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, June 1, 2011

Pang Da buys more Saab cars

When Saab entered a deal with Pang Da Automobile Trace Co last month, the deal comprised of three possible transaction. First a EUR 30 million down payment from Pang Da to Saab for 1,300 Saab cars to be delivered from September this year. Then if certain conditions were fulfilled, another EUR 15 million payment for 630 more cars. And finally a EUR 65 million investment in Spyker Cars (parent company of Saab) for a 24 per cent ownership share.

Today Saab has issued a press release saying that Pang Da has decided to process with the second payment and thus buy 630 more Saab cars to be delivered in the fall this year.

“I am delighted that Pang Da, as previously planned, has ordered an additional 630 Saab vehicles. This not only shows the potential for the Saab brand in the Chinese market, but also that in Pang Da, we have found the right partner. I look forward to the next step in our business relationship when we set up joint ventures for distribution and, at a later stage, production in China together with a still-to-be-named manufacturing partner,” Victor Muller, CEO of Spyker and Saab Automobile, says in the press release.

Mr. Pang Qinghua, CEO and Chairman of Pang Da, adds: “Our visit to Trollhättan last week has further strengthened our belief that we made the right decision in entering a partnership with Spyker and Saab Automobile. This additional order is the result of my firm conviction that Saab has the right product program for the Chinese market and our large distribution network will be an important asset in unlocking the potential of the brand."

In other words, Saab's order book just got 630 cars thicker! In total Saab's order bank should now be close to 9,000 cars, where 1,600 are Saab 9-4X to be built in Mexico.