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.

Go deeper with GlobalData

Data Insights

The gold standard of business intelligence.

Find out more

“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.

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

How well do you really know your competitors?

Access the most comprehensive Company Profiles on the market, powered by GlobalData. Save hours of research. Gain competitive edge.

Company Profile – free sample

Thank you!

Your download email will arrive shortly

Not ready to buy yet? Download a free sample

We are confident about the unique quality of our Company Profiles. However, we want you to make the most beneficial decision for your business, so we offer a free sample that you can download by submitting the below form

By GlobalData
Visit our Privacy Policy for more information about our services, how we may use, process and share your personal data, including information of your rights in respect of your personal data and how you can unsubscribe from future marketing communications. Our services are intended for corporate subscribers and you warrant that the email address submitted is your corporate email address.

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.”