Saab finally bought by the Chinese

The operetta surrounding Saab finally has an ending, as Pang Da Automobile Trade Co. and Zhejiang Youngman Lotus Automobile Co. have agreed to buy Saab, for which they will pay around 100 million euros, assuming the company’s debts.

For now it is a memorandum of understanding between Victor Muller and the Chinese. But it will remain valid until November 15. During that period, Saab technically remains within the reorganisation process, since it has been secured that Lofalk has withdrawn the petition filed with the judge to push Saab into bankruptcy.

In statements to a Swedish radio station, Muller said the Chinese have promised to invest around 500 million euros in Saab, with Muller remaining as CEO. The Chinese will eventually appoint a CEO of their own choosing, although Muller will remain involved in one way or another.

We are still waiting for further news.

Update: Inside Line has reported that vehicle production could begin in about two months, once Saab pays its debts and overdue wages. It also remains to be seen whether the Chinese government will give its approval to the purchase.

Via | Automotive News