Pang Da Seeks Permission to Invest in Saab

Nearly a week after Swedish manufacturer Saab announced that the name of its savior knight is Pang Da, the Chinese company has begun talks with state authorities, including the National Development and Reform Commission (NDRC), to get the permission to invest in Spyker, and subsequently in Saab.

As announced a week ago, Pang Da will become a shareholder in Spyker, controlling 24 percent of the company. On the Saab front, Pang Da, one of the biggest car dealership operators in China, committed to purchasing EUR30 million worth of cars from Saab, to be distributed in China.

“The initial procedure discussions we have had with the NDRC were done in good spirit and all parties have a good understanding of the process going forward,” said Pang Qinghua, Pang Da CEO.

“We remain convinced that we will be able to get all the necessary documentation and approvals to successfully complete the transactions and look forward to our visit at Saab Automobile's headquarters in Trollhättan, Sweden, later this week."

The gamble Saab is taking by partnering with the Chinese car retailer expands far beyond the need for money that has led to this outcome. Taking advantage of its position, Pang Da secured a deal to manufacture Saab cars in China, a reality that will come into being sometime within the next three years.

The agreement between the Swedish and the Chinese will lead to the setup of three different businesses in China: one will be in charge with the distribution of Saab vehicles, the other with the production of Saab branded vehicles, and one with the production of a local sub-brand of Saab.