Second Chinese investor comes to Saab's rescue
Saab has agreed a deal that will inject a badly-needed €110m (£96m) into the company.
Pang Da Automobile Trade Co has stepped in to take the place of Hawtai, which pulled out of a similar deal last week. Pang Da will get a 24 percent stake in Saab for their initial €65m (£57m) and it has also agreed to buy €45m (£39m) of Saab cars, with €30m(£26m) up front and another €15m (£13) to come within 30 days.
The Swedish brand has been in dire financial trouble for months now, with production at its Trollhattan factory suspended for a month due to problems with paying suppliers.
It is claimed this new investment will "secure Saab's medium-term funding" and will allow the two companies to split the sales and manufacture of the brand's vehicles in China 50/50.
Victor Muller, CEO of Saab and its parent company Spyker, said: "Pang Da is a forward-looking, profitable and well-capitalized public company that, as the single largest automobile distributor in China, sees enormous potential for our brand in their home market. We will work hard to finalize the relevant agreements and firmly establish Saab in the world's fastest growing car market."
Saab has also managed to secure a €30m (£26m) loan from the Gemini Investment Fund, and is hoping to attract more investment in the near future. One possible investor is Vladimir Antonov, who has said he is interested in putting money into the Swedish company. Saab and Antonov are waiting for approval from the EU on his potential investment.
With a €29.1m loan from the European Investment Bank also arriving imminently, Saab should be able to put up a fight against closure at least.