Saab continues its search for a lifeline

2012 Saab 9-5

Saab still hoping to resume production of Saab 9-5.

Trollhattan, Sweden — The Saab saga continues. The automaker is not quite dead yet.

Swedish Automobile N.S, (Swan) reported  it is in talks with Zhejiang Youngman Lotus Automobile Co. Ltd. (Youngman) and a Chinese bank about the possibility of an equity interest in Swam.

The talks include a short-term solution that would enable Saab to pay November wages and continue its plans for reorganization.

The troubled automaker cautioned that the outcome is not certain and that any possible deal would require the approval of all relevant parties.

Saab announced in late October that it had agreed to sell the company to Pang Da, China’s largest automotive retailer, and Youngman, a Chinese auto manufacturer, for $141.6 million. The price is a fraction of the $352 million the two companies had offered previously for a 53-percent share in Saab.

The latest announcement contained no mention of Pang Da, China’s largest automotive retailer, so it is unclear if Pang Da is still involved in the negotiations.

Following the October announcement, General Motors. Saab’s previous owner, indicated it was opposed to the sale, noting that it would be hard to approve a sale that could hurt GM’s competitive position in China.

General Motors has veto power because it still holds preferred shares in Saab and supplies Saab with important automotive components. The Saab 9-4X is based on GM’s Cadillac SRX crossover vehicle and is built in a GM plant in Mexico.