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How is Youngman Lotus and Pang Da’s offer of $142 million equivalent for Saab much better than the two Chinese companies’ previous offer you to buy 53.9 percent for the equivalent of $346.6 million?

They “have resources to invest in Saab” to ensure lengthy-term viability, says Saab Cars North America President and COO Tim Colbeck.

Regardless of Saab’s and Saab North America’s optimism for this deal, the acquire by a tiny Chinese automaker and a Chinese dealership organization remains subject to their government’s approval.

“We’re expecting to get that within a couple of weeks,” Colbeck says. Youngman/Pang Da’s memorandum of understanding expires on November 15. China’s National Development and Reform Commission began approval proceedings for the 53.9-percent deal 4 or 5 months ago, Colbeck says, and Saab “has no indication it has stalled.”

In other words, Saab expects the approval approach to finish up by mid-November even as the deal has changed.

“One-hundred percent ownership at a lower price really should be additional favorable to the NDRC,” Colbeck says.

Swedish Automobile chief and former Spyker Automobiles chief Victor Muller will remain as Saab’s CEO till a new CEO is found. Muller then will stay in an advisory role to Saab, Colbeck says.

Colbeck says Saab and the Swedish government anticipate most production to remain in Trollhattan, plus GM’s Ramos Arizpe, Mexico plant for the 9-4x. Chinese production of Saabs for neighborhood consumption is planned to be portion of the deal. Trollhatten has effectively been shuttered due to the fact late March, with a couple of brief restarts since. Saab 9-4x production in Ramos Arizpe ended with the 2011 model by early September, with production of a ’12 9-4x but to start. Saab says it has about 3,000 cars in its North American inventory.

Michele Tinson, spokeswoman for Saab Cars North America, stated that the takeover is expected to occur on or ahead of November 15. Production lines in Sweden ought to be able to restart about eight weeks following the takeover bid is completed — which implies Saab may perhaps not resume making vehicles until 2012.

For now, at least, the lights are nonetheless on at Saab. Regardless of teetering at the edge of bankruptcy for months, it seems the Swedish automaker may survive under Chinese ownership. -Jake Holmes contributed

Source: Saab