Official: Saab’s Chinese buyers commit over $850M in long-term funding
may have finally been saved last week when Chinese companies Pang Da Automobile Trade Co. and Zhejiang Youngman Lotus Automobile Co. , thus providing some much-needed short- and long-term financing. Pang Da and Youngman purchased Saab for 100 million euros ($142M USD) and they are offering up a €50 million ($70M) bridge loan. Most importantly, the Chinese companies have now pledged €600 million ($854M) in long-term funding. That’s assuming, of course, that the Chinese government gives this deal its seal of approval – a very big “if.”
According to Saab’s restructuring plan, vehicle production will once again resume in Sweden and Mexico, though vehicles may be built in China in the future. Saab is keen to get its latest products – the and – out to its key markets, and hopes to sell up to 55,000 units in 2012, with an even larger goal of moving 205,000 units per year in the long-term. That’s very optimistic, especially considering that in 2010, Saab sold just under 32,000 vehicles.
Even so, Pang Da and Yougman are confident that Saab can become a profitable company in the very near future. The restructuring plan states that 2012 and 2013 will be “financial transition years,” with full profitability expected in 2014. Follow the jump to read the full release.
2011, 911, automobile, China, CTS, EDGE, fun, gm, Lotus, Mexico, Official, profit, ring, SD, Sweden, tC, test
