Saab Looks to Secure Long-Term Future with Chinese Manufacture Youngman

Cat with nine lives? Its quite amazing that Saab is still here today, and kicking. It has pulled quite a few rabbits out of its hat (yeah we know, we'll stop with the cliches now) over the past few years.

There was a deal with Hawtei that fell apart, followed by a distribution agreement with Pang Da. Chinese dealer network Pang Da provided a deal that was free of regulatory-approval and gave a short-term infusion of cash to Saab.

Youngman Automotive is a third investment partner that will provide the company with additional cash as well as access to Chinese manufacturing facilities needed to compete in the Chinese marketplace.

The deals involve distribution and manufacturing joint ventures. The MJV (manufacturing joint venture) will be owned 45 percent by Saab, 45 percent by Youngman and 10 percent by Pang Da. The DJV (distribution joint venture) will see Saab and and Youngman take 33 percent stakes with Pang Da at 34 percent. Its an interesting setup; what if there was conflict between the three?

Youngman will also take a 29.9 percent stake in Spyker, and Pang Da already signed a memorandum of understanding for a 24 percent stake in the automaker. Is this finally the deal that sets Saab on a sustainable path? We'll know when Chinese regulatory approval comes. One thing is pretty certain though; if this deal doesn't go through Saab is likely finished.