Saab heads for Chinese owners after rescue bid

By News on the Net —— Bio and Archives October 29, 2011

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By Veronica Ek and Patrick Lannin, Stockholm, Reuters Struggling Saab is set to follow rival Swedish car maker Volvo into Chinese ownership under a planned €100-million euro ($141-million U.S.) rescue purchase by Pang Da Automobile Trade Co and Zhejiang Youngman Lotus Automobile Co.

Saab has not produced cars for months and has lurched from one cash crisis to another. It found itself under court protection from creditors to stop bankruptcy filings, a process which was in danger of collapsing before the new agreement. The deal, announced on Friday, is set to bring a €70-million loss to current owner Swedish Automobile and will need the approval of General Motors and the Chinese authorities.