Saab gets a ray of hope from China

Saab lost its bid for court protection from creditors last week, but there’s a ray of hope as its putative Chinese investors proclaim approval for their deal likely.

The saga that is the long and painful demise of Saab seemed to reach its nadir last week when courts in Sweden refused to offer the beleaguered car maker sanctuary in its protection.

We thought that would be the end for Saab – despite a never-say-die appeal of the decision by Victor Muller, due to be heard tomorrow – with nowhere left to hide from trade supplier debts of €150 million, and the wrath of Sweden’s unions ready to file for Saab’s bankruptcy over unpaid wages for Saab employees.

The nadir for Saab should reasonably be followed by its rapid consignment to the annuls of motoring history, but a tiny glimmer of hope has risen from Saab’s putative investors in China.

The investment of €245 million in Saab by Youngman and Pang Da has now apparently been approved at a local level and approval at a provincial level is expected to be granted on Wednesday.

The big hurdle for the investment is then approval by China’s National Development and Reform Commission in Beijing. That would be the final green light, allowing Pang Da and Youngman to come to Saab’s rescue, albeit in return for a majority stake in Saab.

To add to the good news on the approval process so far, Rachel Pang – a director of Pang Da – told Svenska Dagbladet:

We have ongoing contact with NDRC in Beijing. We are getting positive signals. I have a good feeling about this.

Which, at face value, is very good news for Saab, its employees and its suppliers.

Of course, the cynical may say that the timing of this news, just hours before Swedish Courts hear Victor Muller’s appeal of their decision not to offer Saab court protection, is nothing more than a ploy to sway the appeal judges and buy time.

We couldn’t possibly comment.