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Youngman and Pangda will submit Saab stake acquisition plan to NDRC within three weeks

Published August 4, 2011

In 2018 China Car Times was acquired by Autowise. This article originally appeared on ChinaCarTimes.com.

If Saab canât find an investor to pay its employees in two weeks, it will be forced to start liquidation process. Then its deals with Pangda and Youngman will become invalid completely, but due to restrictive policies by the Chinese government, the two Chinese companies are not allowed to make more investment to save Saab at the moment.

According to Chinaâs Interim Measures for Approval of Overseas Investment Projects, the projects with investment amount above $50 million should be approved by Chinaâs National Development and Reform Commission (NDRC) before the State Council. According to the latest deals inked by Youngman and Pangda with Saab, the two Chinese companies will pay 245 million euros to acquire Saab stake. They are likely to submit the feasibility plan for Saab case to NDRC within three weeks.

Pang Qingnian, Youngmanâs chairman, said that they could not make further investment in Saab by buying vehicles, as Youngman has limited quotas for vehicle import, but he believes Saab could go through the difficulties through various financing means.

Pangdaâs chairman Pang Qinghua said that if the plan could obtain approval in two or three months, Saabâs financial problem wonât exist, but there will be crisis if the approval takes a longer period.

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