Saab saviour deal collapses

..failing to secure the Beijing government's consent to go ahead.

"Since it became clear that Hawtai was not able to obtain all the necessary consents, the parties were forced to terminate the agreement with Saab Automobile and Spyker with immediate effect,'" Saab's owner, Zeewolde, Netherlands-based Spyker Cars NV said in a statement.

"The parties will continue their discussions about a possible cooperation, however now on a non-exclusive basis." Victor Muller, chief executive officer of Spyker, said.

Saab's regional director for Asia-Pacific, Stephen Nicholls, told Carsguide today: "Three or four people in the world who know what's going on. Victor Muller is one and he's in Beijing."

"My understanding is that Hawtai's exclusivity deal expired on May 13 today. As a result of that expiring and them not being able to complete the deal we're still in discussion with them but no longer exclusively so.''

The agreement was to allow Hawtai produce Saabs for the Chinese market, starting next eyar with the new 9-3. The deal also required the approval of the European Investment Bank and the Swedish National Debt Office, which is guaranteeing a loan to Saab from the EIB.

"It's been reported that Great Wall are interested but Hawtai is still in there," Nicolls said.

"We've no idea what the hold ups were but deals in China of this kind take some time. We have very few hard facts.

"Our experience is that we only open our mouths to make fools of ourselves." He added a statement from Muller was likely in the coming days.

Saab is still in talks with the European Investment Bank to complete a $41 million loan drawdown. The copmpany is also reportedly waiting on approval to sell some of its property, since the land is currently used as collateral with the Swedish National Debt Office. Having secured a $50 million Swedish government to stay afloat is still looking to strike a deal with Russian banker and former major shareholder in Spyker, Vladimir Antonov.