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Saab ends deal with Chinese investors

Oct. 24, 2011 at 3:46 PM   |   Comments

TROLLHATAN, Sweden, Oct. 24 (UPI) -- Swedish automaker Saab Automotive N.V. said it had terminated its agreement with Chinese investors once thought to be rescuers for the ailing firm.

"Pang Da and Youngman failed to confirm their commitment," to a financing agreement entered into in July, Saab said in a statement.

The Chinese auto dealer Pang Da had placed a large order for Saab cars in June that was to serve, essentially, as a down payment for further investment. Pang Da was, in time, to own 24 percent of Saab.

But Saab's production line in Trollhattan shut down for most of the summer due to a variety of financial problems, including the lack of parts from suppliers who said they had not been paid.

Saab, which is currently in bankruptcy said both Pang Da and Youngman -- formally Pangda Automobile Trade Co. and Zhejiang Youngman Lotus Automobile Co. -- had made an offer to purchase 100 percent of the company last week that was "unacceptable."

"However, discussions between the parties are ongoing," the firm said.

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