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.

Monday, July 4, 2011

Saab announces deal for the development of three new Saab models

Today Saab has issued a press release announcing an agreement with Youngman on the formation of a Sweden-based joint venture company for the development of three new Saab models. This joint venture will be 50 percent owned by Saab and 50 percent by Youngman, and will work to expand Saab's product range with three completely new models, a Saab 9-1, a Saab 9-6X and a Saab 9-7.

Saab will be responsible for controlling and managing the design, the development and testing process to the start of production and providing other necessary technical and quality control support. For this, Saab will source existing capabilities and expertise from its state-of-the-art technical development department in Trollhättan. Youngman will be responsible for providing the necessary financial investments in the joint venture. The agreement is subject to approval from relevant authorities.

"Our ambition has always been to broaden our product range", Saab's Executive Director of Communication Eric Geers told TT. He continued saying "but we never comment specific on how the models will be".

"This joint venture will only concern the Saab brand. I can not go into the time frame, but to develop car models takes quite a while", Geers said to TTELA.

Saab 9-1 sketches from TopSpeed

Saab also announced that the MoU concerning investment in Saab's parent company, Swedish Automobile, signed with Chinese companies Pang Da and Youngman on 13 June has now been finalized. The agreements are still subject to approval by Chinese and Swedish authorities and the European Investment Bank and GM. This deal will see the Chinese companies invest EUR 245 million in Swedish Automobile/Saab.

"This is an important step. Now we have an unconditional agreement with the Chinese. It is a very important step, long term, you could say," said Eric Geers to Swedish Radio.

It was also announced that the agreement with the Chinese also will allow for the return of Mr. Vladimir Antonov as a shareholder/financier of Swedish Automobile/Saab. A return the parties expect as soon as Mr. Antonov has been approved by relevant stakeholders.

Saab and the Chinese companies continue working to reach final agreement on the tripartite distribution joint venture and a tripartite manufacturing joint venture for Saab-branded and child brand vehicles in China.