Chinese suitor plans to build 50 stores for Saab
The Chinese auto dealership group Pang Da Automobile Trade Co. plans to build 50 stores in China to distribute Saab vehicles, according to Chinese media.
Pang Da, which has signed a tentative deal to invest in Saab's Dutch owner, Spyker Cars NV, will open Saab stores in major Chinese cities before the end of next year, reported the Beijing Times, citing Pang Da's spokesman.
Under the memorandum of understanding signed last week, Pang Da will buy 45 million euros (414 million yuan) worth of Saab vehicles in two batches.
It also will acquire a 24 percent stake in Spyker for 598 million yuan, and it will establish a joint venture to build Saab vehicles in China.
The Chinese auto dealer group has wired the first payment of 276 million yuan to Spyker to buy Saab vehicles, the newspaper reported.
Pang Da still needs to finalize its deal with Spyker. After that, the agreement must be approved by the Chinese government.
Previously, Saab vehicles were imported by General Motors Co. Last year, Saab sold only 257 units in China, according to J.D. Power and Associates.
