Geely interested in Saab? image

According to Swedish newspaper Dagens Nyheter China’s Zhejiang Geely, which owns Volvo, has shown “genuine interest” in Saab AB (SAABF) and approached the lawyer in charge of Saab’s restructuring.

Youngman may want to pull out of the deal and its agreement to put money into Saab in the longer term, Dagens Nyheter wrote on Thursday, citing an unnamed source with knowledge of the situation.

“One sign of this is that Geely has approached Saab’s reconstructor, lawyer Guy Lofalk,” a source told the Swedish newspaper.

Saab, which is currently owned by Swedish Automobile, is in the midst of a restructuring programme and is under creditor protection as it waits for an injection of investment from two other Chinese organisations, Pangda and Zhejiang Youngman Lotus Automobile.

Saab has lurched from one crisis to another since early this year and shut down in April, unable to pay its suppliers who are owed more than 150 million euros.

Yesterday, Saab Automobile announced that the payment from Youngman was delayed and that it is not known when they will get it.

Update: Geely denies reported interest in Saab
Lawrence Ang, executive director of Geely Automobile Holdings Ltd, the Hong Kong-listed arm of Geely, denied the newspaper report – Thursday Oct 6.

“According to my understanding, we have no such plan,” he said, adding that Geely was busy after taking over Volvo.