Chinese automobile company Youngman’s negotiation on purchasing the Swedish car maker Saab has been ceased, reported the Swedish economic newspaper Dagens Industri (DI) on Wednesday.
According to DI, the reason that Youngman is out of negotiation is that its bankruptcy administrators feel uncertain about the payments that are controlled by the Chinese bureaucracy and that they can take a long time. Lack of confidence, thus, leads 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.
According to the report, the Chinese Consortium consists of two companies; a battery company and a car company, which was speculated to be the BAIC (Beijing Automotive Industry Holding Co., Ltd.) which had earlier bought the whole platform of Saab 9-3 now used in the production of electronic cars.
“It is not only about electronic cars, but also the production of more hybrid cars which is relatedto the long-term development of electronic cars,” said the source of DI.
The report also mentions efforts of Volvo to establish partnership with the unnamed Chinese consortium, expecting to have support on the costs of the company’s future development. However, they are most likely not interested in buying Saab Parts AB, the spare parts company of Saab.