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Cash-strapped Saab links up with China's Hawtai

Saab Automobile said Monday it had signed a strategic partnership agreement with China’s Hawtai Motor, following talks with several potential Chinese partners to help solve Saab’s cash shortage, the Financial Times reported. Saab halted production for the past three weeks after several suppliers stopped deliveries because of unpaid bills. No further details were given on the Saab-Hawtai link-up, but Saab said the cooperation would be formally announced at a signing ceremony in Beijing on Tuesday. Founded in 2000, Hawtai Motor has manufacturing plants in Shandong and Inner Mongolia with a production capacity of 200,000 vehicles a year. Saab received a capital injection last year from Spyker Cars (SPYKR.AMS) of the Netherlands, but the small Dutch company has struggled to revive Saab’s fortunes; Saab’s sales fell to less than 32,000 vehicles in 2010, from a peak of 130,000 under its previous owner, General Motors (GM.NYSE).

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