Chinese step in to rescue Saab

Swedish car maker Saab has agreed a rescue package from two Chinese car companies, handing over a majority stake in return for a cash injection to avert a potential collapse.

Spyker, Saab's Dutch owner, has signed a deal with Zhejiang Youngman Lotus to take a 29.9 per cent stake in the company and Chinese car distributor Pangda to take a 24 per cent slice for a combined €245 million (216m).

Spyker chief executive Victor Muller said the deal would secure Saab's mid- and long-term financing but that Swedish and Chinese government approval could take two to three months.