Facing imminent collapse, Saab has agreed to a fire sale that will give two Chinese companies complete control of the Swedish automaker – thought the deal must still be approved by Chinese regulators.
The 100 million Euro – or $141.4 million — purchase price is a fraction of what the two new owners had originally offered for a significantly smaller stake in Saab, but the company appeared to have few other option, with a court-appointed administrator ready to force the troubled firm into bankruptcy.
Saab becomes the second Swedish automaker to fall into the hands of the Chinese, following Ford Motor Co.’s sale of its former Volvo subsidiary to China’s Zhejiang Geely Holding Group Co. in early 2010.
The new deal means “a much stronger future for Saab,” proclaimed Tim Colbeck, CEO of Saab’s U.S. sales subsidiary, during a conference call Friday morning. Colbeck said that efforts will begin almost immediately to re-open the automaker’s primary assembly plant, which has been idled by financial problems since March.