The Chinese are here to stay: They want to take over majority control of Saab automobile


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Monday, 13 June 2011
Despite depressing reports from various Swedish presses about Saab and the behaviours of their subcontractors, Saab automobile waxes on with its quest to grow and to build partnerships and relationships.

Today, Spyker which owns Saab introduces a new letter of intent with its Chinese Saviour, Pang Da on Monday. There was another introduction, a new deal with a company Zhejiang Youngman Lotus Automobile. The deal with Pang Da is about a strategic alliance to which include production of Saab cars in China. The three companies intend to invest together €245 million in the co-operation.

Youngman according to the letter of intent would be part owner of Spyker with 29.9 percent of the shares. The company will invest €136 million in the co-operation, according to a press release from Spyker.

The press release is clear also that Pang Da become a future member of Spyker with 24 percent of the shares, the share which Spyker gets €109 million injection.
The agreement is described as non-binding and requires approval from several authorities and third parties.


"We are confident that Youngman has all the qualities needed to produce the Saab cars in China, and that the cooperation is a success, "writes Victor Muller, CEO of Spyker.
"There is no official timetable. It is clear that we want to ensure that the process goes as quickly as possible. But we can not make predictions about the approval from Chinese authorities and others, "said Gunilla Gustav of Saab's information department, in response to Monday's statement from Spyker about a new deal with two Chinese companies: Pang Da and Youngman.

She adds that "this is great news, and shows that there is great interest in our future. But there are other funding projects as well," referring all the attempts being taken by the company to continues with efforts to secure funding for its activities.

An example of this search for funding from other fronts includes the attempt to sell and rent property factory in Trollh�ttan, "We are not ready to say more about that today, more than that it is still debated, " said her

Relating to the resumption of operation in the factory, which has been on stand still since last week, she said that "we estimate that we need this week to ensure a good flow of materials. So production is down this week. But I can not give any forecast of when it will resume."

The deal with Youngman requires a rights issue, so that the new money is brought into the company.
"I can not say anything about a timetable, "said Eric Geer, information chief for Saab.
He would not comment on the extent to which this arrangement affects Vladimir Antonov’s  plans for Saab.
Saab’s owner Spyker Cars shares rocketed up 15 percent on the stock exchange in Amsterdam after the company announced the agreement with Pang Da and Youngman.
By Team

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