Swedish Automobile (SWAN) and Saab said today (4 July) they will develop three new models if approval for investment passes regulatory and other third party evaluations.
Saab announced the signing of final agreements with Pang Da and Zhejiang Youngman to convert the non-binding MOU relating to equity investment into binding agreements.
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A conditional agreement with Youngman Passenger Car Group was also inked for the formation of a Sweden-based joint venture company to develop three new product Saab models (NPJV).
The non-binding MOU announced on 13 June between SWAN, Saab Automobile, Pang Da and Youngman in terms of which Pang Da and Youngman will make an equity investment in the total aggregate amount of EUR245m (US$356m) in SWAN, have now been incorporated in binding agreements.
The parties are also working towards binding agreements for a strategic alliance consisting of a tripartite distribution joint venture and a tripartite manufacturing joint venture for Saab-branded and child brand vehicles in China, with the deals subject to approval from relevant authorities.
The Swedish automaker added the agreements would allow for the return of Russian businessman Vladimir Antonov as a shareholder/financier of SWAN and Saab Automobile, although the manufacturer added this would be “as soon as the parties at interest have cleared him.”
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By GlobalDataThe Swedish National Debt Office has previously said it would allow Antonov to take a stake in Saab, but any deal has yet to be approved by the European Investment Bank.
The NPJV will be 50%-owned by Saab and 50% by Youngman Passenger Car and will allow for expansion of the Saab product portfolio with three models, which until now have not formed part of Saab’s current and future product line up.
As such the NPJV will focus on developing three completely new Saab vehicles: the Saab ‘9-1’, Saab ‘9-6’ and Saab ‘9-7’.
Within the development process of these three new vehicle lines, Saab will be responsible for controlling and managing the design, development and testing process to the start of production and providing other necessary technical and quality control support.
For this, Saab will source existing capabilities and expertise from its technical development department in Trollhättan. Youngman will be responsible for providing the necessary financial investments in the joint venture. The agreement on NPJV is also subject to approval from relevant authorities.
“I am pleased to announce the signing of binding agreements [subject to obtaining regulatory approvals] with Pang Da and Youngman, as it underlines the confidence of all parties in a successful tripartite partnership,” said SWAN and Saab CEO Victor Muller.
“Establishing the New Product Joint Venture is a major step for both Saab and Youngman and marks the start of an exciting new partnership. This joint venture offers Saab Automobile the opportunity to develop models that were not envisaged nor funded in our original business plan: for instance, we will now be able to develop a small entry level Saab, a car that has long been on the top of our wish list.”
For his part Youngman CEO Pang Qingnian added: “The Saab ‘9-6X’ and Saab ‘9-7’ will be key to enhancing the prestige of the Saab brand to an even larger group of customers in China and the US, while the entry level Saab ‘9-1’ will appeal to urban motorists around the globe.”
