Industry News

Chinese to Buy Stake in Saab

The cash-strapped automaker Saab Automobile was sold off by General Motors last year. After that devastating event, the company received a financial bailout when Hawtai Motor Group agreed to invest in the Swedish firm and build cars together in China. Hawtai is a Beijing based company that is investing some $177 million to take part of 29.9 percent of Saab's owner, Spyker Cars NV.

The Chinese company also stated at a news conference in Beijing on Tuesday that it will also loan Spyker $44.6 million. Just last year GM sold Saab to Spyker, the maker of the C8 Aileron and other sports cars, for more than $200,000 as the Detroit auto-giant shed assets as part of its reorganization. It is hoped that Tuesday's agreement will help ease a cash shortage that forced Saab to halt production on March 29, and that it would also allow sales in China, where the carmaker hasn't been present since 2008, to resume.

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