China's Hawtai invests in Spyker to prevent Saab's demise

James Raia

Hawtai Motor Group of China seeks to invest about $220 million in exchange for stock to the Dutch carmaker Spyker in order for its Swedish brand Saab to continue plans for its 9-3 to be made in China beginning in 2013.

A privately-owned Chinese carmaker, Hawtai makes SUV and passenger cars. Founded in 2005, it’s owned by Zhang Xiugen, among the country’s wealthiest entrepreneurs.

Spyker took over Saab about a year ago from General Motors, although GM retains stock. Hawtai will now own about 30 percent of Spyker.China's Hawtai invests in Spyker to prevent Saab's demise 1

Saab’s production has ceased in recent weeks after suppliers stopped delivery of parts because of unpaid bills.

The Hawtai deal is the second time a Chinese company has invested in a Swedish car maker. Zhejiang Geely, parent of Hong Kong-listed Geely Automobile Holdings, bought Volvo from Ford Motor last year for $1.3 billion in cash and a $200 million note issued to Ford.

The Hawtai-Spyker deal awaits Chinese government approval.

Article Last Updated: May 3, 2011.

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