Chinese take 120m stake in ailing Saab

A Chinese car giant recognisable to practically nobody in the West has again stepped in to bailout a major, struggling brand in the form of Saab.

Just as Geely bought Ford's Volvo division last year and Shanghai Automotive acquired Rover, today, Hawtai Motor Group struck a deal to invest 150 million (£134.6 million) in the ailing Swedish carmaker.

Saab is currently owned by Spyker Cars of Holland, which has been forced to suspend production in recent weeks as it ran out of cash to pay its suppliers.

Hawtai will now pay 120 million for a 29.9% stake in Spyker plus a further 30 million as a loan that can convert into shares.

Spyker bought Saab from General Motors with the help of a European Investment Bank loan last year.