Chinese automaker Youngman is distancing itself from reports it is to inject around EUR800m (US$1.bn) into ailing Saab, although it did concede the two proposed joint ventures in China could feasibly invest capital.

“We don’t have any plans about EUR800m,” Youngman board executive director Rachel Pang told just-auto from China. “If Saab needs this money to develop new models, that means they have the plan for this money.

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“We will invest EUR136m into Saab and in the future, with Saab, Youngman and [distributor] Pang Da, [we] will be the shareholders of Saab. We will discuss the business plan and then we will help Saab to get more finance. That could come from banks, from the Chinese joint venture companies.

Speculation has hinted the joint ventures could be set up within weeks, but Saab has the more urgent requirement to stay alive through an appeal against its bankruptcy protection rejection last week.

Saab limited itself to hinting there could be more cash from Youngman and Pang Da but did not divulge details. “What Youngman and I believe Pang Da have said is they expect to be investing more money over and above the [total] EUR245m,” a Saab spokeswoman in Sweden told just-auto.

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“They expect to be investing more money down the road.”

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The spokeswoman also noted work had already been started in anticipation of cooperation with its Chinese partners. “I am aware preparatory [work] has been going [on], she said.

“We have not been just sitting round waiting. From Saab’s point of view, it is that we can get production started and start earning our money by selling cars.”