Spyker Reaches Deal with China's Pandga to Save Saab

Just a few days after a proposed deal between Spyker (Saab’s owner) and China’s Hawtai Motor Group fell apart, Spyker has announced a new deal with China’s Pangda Automobile Trade Co. Ltd. The new deal is worth as much as 100 million euros.

Under the new deal, Saab will reportedly receive 30 million euros from Pangda for vehicles destined for sale in China, which will help Saab pay its suppliers and restart production. Saab’s Trollhatten plant has been idle for almost six weeks.

“This is a good first step if it can lead to Saab talking to its suppliers about paying its bills,” said Svenake Berglie, chief executive of the suppliers organisation, FKG.

Although Spyker has managed to find a new deal to hopefully save Saab, the deal could face the same problems as the earlier deal with Hawtai. Since Pandga is a distributor and not a manufacturer like Hawtai, hopefully there will be less hurdles to overcome.

Full Story: Reuters