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.

Thursday, July 7, 2011

"It depends on the Chinese"

Earlier today the Swedish Government approved the sale of 50.1 percent of Saab's property. The money from this sale will be very important to run Saab in the short term. But to secure operations for the long term, all depends on the deal with the Chinese companies Pang Da and Youngman. Sweden's Minister of Enterprise, Maud Olofsson, held a press conference earlier this evening in Visby on Gotland where this whole week has been dedicated to politics and seminars.

One week ago the Minister met China's National Development and Reform Council (NDRC), which is China's top economic planning body, to discuss the Saab deal. And when talking with Svenska Dagbladet earlier today, the Minister showed a slight optimism that the deal would be approved by the NDRC.

"If a partnership with these Chinese companies can be achieved and if they have the financial muscles - then this can be what's needed," Olofsson told and continued saying that there are some steps that needs to be taken first.

Olofsson described the meeting with the NDRC as a good discussion where she tried to explain the advantages of Saab.

"I made comparisons with the Volvo - Geely deal, a deal they are very happy with, and it gives us a good track record, but also in that deal a strong financing was required before they would give their approval."

To me this sounds good. Reminding the Chinese of the Volvo deal is a smart strategy. Volvo is doing better than ever after they got married to Geely. If the Chinese believe that a Saab deal can be just as advantageous as the Volvo deal seems to be for Geely, then maybe Saab's deal will have a chance of getting the necessary approval!