Saab confirms deal with Hawtai Motor
Saab Automobiles and its owner Spyker cars today announced that they have signed an agreement with Hawtai Motor Group which would secure 150 million euros of medium-term funding, as well as a strategic alliance including joint ventures on manufacturing, technology and distribution.
For the deal to go through however, it must be approved by the Chinese authorities, the European Investment Bank and the Swedish National Debt Office.
Hawtai will invest 120 million euros in Spyker Cars which will give the Chinese 29.9 percent of shares in the company. The remaining 30 million euros will be given in the form of a convertible six-month loan with an interest rate of 7 percent.
Viktor Muller, CEO of Spyker and Chairman of Saab Automobile said in a statement:
" The partnership with Hawtai allows Saab Automobile ,on the one hand to continue executing its business plan since we secured the required mid-term financing subject to meeting certain conditions, whilst on the other hand it allows Saab to enter the Chinese car market and establish a technology partnership with a strong Chinese manufacturer," Muller said.
"With Hawtai's technology for clean diesel engines and their production capacity and the company's ambitious development programme, we have found the right partner to develop Saab and build a strong partnership," Muller added.
Richard Zhang, vice chairman of Hawtai, said that they viewed Saab Automobile as an "icon" brand among carmakers.
"It gives us access to innovative technology and an international network which otherwise would have taken us decades to build, this is a big day for a relatively young company which was formed only ten years ago." Zhang said this morning.