Saab announced today that it had made a deal with Chinese companies Zhejiang Youngman Lotus Automobile and Pang Da, who together will bring an infusion of 351 million dollars to the Swedish automaker, helping it get back on its feet after several months of financial turmoil.
Zhejiang Youngman Lotus Automobile (ZYLA) will invest around 195 million and participate in a joint venture to manufacture and distribute Saab vehicles in China. The firm will receive a 29.9% stake in return.
Last May, Pang Da invested 93 million in Saab for a 24% stake. The addition of ZYLA to the equation forced the distributor to increase its investment to 157 million in order to retain its shares.
This means that 53.9% of Saab’s shares are in the hands of these two Chinese partners, and the automaker will be able to build vehicles in China rather than import them, which will allow for considerable savings.
Satisfied with this turn of events, Saab’s president and CEO, Victor Muller, said the latest deal is “a step that significantly strengthens Saab’s financial position and will secure the mid- and long-term financing for Saab automobile”.
The deals still need to be approved by various authorities, however, meaning that nothing is set in stone and there could be yet another reversal in the situation.
Zhejiang Youngman Lotus Automobile (ZYLA) will invest around 195 million and participate in a joint venture to manufacture and distribute Saab vehicles in China. The firm will receive a 29.9% stake in return.
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| Photo: Saab |
Last May, Pang Da invested 93 million in Saab for a 24% stake. The addition of ZYLA to the equation forced the distributor to increase its investment to 157 million in order to retain its shares.
This means that 53.9% of Saab’s shares are in the hands of these two Chinese partners, and the automaker will be able to build vehicles in China rather than import them, which will allow for considerable savings.
Satisfied with this turn of events, Saab’s president and CEO, Victor Muller, said the latest deal is “a step that significantly strengthens Saab’s financial position and will secure the mid- and long-term financing for Saab automobile”.
The deals still need to be approved by various authorities, however, meaning that nothing is set in stone and there could be yet another reversal in the situation.