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Saab production resumes in Sweden

TT/The Local/dl · 27 May 2011, 11:15

Published: 27 May 2011 07:41 GMT+02:00
Updated: 27 May 2011 11:15 GMT+02:00

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Production at the facility, which has been shuttered for nearly two months as the Swedish automaker struggled to deal with a prolonged liquidity crisis, resumed around 10:30am on Friday, according to a statement from Saab-owner Spyker

A delegation from China's Pang Da, including CEO Pang Qinghua, was on hand for the occasion.

Pang Da's initial transfer of €30 million ($42 million) for the purchase of 1,300 cars, provided Saab with the funding needed to restart production.

On Thursday, Qinghua, along with Saab chair Victor Muller, meet with Sweden's enterprise minister Maud Olofsson to discuss the new arrangement between the Swedish automaker and the Chinese distributor.

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

Following the meeting, which Muller described as "excellent", Olofsson said she felt the exchange of information had been useful.

"Pang Da spoke of the possibilities they see for Saab to enter the Chinese market. The company is an interesting partner considering that sales are what Saab needs to increase," she told the TT news agency.

Olofsson also inquired about the future of Saab production in Sweden.

"They answered that even if Saab has production in China, production in Sweden will continue to be important," she said.

According to an initial framework agreement, Pang Da will take an equity stake in Spyker of €65 million at €4.19 per share, representing up to 24 percent of Spyker's outstanding shares.

Story continues below…

While the first €30 million is enough to get production moving, the final details of the agreement still need to be ironed out.

In addition, Sweden's National Debt Office (Riksgälden) must approve Pang Da's eventual ownership stake. While representatives from both companies also met with Debt Office officials on Thursday, final approval could take weeks.

TT/The Local/dl (news@thelocal.se)

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Your comments about this article

13:20 May 27, 2011 by FourSaabs
Anything to keep Saab viable is good news!
13:53 May 27, 2011 by kapilnarwal
Oh! finally my dream company is back on track......................

congratulations SAAB
19:25 May 27, 2011 by MikeSar
Amen to that: "Anything to keep Saab viable is good news!"

Might they be interested in the most cost-effective supersonic jet fighter?

Is the sky blue?

Congratulations SAAB!!!
18:06 May 28, 2011 by tomas R

I think that Sweden made miracle producing SAAB and VOLVO. I can show You some facts (the main vehicles producing countries):

China about 1337 million people,

USA about 308 million people,

Russia about 143 million people,

Japan about 125 million people,

Germany about 80 million people,

France about 60 million people,

South Korea 50 million people,

Sweden about 10 million people.

So the question is. Which countries have more possibilities to choose? The answer: of course Sweden has the smallest possibilities to choose. But Sweden's SAAB and VOLVO are trying. And it is RESPECTABLE.

I am always for SAAB (driving SAAB 9000'95)

tomas (Lithuania)
03:11 May 29, 2011 by Jasper2
But many Japanese cars are made in the U.S.

and many U.S. cars are now made in China

and some South Korean Cars are made in the US

And Chrysler is now Italian

and American cars have Japanese and Mexican components

My Saab has an Australian Engine, which was cast in Mexico and a Japanese transmission

So, no car really belongs to any one country anymore
14:17 May 29, 2011 by tomas R
:to Jasper2

You are absolutely right. The car belongs to more than one country. For example my SAAB 9000'95 was assembled in Trollhattan. But some electrical parts were made in Germany by BOSCH (electrical engines and sensors). For example the speedometer was made by YAZAKI (Japan) and LUXOR (Sweden). DI cassette was made in Amal (Sweden). And I think that it is very good. These things only show that SAAB is high quality car.

tomas (Lithuania)
10:32 May 30, 2011 by tomsawyerlvx
The solutions is simple, find people that has cars' patent to adding in saab designs and renew the car line... What the old "vip's" saab not do it?? A big questions... perhaps they don't where they can buy it... and think that a bad idea has accords with Porsche. The politicians say that saab only need cash, but not, they need ideas...

: )
10:06 May 31, 2011 by VikingX
Glad to see a car brand that still has character survive against all odds, defying many of the so-called car industry 'experts' ...

Go Saab Go...!
15:27 May 31, 2011 by harrylatour
As a Brit i know only too well what it is like to loose a motor conpany to world trends but both Saab and Volvo must make sure that they are not just being used as 'makeweights' by their new owners.The truth is that at the moment Saab has no hope in hell of long term viability.No new thinking and no (published) plans to embrace current vehicle ethos.No ''Mini'',no 'Beetle,No '500,,,,my god,,even Chysler is looking better by the day.Saab must innovate,,,where is the 'cutting edge' hybrid,where is the ''Reborn 95'?? Invest in some NEW STUFF that people want,,not just the,,,Saab enthusiasts,Mass appeal is the only way to survive,,even Fiat are on a roll,taking more share of American motor companys.Your government must keep a close eye on Saab and make sure that no ''short sellers'' take a free ride!! Be warned,,look what happened to us in the UK.
02:21 June 27, 2011 by JoeR
Why is this not the lead story for SAAB on the front page?

I just spent the w/e driving a 2011 Saab Aero, this is a great car any manufacturer would be proud off! Saab just needs to get back to producing & designing cars and not spend time trying to survive.

I hope the money comes through as all car companies need to be part of a larger company to get the economies of scale. In Australia we have 3 local manufactures, and they all have large parent companies, GM, FORD & TOYOTA

We have a small population of 20m but we don't have any export markets, so if SAAB dna appears in locally produced cars in China that is step forward in the World market.
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