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.

If you liked the article, share on:

Topics: saab

Comments

Recommended

Earlier in November at the 2017 SEMA Show in Vegas is when Hennessey unwrapped the Venom F5 to all of us. But it was actually first introduced as a concept...
by - November 22, 2017
Mercedes-Benz just made an announcement that the 2018 E Class Cabriolet has finally landed in the United States. If you had not known, the E Class will be positioned in...
by - November 22, 2017
After a somewhat successful fray into the automotive market in China, the resurrected German automobile brand Borgward is finally heading to Europe, bringing along with it the Borgward BX7 sports...
by - November 22, 2017
Automotive industry veteran Bob Lutz has once again spoken out against Tesla. Known as one of Tesla Motors’ greatest skeptics, Lutz had stated two years ago that the Silicon Valley...
by - November 22, 2017
Dubai is one of the few countries where expensive cars are the norm, many of which are specially modified as well. And this just in: Bentley has debuted the new...
by - November 21, 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