Although a previous arrangement with China’s Hawtai Motor fell apart during the approval process, Saab parent Spyker says it is confident its most recent deal with Chinese supplier Pang Da will receive the necessary regulatory sign offs.
A number of reports have suggested that the Pang Da-Spyker tie-up could be aborted by Chinese officials, but the Dutch supercar maker released a statement on Monday saying that the deal is progressing as planned.
“Based on our discussions with Pang Da we are confident that Pang Da will get the regulatory approvals needed to formalize the deal,” Victor Muller, CEO of Spyker and Saab, said in a statement. “I am very much looking forward to creating a strong business with Pang Da, initially in the distribution and subsequently in the manufacturing of Saab vehicles in China.”
However, despite Muller’s optimism, plenty of hurdles remain — including the necessary approvals from China’s National Development and Reform Commission, the Ministry of Commerce, and the State Administration of Foreign Exchange – leaving some to doubt if the partnership is even feasible.
“There is almost no chance for the government to approve Pang Da’s purchase of Spyker’s stake, let alone their plan to set up a new joint venture in China,” analyst Zhang Xin at Guotai Junan Securities in Beijing told Bloomberg News. “The deal doesn’t fit in the government’s plan for consolidation.” The Chinese government previously stated it wants cut its domestic automaker count by 90 percent.
Saab has already received $42 million out of the deal, and stands to get another $93 million if the deal is ultimately approved. However, if the deal collapses, Saab would be forced to repay Pang Da its initial $30 million.
References
1.’Spyker, Pang Da…’ view
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