China Gets Its Hands on Saab
Just when all rumors pointed to Saab failing to come up with a Chinese branded last minute solution, the car maker announced it would partner with the country's largest publicly traded automobile distributor, Pang Da Automobile Trade, for both the sale and production of Saab vehicles.
Saab, Spyker and Pang Da will set up three different businesses in China: one will be in charge with the distribution of Saab vehicles, the other for the production of Saab branded vehicles, and one with the production of a local sub-brand of Saab.
The great news for Saab, financially speaking, is that Pang Da will pay EUR30 million to purchase the cars it will sell through the 1,100 dealerships it owns in China, thus considerably helping the Swedish company get back on its feet. An extra boost for the cash-strapped Saab are the EUR65 million Pang Da will pay for 24 percent of Spyker, the owner of Saab.
"Both parties are confident that this partnership allows Saab Automobile and Pang Da to create a strong business, initially in the distribution and subsequently in the manufacturing of Saab vehicles in China,” said Victor Muller, Spyker CEO.
“Pang Da taking a substantial equity stake in Spyker underlines their confidence in our plans for the future and China in particular."