IMPORTANT NEWS: National Electric Vehicle Sweden has agreed to buy the assets of Saab Automobile and the sale is expected to be finalized during the summer.

Saturday, May 21, 2011

Youngman has dibs on Saab?

As you all know, Monday this week Spyker Cars and Saab Automobile signed a MoU with Pang Da Automobile Trade for joint venture distribution and manufacturing of Saab vehicles in China, as well as a Pang Da investment in Saab's parent company.  The joint venture manufacturing and Pang Da's investment must be approved by Chinese authorities.

Today Svenska Dagbladet can report that on 18 May China's National Development and Reform Council (NDRC) held a meeting in Beijing where they made it clear that Jinhua Youngman Vehicle has the prioritized right to invest in Saab.

"NDRC's message at the meeting was that they would strictly enforce existing rules and policies governing foreign investment. This means that it is the company who submitted the application which has the right to make the deal," said an informed source who wishes to remain anonymous.

Youngman was the first, and maybe still the only company who has applied to the NDRC to become part owner of Saab. Evidently there can only be one application at a time to become part owner of a foreign car company. This would mean that Youngman must withdraw the application for Pang Da to be able to apply.

The reason is that Chinese authorities wants to prevent the Chinese companies from ending up in a bidding fight which will only favor the foreign company.

According to Victor Muller, this new information which could impede Pang Da's planned investment in Saab, is not correct.

"This is not the information we have received from that meeting and we have received first hand reports from the meeting. The fact that our deal with Pang Da would be blocked is absolutely incorrect, " Muller told SvD.

Victor Muller also said that he is certain that Pang Da will become a part owner of Saab.

If SvD's sources are correct, then Youngman can, if they want, make big problems for Saab and Pang Da. As always, only time will tell.