China’s Youngman still wants to buy Saab

Published on November 10, 2011 by Tycho de Feijter

China’s Zhejiang Youngman Lotus Automobile Co said it still wanted to invest in ailing car maker Saab after General Motors said on Monday it would stop supplying components and technology if Pang Da Automobile and Youngman succeeded with their acquisition bid.

Youngman director Rachel Pang said on Wednesday the company will do “everything they can” to support Saab’s survival. She told Swedish news agency TT Youngman still wants to buy Saab.

“Of course we do. If you are afraid you cannot succeed in business. There are always difficulties. One has to find solutions, not just give up,” she was quoted by TT as saying.

Pang declined to answer if Youngman would consider becoming a minority owner in Saab, owned by Swedish Automobile .

Saab has been under court protection from creditors since September.

The proposed rescue deal for Saab had to be approved by GM since the U.S. group still has preference shares in Saab and has supplied the Swedish auto brand with crucial components.

GM, which operates in China in a partnership with state-run SAIC Motor Corp Ltd , said on Monday it had concluded that continuing to supply vehicles and technology to Saab’s new owners would run counter to the interest of its own shareholders.

Via: Reuters.

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