Chinese Pang Da Automobile Trade Co. said Wednesday is withdrawing its attempt to purchase Saab Automobile AB, after a Swedish court declared the automaker bankrupt.
On Monday, Swedish Automobile NV (Swan), the parent company of the cash-strapped Swedish automaker, said that Saab Automobile had filed for bankruptcy, thus closing the door to potential Chinese buyers Zhejiang Youngman Lotus Automobile Co Ltd and Pang Da Automobile Trade Co.
“In view of Saab being declared bankrupt, Pang Da Automobile Trade has decided to stop the acquisition transaction of Saab,” Pang Da said in a statement to the Shanghai stock exchange.
In its statement, Pang Da also said it will proceed to recover its down payment to Saab totaling 45 million euros, but will set aside reserves to protect itself from potential losses.
Saab’s vehicle sales, which peaked at 133,000 cars in 2006, have plunged in the last few years. The company sold 31,696 cars in 2010, missing a target of 50,000 to 60,000 vehicles.
“Saab’s end was inevitable. They had dodged the grim reaper for the past year, but in the end, the massive amount of money required to right Saab never materialized,” said a statement from Edmunds senior analyst Michelle Krebs.
“Despite the brand’s position on the leading edge of safety technology, Saab’s popularity in the U.S. and around the world waned as its product portfolio grew increasingly stale and reliant on General Motors for parts, platforms and design.”