Saab gets more Chinese investment
* Injection of 245m euros * Investment from Chinese firms * Saab will build cars in China...
Saab has announced details of more Chinese investment.
The non-binding memorandum of understanding (MOU) means that Chinese manufacturing company Zhejiang Youngman Lotus Automobile Co Ltd. (Youngman) will invest 136m euro (around 121m) in Saab, in return for a 29.9% stake in Spyker, which owns Saab.
As part of the deal, Pang Da Automobile Trade Co (Pang Da), which announced a 65m Euro investment in Saab in May, will now raise its overall input to 109m Euro (around 97m), but retain its 24% stake in Spyker.
The deal will give Saab an increased presence in the growing Chinese market. Saab's financial problems halted production in Sweden earlier this year, but the investment will help to pay suppliers and keep factories in business until new models arrive.
Victor Muller, CEO of Spyker and Saab Automobile said: 'Having entered the MOU on May 16 with Pang Da, we collectively immediately set out to identify the most suitable (manufacturing) partner to join Saab and our joint ventures. We are convinced that Youngman represents all the qualities required to make Saab and the joint ventures a success.'