Pang Da Helped Saab To Resume Production

By Author: Marty Vergel Baes
Total Articles: 423
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Saab has stopped producing vehicles bearing its name last two months. The company’s production halted last April 6 when almost all of its suppliers went on a protest by stopping the deliveries of parts and other components used in manufacturing the company’s vehicles. The reason for this was Saab’s has a lot of unpaid bills which provoked its suppliers to go on strike. Due to this event, new car finders who are interested in buying Saab-made vehicles were left with no choice but to either wait for the company to resume production or purchase other vehicles of similar quality found in most new car finder websites. In short, Saab lost some of its potential buyers who are willing to purchase the vehicles they produce and sold through several auto financing options that their dealerships offer.

However, after two months, Saab was able to resume its vehicle production particularly at its Trollhattan factory. Their suppliers have also started delivering ...
... the parts and components needed by this Swedish car maker for their vehicles. Their assembly line went to work again and on the first day they were able to produce about 100 vehicles.

The rolling of Saab’s assembly line was primarily caused by the company’s accumulation of funds from other investors which eventually allowed their production to resume. A Chinese company which is the Pang Da Automobile was primarily the reason behind the Swedish car maker’s resurrection. Pang Da has provided Saab with the advance payment for the deal that they have concluded which amounted to $42.8 million. This amount was then used by Saab to produce their cars.

The $42.8 million dollars was just the first payment that Pang Da has given to Saab and this will be followed by another payment next month. However, this fund was not given to Saab out of goodwill. This is a part of the deal wherein Pang Da has purchased 1,300 units of cars for the first batch and this will be followed by a second batch.

Apart from this deal, Pang Da would be taking the 24% stake from the parent company of Saab which is Spyker. The two companies will then be taking a joint-venture in China particularly in distributing cars.