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Saab announces new Chinese partnership

AFP/The Local · 16 May 2011, 10:23

Published: 16 May 2011 10:23 GMT+02:00

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"The memorandum of understanding includes a strategic alliance consisting of a 50-50 distribution joint venture," Spyker said in a statement.

The deal also covers "a manufacturing joint venture (MJV) for Saab branded vehicles as well as for an MJV-owned brand (the so-called 'child brand') in China," the statement said.

Pang Da will initially transfer €30 million ($42 million) to purchase Saab cars and another €15 million to purchase more vehicles within 30 days of the initial purchase.

The Chinese company will "take an equity participation in Spyker for a total amount of €65 million at €4.19 per share representing up to 24 percent of Spyker's outstanding share capital on a fully diluted basis.

"Both parties are confident that this partnership allows Saab Automobile and Pang Da to create a strong business, initially in the distribution and subsequently in the manufacturing of Saab vehicles in China," Spyker head Victor Muller said.

Spyker described Pang Da as "China's largest publicly traded automobile distributor with over 1,100 dealerships nationwide".

"Having just gone public ourselves three weeks ago, we are delighted to have the opportunity to become a substantial shareholder in Spyker, Saab's parent," Pang Da chief executive Pang Qinghua said.

"We very much look forward to collaborating with Saab's management to successfully enter our promising home market," he added

Story continues below…

Monday's announcement comes less than a week after Spyker said a deal with Chinese carmaker Hawtai had fallen through.

The cash-strapped carmaker, which halted production "until further notice" last month as suppliers stopped deliveries over unpaid bills, had said it was looking into partnerships with other Chinese companies.

AFP/The Local (news@thelocal.se)

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Your comments about this article

11:17 May 16, 2011 by laura ka baal
All the pride and glory of the stiff swedish people has been taken away by the chinese so called asians, now what the vikings have to say.
11:18 May 16, 2011 by Jasper2
If I ever go to jail I want Victor to represent me.

This guy is really good.

Each time I drive my SAAb I get why this brand should continue.

It amazes me I never get bored with the car----even after 5 years.
11:31 May 16, 2011 by NickJT
Victor is a fighter of the highest order and we should be proud of the energy, ingenuity and passion he has gone about finding solutions for Saab as problems come up. This is entreprenurship of the highest order and we need more people like him to drive Swedish businesses forward even if at the end of the day Saab sinks.
12:11 May 16, 2011 by TheOriginalBlackMan
Victor Muller is surely but slowly selling the entire company to the Chinese. Great move by the Chinese business men. They can now attain a once well known trademark which in a huge Asian market may carry some weight and at the same time sell the cars back to the Swedes for double the price, since all the cars well eventually be made in China. Trollhättan, please prepare yourself for the pink slips since they are coming. The whole SAAB operation will be based in Bejing soon enough.
14:53 May 16, 2011 by 9395
Chienes again, it seems that only Chinese can save SAAB now. But they are too "nice" -- if I have that much cash, I must have the best agreement with SAAB at this critical moment.

American company makes SAAB dead, Chinese company save it. Who is better? US !
15:56 May 16, 2011 by bjinger
like driving a roller coaster. but why dead is better than live?
18:50 May 16, 2011 by spy
Blacky you are either a complete fantasist or a terrible troll....
10:02 May 17, 2011 by rocktheworld
Chinese save the Swedish SAAB, the swedes should thank to Chinese, please also sell the throne to Chinese as well !!!!!!!! China rock!
11:14 May 17, 2011 by Libertarian
To: 9395

It wasn't the U.S. that killed SAAB; of course SAAB is still alive, but not very well.

I think that probably the high cost of production in socialist Sweden had more to do with the problems at SAAB. Also customer demand decreased, and in supply and demand market economy, if you don't provide what the customer wants at a reasonable price, demand will usually dry up. So even though you probably like to blame most if not all of the problems in the world on the U.S., at least most Americans aren't gutless and lazy like many Swedish are.

You can always use your bike, since you Swedish socialists want to reduce everyones living standards to using only public transportation and/or bicycles for transportation.

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