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.
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.