Saab Financing Update: Additional Financing Acquired

Drew Dowdell - Chief Editor - CheersandGears.com

May 3, 2011

Following yesterday's announcement that Saab had negotiated 59.1€ million in short term financing with plans to restart production by the end of the week, today Saab announces that is has signed an agreement with Hawtai Motor Company to form a strategic alliance. The alliance includes joint ventures in manufacturing, technology, and distribution.

Hawtai will acquire up to a 29.9% equity stake in Saab for 120€ million and additionally extend a 30€ million convertible loan with a 6 month term.

Founded in 2000, Hawtai is a China-based privately-owned automotive company with its headquarters and R&D centre located in Beijing, and two production facilities located in Ordos, Inner Mongolia and Rongcheng, Shandong Province. Hawtai currently has an annual production capacity of 350,000 vehicles, 300,000 clean diesel engines and 450,000 automatic transmissions. By 2015, Hawtai aims to have raised this capacity to 1 million vehicles, 1 million engines and 1 million automatic transmissions, and to have established itself as a global leading automotive company.