Youngman May Not Be Lifeline For Saab, Analysts Say

Saab Automobile owner Spyker Cars NV’s agreement to sell a 29.9 percent stake in the struggling Swedish company to Zhejiang Youngman Lotus Automobile Co. may not help the carmaker turn itself around, analysts say.

Youngman may be too small a carmaker on the Chinese mainland to obtain government approvals to manufacture cars in the world’s largest auto market, analysts from IHS Automotive, Synovate Motoresearch and Autoforesight Shanghai Co. said. There is also a high likelihood China’s focus on automotive industry consolidation may scuttle the deal, they said.