Saab strikes new Chinese deal

• New lifeline for Saab from Pang Da
• Deal is worth €110 million
• Production to restart 'soon'

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Saab has struck a €110 million funding and partnership deal with Chinese manufacturer Pang Da.

Saab owner Spyker says an initial €30 million payment from Pang Da will make it possible to reach agreement with its parts suppliers and resume production 'as soon as possible'.

The agreement should also see Pang Da make a further €15 million payment for more cars within 30 days and take a €65 stake million in Spyker.

The two companies today signed a memorandum of understanding over the cash and for a 50:50 distribution and manufacturing alliance in China. The deal will mean Saab-branded vehicles will be built and distributed in China.

Spyker boss Victor Muller, said: 'Pang Da sees enormous potential for our brand in their home market. We will work hard to finalise the relevant agreements and firmly establish Saab in the world's fastest growing car market.'