Youngman to Bid $731 million for Saab

Published on January 20, 2012 by Tycho de Feijter

Saab China

China Youngman Automobile Group Co., Ltd. will submit a bid of about SEK5 billion ($731 million) for bankrupt Saab Automobile, owned by Swedish Automobile, Swedish business daily Dagens Industri reports, citing a person familiar with the situation.

According to the daily, Youngman is prepared to invest an additional SEK5 billion to develop new models for the Phoenix platforms.

The person said Pang Qingnian, chairman and owner of Youngman, is expected to visit Gothenburg, Sweden, next week to present the bid.

According to the report, the plan is to start production of the Saab 9-3 model 15 weeks after an agreement is signed.

Youngman’s plan neither requires General Motors’ (GM) approval nor participation, the report said. Saab’s existing models are based on technology licensed from GM. The U.S. carmaker’s refusal to continue this licensing following a recently proposed change of ownership led in part to the bankruptcy of Saab.

“It is good if GM is on board, but Youngman’s business plan doesn’t hinge on that. The new Saab which is planned can live without GM,” the daily cites the person as saying.

According to the daily, the bid and the new business plan is supported by Saab Automobile’s unions.

Via: FoxBusiness.com.

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