Chinese automotive companies agree to buy Saab Automobiles for €100 million

Chinese automotive companies agree to buy Saab Automobiles for €100 million

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Asia Bizz: Pang Da Automobile Trade Co. and Zhejiang Youngman Lotus Autumobile Co. have together agreed to purchase the struggling Swedish car maker Saab Automobiles for €100 million. This is a new step-up plan for the company that has been producing cars for decades to resurface in the global automotive market.

According to the current owner of Saab, this agreement has a validity date till November 15 and final terms and conditions are being worked out so that they can come to a primary conclusion as of how the long-term financing would initiate. It has been months as Saab has not produced any vehicle from its plant, as the company has been slipping into financial potholes, management and production has become an impossible task.

There are certain agreements that the Chinese car makers have kept forward, especially the creditors protection, plus the €100 million which has been decided would be paid in instalments. Initially the Chinese automotive giants had agreed to flush in €245 million, with the Youngman group having to pay €70 million through bridge financing.