Following a failed takeover in 2011, China’s Zhejiang Youngman Lotus Automobile is said to be preparing a new bid for bankrupt automaker Saab. Youngman, along with China’s Pang Da, tried unsuccessfully to purchase Saab from Swedish Automobile prior to the company’s December bankruptcy filing.
Two sources with knowledge of the subjected revealed to Reuters that Youngman is preparing to make a bid “worth several billion Swedish crowns” for Saab. The offer is expected to come as early as next week.
However, several large hurdles still stand in the way of Youngman’s purchase of Saab, including the approval of former Saab owner General Motors. GM blocked Youngman’s last attempt to purchase Saab as it didn’t want its vehicle technology to fall into the hands of the Chinese automaker.
The sources didn’t reveal how the company planned to get around that road block, but a lawyer for Youngman said the company would develop technology independent of GM.
Pending sales of some of Saab’s key businesses could also put the brakes on the bid. Saab’s receivers have already come to terms with engineering firm Semcon SMC.ST over the sale of some of Saab’s business, leaving just parts of the company available to Youngman.
“The big danger is that Saab and Semcon have agreed a deal with the receiver over large parts of Saab Automobile that would make it impossible for anyone to buy Saab as a whole,” one of the sources said.
It also remains unclear if only the rights to the Saab name are for sale, or if the company’s technology is also up for grabs.
Youngman claimed in December that it had purchased the rights to Saab’s new Phoenix vehicle architecture, but nothing has ever come of that announcement. The Phoenix platform reportedly uses very little in the way of GM components, so it remains possible the architecture could wind up in the hands of Youngman.
