Little traction on Saab deal as deadline passes

Chinese auto distributor Pang Da Automobile Trade Co Ltd and automaker China Youngman Automobile Group Co Ltd are still in talks with Swedish Automobile NV to acquire the Saab brand, although the memorandum of understanding (MOU) signed on Oct 28 expired on Nov 15.

Pang Da said in a statement on Nov 16 that the company and other parties are discussing extension of the non-binding purchase agreement.

The tentative deal is dependent on approvals from the Chinese and Swedish governments as well as General Motors, the former owner of Saab. Several days after the Pang Da-Youngman MOU was first signed, GM announced it did not support the plan.

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