Trollhättan, Sweden – Saab Automobile and Spyker Cars have announced a strategic partnership with Pang Da Automobile Trade Company, China’s largest publicly-traded automobile distributor.
The parties have signed a memorandum of understanding that includes a 50/50 distribution joint venture and a manufacturing joint venture that will include Saab-branded cars and a brand owned by the joint venture in China. Saab will have up to 50 per cent in the venture, with the remaining shares owned by Pang Da and a manufacturing partner yet to be selected.
Earlier this month, Saab and Spyker announced a planned partnership with Chinese auto company Hawtai, but the deal was terminated when Hawtai could not obtain the necessary consent of its stakeholders.
Pang Da, which has over 1,100 dealerships in China, will make a €30 million payment for the purchase of Saab vehicles, and is expected to make an additional payment of €15 million within 30 days to purchase more vehicles, subject to certain circumstances. Pang Da will also take a €65 million equity stake in Spyker, representing 24 per cent of the company, and will have the right to nominate a member of the supervisory board of Spyker and/or the board of Saab Automobile.
Upon receipt of the initial €30 million payment, Saab intends to come to an agreement on payment and delivery terms with its suppliers and resume production as soon as possible.
“Both parties are confident that this partnership allows Saab Automobile and Pang Da to create a strong business, initially in the distribution and subsequently in the manufacturing of Saab vehicles in China,” said Victor Muller, CEO of Spyker and Saab. “Pang Da is a forward-looking, profitable and well-capitalized public company that, as the single largest automobile distributor in China, sees enormous potential for our brand in their home market. We will work hard to finalize the relevant agreements and firmly establish Saab in the world’s fastest-growing car market. Pang Da taking a substantial equity stake in Spyker underlines their confidence in our plans for the future and China in particular.”