Youngman has welcomed the decision of the Swedish ambassador to China to meet National Development and Reform Commission (NDRC) officials involved with deciding if Chinese companies are able to invest in Saab.
Stockholm’s ambassador to Beijing, Lars Freden has intervened as Saab reaches crisis point back home in Sweden and as it fights to enter bankruptcy protection ahead of a 26 September Court hearing to decide if two of its unions have a case.
Go deeper with GlobalData
Discover B2B Marketing That Performs
Combine business intelligence and editorial excellence to reach engaged professionals across 36 leading media platforms.
The NDRC is now reviewing the application by distributor Pang Da and manufacturer Youngman, who want to invest EUR245m (US$336m) into Saab, after the process went through local and regional scrutiny.
Saab has already missed August salary payments to its employees and is fast approaching the September wages deadline, while any concrete financial indication from China could be helpful to the Gothenburg Appeal Court’s consideration of the automaker’s wish to enter voluntary reorganisation.
“The Swedish ambassador had a meeting with the National Development and Reform Commission yesterday (13 September) at 14:00 in Beijing,” Youngman board executive director Rachel Pang told just-auto from China. “It is good to have the ambassador’s support.”
This is not the first time the Swedish Embassy in China has been linked with Saab. In May earlier this year the automaker described as “unfortunate” a leaked document from the Embassy in Beijing that appeared to contain “subjective” views on the proposed Hawtai investment in the automaker.
US Tariffs are shifting - will you react or anticipate?
Don’t let policy changes catch you off guard. Stay proactive with real-time data and expert analysis.
By GlobalDataA source in Beijing at the time told just-auto Freden had said it was the Embassy’s job to report “what we know and what we don’t know,” although it was never the intention to comment on business deals.
Pang – who is Saab project director at Youngman – confirmed to just-auto the Chinese manufacturer was already working on various documents the NDRC required and was confident of final approval.
“Yesterday we had Provincial Development and Reform Commission approval and today we had people together with documents flying to Beijing,” she said. “They think it is good for the two Chinese partners to invest in Saab.
“The next step for Youngman is we have started preparing documents for [the NDRC] commercial department. “There are three phases – first is the NDRC and then the national commercial department – then some days to have foreign exchange approval. We are preparing for the second phase already. I am confident we will get approval.
The Saab project director added Youngman was in contact with the Swedish manufacturer “every day.”
