Saab says deal with Pang Da still possible

STOCKHOLM, Sweden, May 24 (UPI) -- Saab Chief Executive Officer Victor Muller said Chinese authorities informed him a deal with Pang Da was still possible.

The National Development and Reform Commission in China needs to approve major deals between foreign and Chinese companies and it has been reported that companies can submit applications for one deal at a time, the Stockholm News reported Tuesday.

Saab had already had a deal with Chinese car manufacturer Youngman submitted for review. This would, under the circumstances, derail the new deal with Pang Da.

But Muller said he has heard directly that the deal with Pang Da is still viable, the newspaper said.

Dutch company Spyker Cars purchased Saab from General Motors Co. in 2010, but the company has been under severe financial stress. Production has been halted several times in recent months while the company seeks to work out long-term financing in order to pay subcontractors, who have stopped making deliveries.