Car News

Saab's Chinese Checkered Future

RELATED INVENTORY
Saving this vehicle to yourMy Autotrader account
Are you sure you want to delete?
Used 2011 Saab 9-5 Turbo4
Used 2011 Saab 9-5
$10,500
RELATED READING
See all Saab any articles
RESEARCH BY MAKE
Toyota cars, trucks and SUVs Ford cars, trucks and SUVs Honda cars, trucks and SUVs Chevrolet cars, trucks and SUVs Jeep cars, trucks and SUVs Nissan cars, trucks and SUVs Lexus cars, trucks and SUVs Volkswagen cars, trucks and SUVs BMW cars, trucks and SUVs
Acura cars, trucks and SUVs Alfa Romeo cars, trucks and SUVs AMC cars, trucks and SUVs Aston Martin cars, trucks and SUVs Audi cars, trucks and SUVs Bentley cars, trucks and SUVs BMW cars, trucks and SUVs Bugatti cars, trucks and SUVs Buick cars, trucks and SUVs Cadillac cars, trucks and SUVs Chevrolet cars, trucks and SUVs Chrysler cars, trucks and SUVs Daewoo cars, trucks and SUVs Datsun cars, trucks and SUVs DeLorean cars, trucks and SUVs Dodge cars, trucks and SUVs Eagle cars, trucks and SUVs Ferrari cars, trucks and SUVs FIAT cars, trucks and SUVs Fisker cars, trucks and SUVs Ford cars, trucks and SUVs Freightliner cars, trucks and SUVs Genesis cars, trucks and SUVs Geo cars, trucks and SUVs GMC cars, trucks and SUVs Honda cars, trucks and SUVs HUMMER cars, trucks and SUVs Hyundai cars, trucks and SUVs INFINITI cars, trucks and SUVs Isuzu cars, trucks and SUVs Jaguar cars, trucks and SUVs Jeep cars, trucks and SUVs Kia cars, trucks and SUVs Lamborghini cars, trucks and SUVs Land Rover cars, trucks and SUVs Lexus cars, trucks and SUVs Lincoln cars, trucks and SUVs Lotus cars, trucks and SUVs Maserati cars, trucks and SUVs Maybach cars, trucks and SUVs Mazda cars, trucks and SUVs McLaren cars, trucks and SUVs Mercedes-Benz cars, trucks and SUVs Mercury cars, trucks and SUVs MINI cars, trucks and SUVs Mitsubishi cars, trucks and SUVs Nissan cars, trucks and SUVs Oldsmobile cars, trucks and SUVs Plymouth cars, trucks and SUVs Pontiac cars, trucks and SUVs Porsche cars, trucks and SUVs RAM cars, trucks and SUVs Rolls-Royce cars, trucks and SUVs Saab cars, trucks and SUVs Saturn cars, trucks and SUVs Scion cars, trucks and SUVs smart cars, trucks and SUVs SRT cars, trucks and SUVs Subaru cars, trucks and SUVs Suzuki cars, trucks and SUVs Tesla cars, trucks and SUVs Toyota cars, trucks and SUVs Volkswagen cars, trucks and SUVs Volvo cars, trucks and SUVs Yugo cars, trucks and SUVs
RESEARCH BY STYLE
AWD/4WD
Commercial
Convertible
Coupe
Hatchback
Hybrid/Electric
Luxury
Sedan
SUV/Crossover
Truck
Van/Minivan
Wagon
ADDITIONAL MODEL INFORMATION

author photo by Autotrader May 2011

It's been a nail-biting time at Saab, despite launching the 2011 9-5 sedan, its finest car in 20 years. But things might be improving now the company has signed a deal with a Chinese concern, bringing in the equivalent of $92 million (65 million Euros).

Ever since Spyker, a Dutch boutique automaker, purchased Saab from General Motors in January 2010, its road has been decidedly rocky, with production recently coming to a halt after unpaid parts suppliers stopped deliveries. Only days before this new deal, Saab was in talks with another Chinese company – Hawtai, a small-scale newcomer to that country's auto manufacturing industry. But Hawtai could not secure the necessary approval from its stakeholders, moving Saab and its parent company closer to complete collapse.

Stepping up is Pang Da, described by Saab as "the largest automobile distributor in China." It owns more than 1,100 dealerships – selling Audi, VW, Mazda and Honda products – and has just bought itself a 24-percent stake in Saab, along with the right to have a representative on the board of Saab and/or Spyker.

On top of the $92 million, Pang Da (which launched on the Shanghai stock exchange only a few weeks ago) will deposit the equivalent of $43 million into Saab's depleted coffers, followed by another payment of $21 million after 30 days. This will secure funding for the medium term, enabling Saab to pay off some debts and get the assembly lines rolling again.

All this frantic negotiation has been the responsibility of Spyker/Saab's CEO, Victor Muller, a likable and charismatic man with the enviable ability to raise large sums of money. He procured Russian investors for his Spyker concern and there has been talk of a similar arrangement with Saab. But there is logic in looking to China. It has the fastest-growing car market in the world right now and this deal with Pang Da also involves gaining a foothold in manufacturing, something that has yet to be worked out. So perhaps Hawtai could come back to the table.

"It still requires a lot of work before [the money] is in our account, to get the permits," said Muller. At some point, the Chinese regulatory authorities will have a say in what happens, so this latest chapter of the Saab saga may be far from the last.

RELATED INVENTORY
Saving this vehicle to yourMy Autotrader account
Are you sure you want to delete?
Used 2011 Saab 9-5 Turbo4
Used 2011 Saab 9-5
$10,500
This image is a stock photo and is not an exact representation of any vehicle offered for sale. Advertised vehicles of this model may have styling, trim levels, colors and optional equipment that differ from the stock photo.
Saab's Chinese Checkered Future - Autotrader