Swedish car manufacturer Saab recently rejected an offer from Chinese investors looking to purchase the struggling firm. Pang Da and Youngman had in a previous deal put forward a plan in which they would take half of the firm for 215 million pounds; they subsequently made it clear they wanted full control for the same price.
The company did not have the funds required to carry on manufacturing, and requested that a court stop its re-organisation process. If this had happened, it is very likely the famous Swedish brand would have been declared bankrupt.
Bankruptcy had been called for by thousands of staff and suppliers – requests that were likely to be re-activated were put on hold during the reorganisation process.
As the prospect of bankruptcy became more and more likely, the number of investment sharks on the lookout for a great deal on what remains of Saab was growing. With the real possibility of outside investment, there appeared to have been a good chance that the carmaker would survive in some form.
Saab has suffered something of a financial car breakdown, and many Swedes will be saddened by the prospect of one of their commercial crown jewels falling into the hands of foreign investors. But as the automotive world changes on a daily basis, it becomes clear that as with so many other industries, the only way to survive is often to become part of a bigger group. Organsiations the size of Toyota and VW are unlikely to ever lack the funds to keep its various marques at the very top – a bitter fact that UK car brands have had to swallow much earlier than Saab.
Breakdown Cover from 
