Saab, a company virtually bankrupt and and which has not produced a car in months, will be partially owned by and rescued by a large Chinese bank, according to Reuters.
Saab’s Dutch owner and China’s Zhejiang Youngman Lotus Automobile have agreed that the Bank of China, the nation’s fourth-largest bank by market value, will come in as part owner of the ailing carmaker, according to a source familiar with the deal.
Under the new deal, the Bank of China will replace Chinese investor Pang Da Automobile Trade Co. Youngman and the Bank of China will own just under 50 percent of the company.
Saab has had several owners over the last decade, the most notable of which was GM (NYSE: GM). The US company bought the Swedish one as a means to diversify its global brands. The plan did not work. Saab’s sales remained miniscule. GM, financially troubled on its own, dumped Saab four years ago.
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