Saab and Pang Da Automobile have signed a very substantial letter of intent to cooperate. The cooperation helps, the final treaties are ratified, Saab from the liquidity crisis and opens up further opportunities for the future of the car maker.
- Pang Da is the largest private car wholesaler and importer in China. In 23 provinces with over 1100 dealers, Pang Da sells Audi, VW, Hundai, Infinity and a wide range of local brands. Saab gains access to the largest distribution network in China, a unique opportunity for someone who is actually late.
- Pang Da pays € 30 million in advance for Saab automobiles to be delivered, after 30 days, under “certain circumstances”, another € 15 million will be transferred for additional Saab vehicles. We do not know which clauses are in the draft contract for the other 15 million, but since it involves the import of vehicles and the sum is less than € 100 million, according to Victor Muller, Pang Da does not need any approval from the authorities. A vote of confidence from Pang Da, proof of financial strength and a kind of "life insurance" for Saab.
- Pang Da participates in Saab's mother Spyker for € 65 million and strengthens the equity base of the Swedes. Pang Da receives 24% of Spyker and thus deepens cooperation in the long term. However, this business requires the approval of the EIB, GM, debt management and government. This ensures medium-term financing.
- Saab and Pang Da found a sales company in China, which is owned 50% by both partners. The chances for this are rather vague, here the approval of the NDRC is required. A similar partnership request from Opel to a Chinese manufacturer was recently buried by the NDRC.
- Saab and Pang Da found a new car brand, a fire that is only intended for China. This idea holds plenty of opportunities, so Saab could sell engineering services for the new brand.
- Saab and Pang Da are looking for a production partner in China to manufacture Saab products for China in the country in the future. The search has only just begun, the partner has not yet been named.
Pang Da appears to be a more transparent partner than Hawtai, where the know-how was only based on purchased licenses. However, Pang Da is only a "trading partner" who has no industrial know-how. Saab's alignment with a larger industrial partner would have been desirable, but that's the only limitation we see.
If the contracts come to fruition, then Victor Muller has done his masterpiece and made a good deal for both partners.