AM Online

Chinese investors still looking to buy Saab

Saab could still be bought by Chinese investors despite the deadline for an acquisition deal  expiring this week.

Chinese companies Pang Da and Youngman are still in negotiations with Saab about putting a possible deal together.

Saab’s former owners General Motors need to approve the deal. GM has said it will block the transfer of technology licences to the two Chinese firms if they buy all of Saab.

A Saab spokeswoman said: “GM needs to approve the deal if we are going to continue to build and sell the current Saab line-up.

"GM holds the technology licences with those cars. We do need them to agree to it if we are to continue the business and not just wait for future cars.”
 

Saab signed a memorandum of understanding with its Chinese partners at the end of October for the sale and purchase of 100% shares of Saab Automobile and Saab GB for €100 million (£88m). This MoU was valid until November 15.

Swedish Automobile would have actually made a profit from the the €100m deal as it bought Saab from General Motors for €53m. However, the company has invested €120m during it’s less than two years of ownership which amounts to a €70m loss overall.

Saab GB has said it’s still “business as usual” in the UK. Dealers have access to new and used car stock and the business has launched marketing campaigns offering free servicing deals on both new and used cars to help boost confidence.

There’s still no estimated date for when production will restart, but Saab GB will continue to operate the business in the UK as normal and has sufficient funding in place to meet all creditor obligations and will continue to pay all employees, dealers and suppliers.

Saab is offering UK customers two years’ free servicing on all approved used Saabs to attract more business into showrooms.

 



If you are not a registered user your comment will go to AM for approval before publishing. To avoid this requirement please register or login.

Comment as guest


Login  /  Register

Comments

No comments have been made yet.