Chinese automobile company Youngman has ceased all negotiations with Swedish bankrupt carmaker Saab, Swedish Radio reports Wednesday, citing a source familiar with the matter.
According to a source, Saab’s bankruptcy administrators were not sure if the bid would beratified by the Chinese government, and their lack of confidence lead to the end of Youngman’s negotiation.
The negotiations with another Chinese company, the Consortium of Electric Cars, have become the main focus of the bankruptcy administrators as they aimed to produce over 100,000 hybrid cars annually.
The consortium, led by former director of Volvo company Karl Erling Trogen, would bid lower than Youngman because it would probably not be interested in the component company Saab Automobile Parts, said the source.
Reports say the bidding is meant to close in the next week, but we still don’t know who all the bidders are – India’s Mahindra & Mahindra, China’s Geely/Volvo and at least one as-yet-unknown entity are after the whole company or select assets.
In other un-related news, the Swedish Government has applied for EU-money to help those that lost their jobs when Saab Automobile filed for bankruptcy. It concerns 98 million kronor, of which half will be financed by the Swedish government, reports the news agency TT.
The money will be used to help 1,350 people and will go towards things such as training and relocation allowances.