- Advertisement -

Bank of China to save Saab (?)

Reading Time: < 1 minutes

More News Like This Even Faster?

Priority News Access

Car Database

Calendar of Upcoming Events

Chinese EV Sales Data

Saab’s Dutch owner and China’s Zhejiang Youngman Lotus Automobile have agreed that the Bank of China, the nation’s fourth-largest bank by market value, will come in as part owner of the ailing carmaker, according to a source familiar with the deal.

Under the new deal, the Bank of China will replace Chinese investor Pang Da Automobile Trade Co. Youngman and the Bank of China will own just under 50 percent of the company.

The move could help pave the way for an approval by General Motors (GM.N), which still has preferential shares in Saab and rejected an earlier rescue plan. It said in November it would stop supplying components and technology if Youngman and Pang Da succeeded with their acquisition bid.

Saab has lurched from crisis to crisis in the past year. The company has not produced a car in months because of unpaid salaries and bills.

The new plan has been handed over to GM. Saab was not immediately available to comment.

The company is currently under court protection from creditors in Sweden after unions representing Saab employees began proceedings to put it into bankruptcy over unpaid wages.

Pang Da operates auto dealerships in China while Youngman produces commercial vehicles, including buses and trucks, and sells cars under the Lotus brand.

GM operates in China in a partnership with state-run automaker SAIC Motor Corp Ltd.

Via: Reuters.

Exclusive Content & Car Database

Try Our New Product. Priority Access, Chinese EV Sales & Car Database, or List Of Upcoming Events. Great For Journalists, Investors, Consultants or anyone who likes Chinese EVs.

News instantly?

Get notified about every news in your phone.

- Advertisement -

LEAVE A REPLY

Please enter your comment!
Please enter your name here

This site uses Akismet to reduce spam. Learn how your comment data is processed.

- Advertisement -