Currently reading: Saab's future still in the balance

The memorandum of understanding between Saab and its Chinese investors expired today

Saab’s future is no closer to being resolved even though the memorandum of understanding (MOU) between the Swedish car firm’s owner, Swan, and Chinese investors Pang Da and Youngman expired today.

The MOU was signed by the three parties on October 28 to underpin Swan’s agreement to sell 100 per cent of Saab Automobile to Pang Da and Youngman for £86m.

That deal hit a snag when General Motors, which has to approve any Saab sale, said it would not accept the sale of the car maker as it was laid out in the MOU.

GM, which has powertrain supply and technology licensing agreements with Saab, said the proposed change of ownership would not be in the best interests of GM shareholders.

Although the MOU has run out, it doesn’t necessarily spell the end of the deal. According to Saab sources, Swan, Pang Da and Youngman have all indicated that they are keen to pursue the deal and are trying to come up with a settlement that GM is happy with.

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