Patrick Rall's picture

Saab finds a new Chinese investor in Pang Da

The financial problems appear to have lightened a little for Saab and Spyker as Chinese automotive giant Pang Da Automobile Trade Co. has signed a memorandum of understanding with the Swedish automaker that should help keep the company’s short and mid-term cash flow issues.
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Pang Da reportedly has agreed to purchase a $43 million portion of Saab up front along with an additional $21 million worth of the Swedish automaker in 30 days. Also as a part of this agreement, Pang Da will pay $92 million for a 24% ownership of Spyker (the parent company of Saab). This means not just big money for Saab up front, but since Pang Da is an automotive distribution company there should be little delay in helping to move Saab units into the Chinese market to help raise more money through vehicle sales.

It was just two weeks ago when Saab/Spyker announced that they had entered into an agreement with Chinese Hawtai Motors but last Tuesday, that deal was called off when someone in the Hawtai hierarchy gave the partnership the thumbs down. The money from Hawtai was earmarked to pay suppliers who are currently holding out future shipments until payment is made and with all sorts of production stoppages due to supplier non-payment issues, the odds are good that the money coming in from Pang Da will be headed right back out of the Saab bank account in order to get things moving at their Trollhattan plant once again.

This program doesn’t mention any exclusivity so there may still be an open door for Russian investor Vladimir Antonov to get involved with Saab and Spyker. Saab’s announcement of the deal with Pang Da mentions another party being involved in the manufacturing end of things – considering that Saab wanted to see their production facility to Antonov and then rent them back from him, perhaps the young Russian will still get his chance to own a chunk of the Swedish automaker.

TorqueNews.com will continue covering the saga of Saab, bringing you any news as it becomes available!

Other Saab News:
Saab/Spyker partnership with Hawtai Motors terminated
Saab names new Chief Operating Officer for North America
Spyker sells part of Saab to Chinese Hawtai Motors
Spyker may join forces with Chinese to save Saab, GM approves Russian investor
Saab suppliers claim the automaker owes tens of millions
Saab production halted as supplier problems continue


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