Posted on Saturday, 2nd July 2011 by RTJ
Spyker Cars, owner of the Saab brand, recently announced that it has formed an agreement with two Chinese companies that will put in around $350 million of combined investments to gain control of Saab and Spyker. This agreement if approved by the Swedish and Chinese government and the stakeholders of the companies will mean that Swedish car brands Spyker, Saab, and including Volvo will be under the control of Chinese owners.
What has been happening in the past eighteen months with the Swedish car manufacturer is quite dizzying with General Motors handing over the control of Saab to the smaller company Spyker that is known to have a low volume production output of very expensive sports cars. The scramble includes the attempts of Spyker to get enough funds from the Swedish government, a Russian financier, and investment banks in Europe so Saab can survive.
Saab disclosed that the memorandum was signed with Youngman Lotus Automobile Company of China to get around 30% share of Spyker in exchange for a $195 million investment.
The other half of the deal includes Pang Da Automobile of China in collaboration with Youngman Lotus to have Saab cars produced in China plus its distribution in the current biggest automobile market in the world.
Pang Da is the biggest distributor of cars in China and will have a 24% stake of Spyker. In combination with the other Chinese company, they will have a 53% control of Spyker and will also be at the helm of Saab. Pang Da will be putting in an additional investment of $155 million.
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