Saab’s parent company Swedish Automobile NV said on Monday it converted the non-binding memorandum of understanding with Pang Da Automobile Trade Co. and Zhejiang Youngman Lotus Automobile Co into a final agreement. However, the deal is still subject to regulatory approval from Chinese and Swedish authorities as well as the European Investment Bank.
In addition to the above agreement, Saab announced the formation of a Sweden-based joint venture company between itself and Youngman called NPJV, which will focus on the development of three new product models.
According to the Swedish automaker, these include an entry-level 9-1 and two premium cars, named 9-6X (most likely an SUV because of the “X” designation) and 9-7 (presumably a 7-Series competitor) which didn’t feature in Saab’s original plans.
The NPJV will be 50 percent owned by Saab Automobile and 50 percent by Youngman Passenger Car.
“Within the development process of these three new vehicle lines, Saab Automobile will be responsible for controlling and managing the design, the development and testing process to the start of production and providing other necessary technical and quality control support,” Saab said in a statement.
The Swedes added that Youngman’s passenger car division will be “responsible for providing the necessary financial investments in the joint venture”. Saab did not say where these models will be built, but manufacturing will most likely take place in China.
Mr. Pang Qingnian, CEO of Youngman, commented: “The agreement on the New Product Joint Venture brings together the best of both worlds, merging the industrial and financial strength of Youngman Passenger Car with the state-of-the-art technical expertise of Saab Automobile. The Saab ‘9-6X’ and Saab ‘9-7’ will be key to enhancing the prestige of the Saab brand to an even larger group of customers in China and the US, while the entry level Saab ‘9-1’ will appeal to urban motorists around the globe.”
