They said that Saab has no leadership in technology and that strong technology leaders are currently struggling and queuing for Chinese acceptance. They did not see how the Chinese government department that approve collaboration with foreign companies in China to approve the deal.

Therefore the Chinese press saw no future in the collaboration between Saab and Hawtai. This might have made Hawtai to tear off its contract signed earlier with Saab.
By Scamncomark.se Team


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