Saturday, 29 October 2011

Saab sold to Pangda and Youngman for $125 million

Swedish Automotive has reached an agreement to sell its struggling Saab unit to two Chinese companies, Pangda and Youngman who have jointly spent $125 million to purchase the company. Saab too like Volvo will be counted under Chinese Automobile Industry names. This has to seek an approval from National Development and Reform Council (NDRC), but the proposal to Chinese Govt. must be done too fast by these two firms.

This would be the second sale of Saab in close to two years. General Motors sold Saab to Swedish Automotive  in early 2010 for the same reason,Bankruptcy. But the trend continued for the company and the situation led to another sale, this time to Chinese companies. Ford Motors too sold its Volvo brand to Geely in 2010 at $1.8 billion.


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