Saab-Pang Da deal has to win the blessing of the Chinese government

4WheelsNews, June 7, 2011

Pang Da, a China-based auto dealer, may have come to the rescue of Saab by signing a 110 million euro ($157 million) deal with its parent Spyker but their agreement has yet to get the approval of the Chinese government. Its outcome is of primary importance as it could signal how similar scenarios in the auto industry will proceed. According to analysts, the deal may go against Beijing’s philosophy of anointing only a few local companies that are able to compete globally.

William Russo, who operates a Beijing-based consultancy called Synergistics, said that the deal demonstrates just how much Chinese companies value European brands but it’s “highly unlikely” that the alliance will get the approval of the government as it goes against China's policies to get “fewer, stronger national brands.”

Nevertheless, Spyker CEO Victor Muller and Pang Da's chief Pang Qinghua remain optimistic as Pang Da completes its review of Saab, according to Autonews. Operations at Saab's plant in Trollhatten stopped for six weeks when unpaid bills caused suppliers to stop the delivery of parts. But this plant has recently reopened after receiving 30 million euros from Pang Da for the purchase of its products. Regulatory approval was not required for this straight product-purchase portion of the deal.

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1 comment:

  1. Actually, my point to the reporter was that the NDRC needs to approve an alliance involving local production...and that this was unlikely. Pang Da can buy and import the cars, but government approval of local production of Saabs in China is not a likely scenario with any partner.