After many weeks of wrangling, Saab Automobile has signed a deal with the two Chinese auto firms Pa Dang and Youngman, in an agreement worth around 88 million pounds. A memorandum of understanding has been signed with the two companies, following a period in which Swedish Automobile, the owner of Saab, had rejected joint takeover bids from them.
Saab is simultaneously attempting to avoid bankruptcy. Providing Saab remains in voluntary re-organisation in the Swedish courts, the agreement will be valid until November 15th.
In a statement from Saab’s parent company, Swedish Automobile, the firm said: "An important consideration for Swan (Swedish Automobile) to enter into the transaction is the commitment of Pang Da and Youngman to provide long term funding to Saab Automobile."
Saab’s Chief Executive Victor Muller – and majority shareholder in Swedish Automobile – was very positive about the deal, pointing out that much more than the previously agreed 240m euros will be invested in the company, so Saab can re-start production and ensure its research and development arms are able to expand the brand’s portfolio.
The new agreement has resulted in Guy Lofalk (the man in charge of Saab’s administration process) having withdrawn an application to court which would have stopped the process of re-organisation. Lofalk had previously stated that Saab had no money to continue operations.
As part of the new development, thousands of suppliers and staff will now, it is thought, be paid the monies they are owed.
American car maker General Motors sold the Saab marque to Swedish Automobile (preciously named Spyker) in January of 2010.
Victor Muller, whose job it was to perform the equivalent of a complex vehicle recovery operation on the 74 year old brand – in whatever way he could – said of his mission: "I think I achieved it."
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