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

Article by Christian Andrei, 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

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