Saab owner, Chinese firm in venture

May 17, 2011|Associated Press

STOCKHOLM — Scrambling for a quick fix for its cash-strapped Saab unit, Spyker Cars NV yesterday signed a distribution deal with the Chinese company Pang Da, but it postponed plans to start production in China to avoid regulatory issues.

Netherlands-based Spyker Cars said Pang Da will inject $92 million for a 24 percent stake in Spyker, and the two will form a 50/50 joint venture for the distribution of Saabs in China.

Spyker has been struggling to find cash for Saab, which was forced to stop production at its plant in Sweden in April.

Last week, an agreement to start manufacturing cars in China with the automaker Hawtai collapsed after the Chinese company said it could not obtain the necessary approvals from authorities in time to save Saab from collapse.

Spyker said the Pang Da deal is also subject to conditions, including clearance by Chinese government agencies, the European Investment Bank, previous Saab owner General Motors Corp., and the Swedish National Debt Office.

However, Spyker’s chief executive, Victor Muller, said it would be easier to obtain the regulatory approvals now because Pang Da is not a car manufacturer.

Pang Da distributes dozens of car brands, including Audi, Volkswagen, Mazda, Honda, Subaru, and Chery.

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