Chinese set to buy Saab

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Chinese set to buy Saab

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The struggling Swedish carmaker Saab looks likely to become the latest European firm to be snapped up by the Chinese.

The company has not made a car for months and during that time has teetered from one cash crisis to another.

It was under court protection to prevent creditors filing for bankruptcy, a process that was in danger of collapse before this new agreement.

The parent company Swedish Automobile said a memorandum of understanding has been signed with two Chinese companies.

It added that the car manufacturer Youngman and the dealership Pang Da would pay 100-million euros to buy Saab.

The current chief executive said car production would continue in Sweden, and would start in China too.

Swedish Automobile – in the guise of Spyker – had already saved Saab from closure once, buying it from General Motors early last year.

If successful, this latest takeover would be the second Chinese buyout in the Swedish car industry in just over 12 months.

Geely bought Volvo from Ford in August 2010.