Saab Auto nears deal with Chinese carmakers

Saab Automobile, the cash-strapped Swedish carmaker owned by Spyker Cars NV, is negotiating an investment and production deal with three Chinese carmakers, which may result in a deal within days, two people with direct knowledge of the matter said. Saab is in talks with Great Wall Motor Co, China Youngman Automobile Group Co and Jiangsu Yueda Group Co, said the people, who declined to be identified as the discussions are private. The talks with all three companies are advancing and a deal with one could soon be finalised, the people said. Saab is seeking a Chinese partner to raise funds amid a cash crunch that has forced it to halt production. The move would also give it an entrance to the world's largest auto market. Yesterday Russian banker Vladimir Antonov won tentative approval from former Saab owner General Motors Co (GM) and the Swedish National Debt office to invest in Spyker. A Chinese partnership agreement would likely include an investment in the Swedish carmaker as well as forming a joint venture to produce Saab vehicles in China, the people said. It may also include the Chinese company distributing the Swedish brand at its dealerships. Eric Geers, a Saab spokesman, declined to comment on the talks. Shang Yu Gui, Great Wall's director of communications, said he has "no idea" if talks are happening. An official at Jiangsu Yueda Group Co.'s president's office declined to comment as did staff in the chairman's office at China Youngman. - Bloomberg