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.

Wednesday, August 3, 2011

Pang Da not to inject capital into Saab before approval from NDRC

It's no secret that Saab is a cash strapped company. Each month sees another liquidity squeeze. Now it looks like Saab will be able to pay wages to its workers this months. But the question is if Saab will ever raise enough money to restart production.

Now it is reported that Chinese company Pang Da Automobile Trade Co Ltd, which is planning to buy 24 percent of Saab's parent company Swedish Automobile, has told media that the company will not inject additional capital into Saab before the planned share investment and partnership between Pang Da and Saab is approved by China's National Development and Reform Commission (NDRC). 

Chairman of Pang Da, Pang Qinghua, said that the issues relating to the launch of the joint venture in China will be up for discussion this week. This according to Middle East North Africa Financial Network. 

From earlier we know that an approval from the NDRC can take several months. And to keep Saab alive until then requires money. The other Chinese partner Zhejiang Youngman Lotus Automobile Co. Ltd, has earlier said that it is considering helping Saab with funds. But so far no money has come from Youngman.

So be prepared for several more weeks of reports of unpaid wages and the possibility for bankruptcy filings.