A last-minute rescue deal to save Saab is virtually certain to be blocked by the Chinese government
Jim Holder
11 October 2011

A last-minute rescue deal to save Saab is virtually certain to be blocked by the Chinese government, Autocar has learned, meaning the company is almost certain to be declared bankrupt – possibly as soon as later today.

Saab, which is currently in control of the courts while it applies to restructure, has been waiting on a £60 million loan from Chinese carmaker Youngman in order to pay wages.

In addition to that short-term loan, Saab is waiting on the Chinese government to approve a further £210m investment in Saab by Chinese car firms Zhejiang Youngman Lotus Automobile and Pangda.

However, Autocar has learned that the Chinese government is unlikely to ratify any investment or takeover of Saab as the sale does not include the acquisition of any new intellectual property rights. Former Saab owner GM already has a deal to transfer Saab's Epsilon production line and tooling to its Chinese partner firm SAIC.

Reports in Sweden suggest the administrator handling Saab's restructuring under court protection could pre-empt the Chinese government decision, which is not expected to be made formal until the end of this week at the earliest, and declare Saab bankrupt later today.

The Swedish government has already stated it won't bail Saab out.

Add your comment

Log in or register to post comments

Find an Autocar car review

Driven this week

  • Volkswagen Passat Alltrack 2.0 TDI 4Motion front view
    First Drive
    17 February 2017
    Latest Passat Alltrack is one of the best examples of that most inoffensive of things, the all-seasons estate
  • 2017 Hyundai i30 1.0 T-GDi 120 SE Nav front view
    First Drive
    17 February 2017
    A UK drive in the Hyundai i30 reveals a rounded and capable hatchback, but not one to challenge the class best
  • Peugeot 5008
    First Drive
    16 February 2017
    Handsome seven-seater offers a smart interior with certain key practicality benefits, but it’s a slightly mixed bag to drive.
  • Car review
    15 February 2017
    The fifth-gen Discovery is simply one of the world's most capable cars, even with the addition of a 2.0-litre engine
  • Tesla Model X
    Car review
    15 February 2017
    The electric propulsion pioneer takes aim at the seven-seat SUV market