Chinaâ€™s National Development and Reform Commission (NDRC), the countryâ€™s top economic planning body, held a small meeting on May 18 with Pangda Group, just two days after Pangdaâ€™s inked a deal with Saab. The key attendees of the meeting were companies close to the Saab deal, but one person who was included in the deal, but did not wish to state his name was quoted by the press as saying:”The meeting was held yesterday, I can’t tell you who was involved but I am certain you can guess. The main goal of the meeting was to point out that Pangda should not be overly competitive behind the backs of other companies, they need to communicate more. ”
The NDRCâ€™s are hoping that the Chinese car industry will see further development through buyouts of foreign technology, at the same they are hoping that this plan will avoid economic losses by pushing Chinese companies to buy sinking ships.
The government started to intervene only half a month after Saabâ€™s deal with Hawtai was exposed, one of the major reasons speculated in the media seems to be the failure of the Saab-Hawtai deal which did embarrass the Chinese leadership.
An unspecified international consultant has also been commenting on the Saab issue, which could see Pangda signing up with another company to produce Saab’s in China “China doesn’t allow one car company to partner with two at the same time. Previously we saw what happened when MG-Rover was talking with two companies, later SAIC and NAC were forced to merge. Now it appears that a car dealership group are planning to enter the international mergers and acquisitions arena, the Chinese government are likely to get involved in someway”
Saab broke up with Hawtai in only nine days, and then tied up with Pangda. Beijing Auto is also nervous as it acquired Saabâ€™s products and technologies two years ago. Great Wall and Youngman Automobile are both rumored in talks with Saab. Each of these companies can be the key role of the Saab mess suddenly.