Pang Da– The Day After

Now that the dust is settling, a much clearer picture of the agreement between Spyker and Pang Da is emerging. As we know, Pang Da (or Pangda as it is sometimes referred to) is the largest vehicle distributor in China comprising over 1,100 dealers which specialize in sales and service of over 49 brands. This includes many of Saab’s direct competitors, including Mercedes-Benz, Audi, Subaru, Volkswagen, Honda, Toyota and Hyundai. The first leg of the deal involves a €30 million purchase of 1,300 Saabs. The second leg marks a new direction for the group, and gives them an interest in promoting Saab above all the other brands they sell, a seat on the soon to be renamed Swedish Automobile’s board. What’s interesting to note is that in only one day, they recouped their entire stated investment and then some, as their shares today rose 4.1% on the Shanghai Composite Index, outperforming the market. It’s a sign of confidence in the deal and the investor confidence is a way of showing regulatory bodies that the private sector believes in the deal.

There have been a number of editorials written in the last 24 hours, most explaining why they think this deal not only makes sense, but is a better arrangement than the Hawtai deal. Of course there’s others, namely from a guy named Bertel Schmitt from thetruthaboutcars (who freely admits his initials spell BS), who is so convinced of his facts that he saw it to write two editorials about Saab’s new partnership. So in order to understand what the facts are, let’s break down the situation using facts we have heard from first person sources, namely Victor Muller himself.

Read morePang Da– The Day After

Will Saab build only China targeted cars?

Thylmuc has a very good question, imo.

I mean that is what they need to do to pay their debts, but will the next round of deliveries after the suppliers are paid and restart delivery be used to build China-targeted cars?!

Quoting pang Da will get about 1.300 cars for their 30 M € and those cars will arrive in mid September to China. For the further 15M€ I suppose that Pang Da will get about 700 cars making a total of 2.000 cars.

We also know, that the Saab workers that are being paid, but have to be at home, will alter on work 1 extra hour for any 2 hours they had to stay at home. This is about half a month of workforce Saab can use to build the cars many are waiting for, amongst them Pang Da.

So I don’t think we have to worry about Saab forgetting the other markets only to serve the deal with Pang Da.

Press Release: Saab and Spyker Enter Into MOU With Pang Da Automobile

Saab Automobile and Spyker Enter Into MOU With Pang Da Automobile On Distribution/Manufacturing Partnership For China And Equity Participation

Trollhättan, Sweden – Spyker Cars N.V. (Spyker) announces today that Spyker and Saab Automobile AB (Saab Automobile) signed a Memorandum of Understanding (MoU) with Pang Da Automobile Trade Co., Ltd (Pang Da), China’s largest publicly traded automobile distributor with over 1100 dealerships nationwide. The MoU includes a strategic alliance consisting of a 50/50 distribution joint venture and a manufacturing joint venture (MJV) for Saab branded vehicles as well as for an MJV-owned brand (the so-called ‘child brand’) in China. Saab Automobile will have up to 50 percent in the MJV, with Pang Da and a to-be-selected manufacturing partner owning the remaining shares.

Read morePress Release: Saab and Spyker Enter Into MOU With Pang Da Automobile

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