The Saab brand has been through an arduous few years, with threats of being eliminated by former parent GM until being saved by Dutch supercar maker Spyker. With financial debts mounting and no immediate prospects in sight, the future of Saab has been uncertain at best and downright gloomy at worst. In this key juncture, news that Shandong-based Hawtai Automobile has agreed to invest in and cooperate with the Swedish manufacturer has taken the industry by storm. What goal is Hawtai looking to reach, and what are the prospects for the proposed partnership? Gasgoo.com (Chinese) has brought a panel of experts to take a look at the question.

Cui Dongshu, Assistant Secretary of the China Passenger Car Association


"Saab accepting Hatwai's offer of cooperation is truly something that I wasn't expecting. However, I'm not at all optimistic about the proposed alliance between both parties. Saab has never managed a breakthrough in the strong European market, [which] makes it clear that the problem is within their company. I believe it is key for Saab presently to change its entire business system and continue to bring in new investment. Only in this way do they have a chance at recovering. Whether or not they are able to successfully change is crucial to Saab's future existence."

"In addition, BAIC has already bought the intellectual rights to the three platforms, as well as two series of turbo engine and gearbox technology, used in Saab's 9-5 and 9-3 models in order to develop its own brand vehicles. I believe that BAIC [at the time] passing up the chance to further cooperate with them was not a question of money, but rather that BAIC was considering the ability of Saab to continue developing. If Saab is unable to pull through its financial difficulties, it will end up wasting the whole organization's [BAIC] resources. Likewise, Hawtai is at risk [of being affected in this way.] I hope that, outside of its completed investment, Hawtai will not be burdened by Saab. Of course, we will be relatively tolerant to a private enterprise like Hawtai, as, after all, they possess the vigor to create an own brand and the courage to develop."

Zhong Shi, independent industry analyst


"It goes without saying that Saab's alliance with Hawtai is beyond expectation. The 'strategic cooperation partnership' discussed between both parties was extremely vague and did not clearly explain any specific cooperation. This cooperation, from Hawtai's perspective of pure profit gain, will hinge on how strongly they are able to control Saab. Hawtai has always aimed at shifting its brand to the mid to luxury class segment, but has lacked the technological foundation. If Hawtai is able to, via this cooperation, gain Saab's expertise in chassis, engines and so-on, it will be of great use to their brand. After all, Saab is the forefather of turbo engine technology."

"As for Saab, being able to gaining financial investment from a partner who is able to help them face immediate difficulties is of top priority. Domestic [Chinese] production, on the other hand, is key to their development, as there is not much future to be had by relying exclusively on imports."

Zeng Zhiling, Director of J.D. Power and Associates Asian branch


"Investing 150 million euros ($222.7m) into Saab carries a lot of risk for Hawtai. Saab's losses this year already totaled over 70 million euros ($103.9m) this quarter; if they're unable to turn things around, 150 million euros will only cover Saab's losses for two quarters. At the same time, when Spyker bought 100 percent of the rights to Saab from GM, they only spent $400 million, while Hawtai has already spent [over $220m] for only a 29.9 percent share. In other words, Saab's price inflated thirty percent, something [which makes for] an incredibly unreseasonable business deal."

"Saab's old partner in China, Shanghai GM, is one of the industry's biggest sellers, was entirely unable to get Saab on the right track. Therefore, whether Hawtai, whose management team isn't entirely stable, has the ability to help turn around Saab is very questionable.