Saab Finds New Lifeline In Pangda? Don't Hold Your Breath

Just when you think the Saab saga is settled for just a little while, something gets thrown in the mix to mess things up.

We've got to hand it to the guys at Spyker - they keep trying over and over. No one ever though it would be easy for a diminuitive company like Spyker to handle Saab, and that has proved to be just the case.

The deal with Chinese manufacturer Hawtei Motor Group Company Limited struck earlier this month has fell apart. Automotive News reports new deal with Chinese automobile distributor Panda Automobile has been tentatively worked out.

Rather than focus on an immediate stake in the company, the deal focuses on large purchases of Saab cars in bulk. These purchases will keep Saab's factories (factory?) humming, as well as providing a much-needed injection of cash.

Panda Automobile is China's largest distributor, and thanks to different regulations for distributors rather than manufacturers, the deal is likely to have less governmental roadblocks.

The deal centers around an initial purchase worth 30 million euros (about $42.4 million USD), with a second sale worth 15 million euros (approx $21.2 million) following later. This would carry Saab through for another year, hopefully until a longer-term deal with a Chinese company can be struck. If the deal goes well, Pangda could take a stake in Saab.

Spyker Chief Executive Officer Victor Muller sounded a confident tone: "Both parties are confident that this partnership allows Saab Automobile and Pangda to create a strong business, initially in the distribution and subsequently in the manufacturing of Saab vehicles in China.

Pangda is a forward-looking, profitable and well-capitalized public company that, as the single largest automobile distributor in China, sees enormous potential for our brand in their home market."

Fingers crossed that this one (finally) is the deal that turns out for Saab, enabling some of this drama to be put behind them.