Saab factory returns to production

TROLLHATTAN, Sweden, May 27 (UPI) -- Dutch firm Spyker Cars Inc., with investors from China on hand to watch, began making Saab cars again Friday, the company said.

Having run into a severe liquidity problem, Spyker had shut the Saab factory down for seven weeks, the Swedish news agency Tidningarnas Telegrambyra reported.

But Spyker reached a deal with Chinese auto distributor Pang Da, which transferred $42 million to Saab as payment for 1,300 cars.

The deal also involves Pang Da purchasing an equity stake in Saab valued at $92.7 million, which would give the Chinese firm 24 percent of the automaker.

Some portions of the deal have yet to be worked out, including approval from the Swedish National Debt Office, which must approve transfer of equity to a foreign firm.

Friday's return to production was preceded by a meeting Thursday between Saab chairman Victor Muller, Pang Da Chief Executive Officer Pang Qinghua and Sweden's enterprise minister Maud Olofsson.

After the meeting, Olofsson said, "They answered that even if Saab has production in China, production in Sweden will continue to be important."

"The company is an interesting partner considering that sales are what Saab needs to increase," she said.