China's Youngman backs out from Saab bid

Chinese car manufacturer Zhejiang Youngman Lotus Automobile Co has backed out from takeover talks with administrators of bankrupt Saab Automobile AB, Swedish newspaper The Daily Industry (DI) has reported, citing a source.

The paper said the administrators were not sure that the Chinese government would approve the deal, and that General Motors (GM) would not part with its technology to any Chinese company outside of its close Chinese joint venture partner.

Youngman, based in Jinhua in the Zhejiang province, produces coaches and trucks in collaboration with Germany's MAN.

It also sells passenger cars in China, some models of which are engineered with the help of the UK-based Lotus Engineering.

But the administrators have begun talks with a newly formed company called National Electric Vehicle Sweden, which aims to produce over 100,000 hybrid cars within a year, said DI.

According to Swedish media, Mahindra & Mahindra (M&M), India's biggest sport-utility vehicle manufacturer, is one of the companies interested in buying at least a part of Saab and was in the process of setting up meetings with the court-appointed administrators.