New Youngman bid for Saab
Chinese car company Youngman has offered to buy bankrupt Swedish automaker Saab for $470 million, according to business daily Dagens Industri. Indian company Mahindra & Mahindra is also said to be interested in buying Saab.
The bid is the lowest price that Saab’s creditors and property owners are prepared to accept, according to an anonymous source quoted by the newspaper.
Youngman is also offering to investm $1.5 billion in order to restart production at the factory in Trollhättan, western Sweden.
Indian company Mahindra & Mahindra has also showed an interest in Saab and is in Gothenburg to negotiate with the bankruptcy trustees.
Another Chinese company Pang Da, initially very interested in buying the troubled car manufacturer, has pulled out since the investment became too costly.
Last year the company paid almost $US60 million in advance for cars that were never produced, news agency TT reports.
A handful companies are interested in buying Saab and restart production in Trollhättan, according to trustee Hans Bergqvist. Most of the companies are willing to buy the company because of the brand’s good reputation.
Business daily Dagens Industri told Radio Sweden that today the trustees announced that they hoped a deal would be reached before the summer.
"The trustees are evaulating the bid and are still hoping to present a done deal before the summer," DI's reporter Afriditi Logothetis told Radio Sweden.
"They will not evaluate whether the potential buyers will keep their promises of restarting productuion or future financing, so it still remains to be seen whether production will begin again at Trollhättan."