Saab calls off deal with Chinese automaker

Saab parent Spyker Cars NV said Thursday that a strategic partnership deal with China's Hawtai Motor Group that would provide cash to help Saab turn around its business has been terminated.

As a result, Saab may enter into a new strategic partnership with Hawtai or another Chinese party on manufacturing, technology and distribution in China, Spyker said in a release.

"Since it became clear that Hawtai was not able to obtain all the necessary consents, the parties were forced to terminate the agreement with Saab Automobile and Spyker with immediate effect. The parties will continue their discussions about a possible cooperation, however now on a non-exclusive basis," Spyker said.

"Spyker and Saab Automobile continue to work on securing short and medium term funding. To that end Spyker and Saab Automobile are negotiating equity and debt financing and/or technology licensing with various (strategic) Chinese partners," the release said.

The automaker added that discussions continue with the European Investment Bank on allowing Saab to complete a 29 million euros ($41.1 million) drawdown of its EIB loan and on getting the EIB's approval to sell and lease back Saab property.

Spyker added that "as soon as the EIB drawdown or other equivalent funding is confirmed, Saab Automobile plans to restart production depending on the outcome of discussions with its suppliers on terms to resume supplies of materials and services to Saab."

By Douglas A. Bolduc- Automotive News Europe