Last week, Chinese automotive manufacturer Hawtai pulled the pin on a 150 million euro deal which would have rescued Saab from financial hardship, and allowed it to continue production at its Trolhattan plant in Sweden. Fortunately, Pang Da Automobile Trade has just signed a 45 million euro deal with Saab that should shore up its future.
Pang Da is China's largest vehicle distributor and has announced it will invest 45 million euro (AU$60 million) into Saab Cars, and plans to take a 24 percent stake in Spyker Cars (owner of Saab) with a further 65 million euro deal in the near future. Spyker boss, Victor Muller, recently said,
"It still requires a lot of work before this 65 million is in our bank account, to get the permits. When we have the 65 million euros, it will be enough for the mid-term, or a year."
The deal is said to be more secure than the previous attempts with Hawtai though as Pang Da is a distributor rather than a manufacturer. Reports say approval of the investment is much more likely to go ahead.
If all goes to plan, the deal will supply enough funds for medium-term relief which is expected to help kick-start Saab production at its plant in Trolhattan, Sweden. The plant has been out of action for more than a month.
We certainly hope the deal sticks this time.