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.

Sunday, June 19, 2011

Pang Da confident that Saab deal will be approved

Back in 16 May Chinese Pang Da Automobile Trade Co Ltd signed a Memorandum of Understanding (MoU) with Saab to become partners in manufacturing and distribution of Saab vehicles in China, as well as investing in Saab's parent company Swedish Automobile. On 13 June it was announced that Pang Da and Saab had signed a MoU with Zhejiang Youngman Lotus Automobile Co. Ltd to become the third partner in the joint venture. In between these to happenings, Pang Da visited Saab in Trollhättan as part of their due diligence process.  Pang Da was so happy with what they saw in Trollhättan that they ordered 630 more Saab cars only a few days after the visit.

Today China Car Times reports that CEO of Pang Da, Mr. Pang Qinghua, has said in a recent interview that the due diligence process on Saab is coming to an end, and that he is confident that the government, based on the due diligence report, will approve the tripartite partnership between Pang Da, Youngman and Saab.

To get the approval from the Chinese authorities, first an application needs to be handed in.  Mr. Pang Qinghua said in the interview that Youngman is the party that needs to file the application and that Pang Da is urging Youngman to file the application as soon as possible. From earlier we have been told that Youngman filed an application more than two months ago, but that application now probably needs to be rewritten.

Regarding distribution and sale of Saab cars in China, Pang Da has bought around 2,000 Saab cars which is a mix of Saab 9-3, Saab 9-5 and Saab 9-4X to be imported to China from October this year. Pang Da will open 20 self-operated dealerships.