Reply #27: europe: Saab back in hot seat after China deal terminated

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http://hosted.ap.org/dynamic/stories/E/EU_SWEDEN_SAAB?SITE=AP&SECTION=HOME&TEMPLATE=DEFAULT&CTIME=2011-05-12-07-11-55

STOCKHOLM (AP) -- Struggling car maker Saab Automobile faced renewed uncertainty Thursday as the financing deal with China's Hawtai Motor Group fell apart, raising fresh concerns about the company's future.

Spyker Cars NV, which bought Saab from General Motors Corp. in 2010, said it was "forced to terminate" the $223 million (euro150 million) agreement with Hawtai since the Chinese company was not able to obtain all the necessary consents, including approvals from different shareholders.

The money from Hawtai was crucial to Spyker's plans to rescue cash-strapped Saab, which was forced to stop production at its plant in Trollhattan, Sweden, on April 6.

Saab spokeswoman Gunilla Gustavs said the company is in talks with other potential Chinese partners, but declined to give any names.