Pang Da has not changed its plan to buy a stake in Saab, despite problems

Article by Christian A., on June 24, 2011

Wang Yin, the board secretary at Pang Da Automobile Trade Co. stated that the China car dealer has not changed its plan to obtain a share in Swedish Automobile NV, which owns Saab Automobile. Wang Yin stated that Saab is having temporary financial problems but that the issue isn’t fundamental.

Labor unions at Saab have threatened to commence a legal procedure that could bring the company to bankruptcy. Earlier, the company has announced that it is unable to pay wages to its workers because it has not obtained sources for short-term financing.

The automaker and its owner, Swedish Automobile NV, remain in discussions with various parties to obtain the needed financing, including the possible proceeds from a sale-and-lease-back agreement on Saab's property.

Swedish Automobile has agreed this month to a rescue package for Saab with Pang Da, as well as another Chinese vehicle company Zhejiang Youngman Lotus Automobile Co. When approved by authorities in Europe and China, the deal will solve long-term financing problems.

Saab has been forced to shut down operations at its Trollhaetten production, which it first did in April dues to payment dispute with suppliers. It restarted operations on May 27 after obtaining a cash advance from Pang Da, but it was halted again on June 8.

Topics: saab

If you liked the article, share on:

Pin It

Comments

Recommended

The German automaker Volkswagen is now racing against time to come up with electric vehicles that will be able to pass Europe and China's stringent emission standard. The car company...
by - March 22, 2017
In the last few years, the advent of compact sedans and crossovers has become quite overwhelming. Even two of the major manufacturers that “started it all” have to admit that...
by - March 22, 2017
By 2020, Audi will be throwing out not just one but three fully-electric vehicles. One of which will be pitted against the BMW i8. This new information was revealed by...
by - March 22, 2017
Tesla confirms that they will be discontinuing the fairly new Model S 60 and 60D sedans as soon as next month. Why, you ask? The company wants to make enough...
by - March 22, 2017
Have you ever wondered how much luxury car companies profit from every vehicle they sell? And which companies profit more? Well, in 2016, Porsche sold over 238,000 vehicles. That is...
by - March 22, 2017
Facebook

Youtube Channel

Tip Us
Do you have a tip for us?
Did you film an important event?
Contact us
Newsletter
Subscribe to our newsletter!
Subscribe
Galleries