Saab has drummed up another Chinese partner. The Swedish automaker has signed a memorandum of understanding with Zhejiang Youngman Lotus Automobile Company for a €245 million ($352M USD) equity sharing distribution and manufacturing deal. The new partner will take on a 29.9 percent stake in Spyker for a total of €136 million at €4.19 per share (about $6), and will have the option to nominate two individuals to the Spyker board. In addition, Youngman will own a 45 percent stake in a manufacturing joint venture with Saab and fellow investor Pang Da, which will own 45 and 10 percent stakes in the venture, respectively.

Youngman, Pang Da and Saab are also set to enter into a distribution joint venture which will eventually see Saab vehicles sold in China. Youngman and Saab will each hold a 33 percent stake in that effort while Pang Da will hold the remaining 34 percent.

The memorandum of understanding is still subject to all of the necessary legal approvals from both the European Union and the Chinese government, and as such, is not binding in any way. Hit the jump for the press release.
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Saab Automobile, Spyker, Pang Da And Youngman Enter Into MOU On Distribution/Manufacturing Partnership For China And Equity Participation

Trollhättan, Sweden: Spyker Cars N.V. (Spyker) announces today that Spyker, Saab Automobile AB (Saab Automobile), Pang Da Automobile Trade Co., Ltd (Pang Da) and Zhejiang Youngman Lotus Automobile Co., Ltd. (Youngman) signed a nonbinding memorandum of understanding (MOU). The MOU includes an equity participation in the total aggregate amount of about EUR 245 million as well as a strategic alliance consisting of a three partite distribution joint venture and a tripartite manufacturing joint venture for Saab-branded and child brand vehicles in China.

On 16 May 2011 Spyker and Saab Automobile signed a memorandum of understanding (the 16 May MOU) with Pang Da, China's largest publicly traded automobile distributor with over 1,100 dealerships nationwide. That 16 May MOU included a strategic alliance consisting of a 50/50 distribution joint venture (DJV) and a manufacturing joint venture (MJV) for Saab branded vehicles as well as for an MJV owned brand (the so-called 'child brand') in China. It was agreed that Saab Automobile would have up to 50 percent in the MJV, with Pang Da and a to-beselected manufacturing partner owning the remaining shares. Pang Da and Saab Automobile have now agreed with Youngman to become the manufacturing partner in the MJV (in which Youngman will take 45 and Pang Da 10 of the shares, Pang Da 34.

Under the May 16 MOU, Pang Da would take an equity stake in Spyker for a total amount of EUR 65 million, representing 24 percent of Spyker on a fully diluted basis. With Youngman entering as a new shareholder in Spyker, the equity stake of Pang Da in Spyker will remain at 24 % raising its investment to EUR 109 million. The share price remains at EUR 4.19 per share and Pang Da will have the right to nominate up to two members of the Supervisory Board of Spyker.

Youngman will take a 29.9 % interest in Spyker on a fully diluted basis investing EUR 136 million at EUR 4.19 per share. Youngman will have the right to nominate up to two members of the Supervisory Board of Spyker.

Spyker, Saab Automobile, Pang Da and Youngman will set up joint ventures with respect to the manufacturing of Saab branded and child branded vehicles and the distribution of Saab branded and child branded vehicles for the China market. Saab Automobile and Youngman will each have a 45. Saab Automobile and Youngman will each have a 33.

The MOU is non-binding and the transactions following the MOU are subject to agreement on definitive transaction documents and certain conditions, which include consents from certain governmental agencies and third parties.

Victor Muller, CEO of Spyker and Saab Automobile said: "Having entered the MOU on May 16 with Pang Da, we collectively immediately set out to identify the most suitable (manufacturing) partner to join Saab and our joint ventures. We are convinced that Youngman represents all the qualities required to make Saab and the joint ventures a success. This MOU not only shows the belief of Pang Da and Youngman in our products for the Chinese market, it also is a step that significantly strengthens Saab's financial position and would secure the mid and long term financing of Saab Automobile. Both Pang Da and Youngman have demonstrated a similar entrepreneurial mindset as we have which we feel will be instrumental to establish Saab's presence in China. I am very confident that based on their experience, proven skills, their ability to move quickly and their financial strength, we found the partners that are best suited to fully explore Saab's potential in China."

Mr. PANG Qinghua, CEO of Pang Da, said: "Since our visit to Saab Automobile in Sweden we are even more convinced of the potential of Saab in the global market and the Chinese market, the number one market in the world, in particular and we intend to fully explore it. Not only are we impressed with the current and future product line up that is very well suited to the needs of the Chinese market but we are particularly impressed by their design, engineering and manufacturing skill.

Mr PANG Qingnian, CEO of Youngman said: "We have been in contact with Saab Automobile for quite some time and we are very pleased to have reached an agreement with both Pang Da and Saab. We feel that Saab as a premium European brand appeals strongly to the taste and preferences of the Chinese customer who is looking for top quality vehicles with the highest levels of safety, driving pleasure and comfort and an unmistakable design language. Youngman is an automobile industrial

group that produces and sells Youngman branded motor cars, MAN brand heavy type trucks and automobile spare parts. Our Manufacturing facilities are state of the art and are exactly tailored to build Saab vehicles at the highest quality standards. We look forward to a long lasting and successful relationship with Saab Automobile and Pang Da both in China as well globally through our investment in Saab."


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    • 1 Second Ago
  • 6 Comments
      tenspeeder
      • 3 Years Ago
      Go Saab!!!!
      ammca66564
      • 3 Years Ago
      OK, this is moving toward the kind of money Saab needs to survive. Possibly.
      • 3 Years Ago
      [blocked]
      F1tifoso
      • 3 Years Ago
      Wonder how this matches up to the company that GM sold the old generation Saab tooling to - they sell the old car cheap, and the new companies sell the new car for more? May be a hell of a lot of happy Chinese tooling around in Saabs soon!