The Swedish car maker Saab has said it is terminating a 245 million euro investment deal with two Chinese companies.
Saab’s owners said carmaker Zhejiang Youngman Lotus and Pangda — which is China’s biggest car dealer — had failed to confirm their commitment to the agreement as well as a bridging loan to enable it to pay suppliers and workers. Instead the Chinese wanted an outright buyout.
Saab’s shares slumped on the news.
However it may not be the end of the road to the east as the 60-year-old company also said it is still talking to the Chinese.
Saab has been under a court order protecting it from bankruptcy claims while it tried to reorganise and raise new funds but last week the court-appointed administrator moved to end that protection.