News

Saab Finds New Chinese Partner, Crafts Deal Worth $92 Million

Saab may finally see the light at the end of the tunnel, thanks in large part to Pang Da, a Chinese auto distributor. Saab-Spyker announced today that the two companies have reached a deal to form a new joint venture, which provides Saab with a much-needed cash infusion to the tune of €65 million ($92 million USD).

The agreement between the companies will total €65 million (just under $92 million at current exchange rates) once the deal is complete, but releases from Saab-Spyker proclaim the completed transaction could potentially bring the automaker nearly $155 million.Those figures are far short of the estimated $222 million Saab would have received in a stillborn deal with the Hawtai Motor Group, but are still welcome nonetheless.

Pang Da is China’s largest automotive distributor, and the majority of this proposed deal involves — what else? — distributing Saab vehicles in China. Pang Da has already placed an order for €30 million ($42.4 million) worth of vehicles, and has agreed to place a €15 million ($21.2 million) order at a later date.

Additionally, Saab, Pang Da, and a yet-to-be-named third party will also enter into a joint venture to distribute and manufacture Saab vehicles in China, and also create a Chinese-market sub-brand. The joint venture will be split with Saab owning half, and Pang Da and its partner in control of the other 50-percent stake. Pang Da will also take a 24-percent equity stake in Spyker and gain the option of a seat on the company’s supervisory board and/or Saab’s board.

The first sale of vehicles is pending transaction approval, but executives on both ends expect few issues in the approval of this deal. Since Pang Da is a car distributor, the act of selling Saabs won’t require intense scrutiny by the Chinese government. That said, a number of government banks do need to approve the transfer of funds to make this idea reality.

Source: Spyker, Automotive News (Subscription required)

Comments
We’ve Temporarily Removed Comments

As part of our ongoing efforts to make AutomobileMag.com better, faster, and easier for you to use, we’ve temporarily removed comments as well as the ability to comment. We’re testing and reviewing options to possibly bring comments back. As always, thanks for reading AutomobileMag.com.

Buying Guide
Powered by Motortrend
2011 Saab 9-5

2011 Saab 9-5

MSRP $48,030 Turbo6 Sedan

EPA MPG:

17 City / 27 Hwy

Cargo (Std/Max):

NA / 25.4 cu. ft.

Seating:

5/5