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The Saab 9-X concept, seen here at the 2010 Geneva motor show, could form the basis of the 9-1 entry-level model.

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Now we think we know how Saab got into so much financial dwang in the first place. The embattled Swedish automaker has just sent out a 700-word news release that reads as if it was written by a lawyer and issued by a government department.

Translated into English (which took quite a while) it says:

Saab has finalised a three-way deal with Pang Da and Zhejiang Youngman in which the two Chinese car companies will put in 245 million euros (about R2.4 billion) to prop up the ailing Saab and set up joint venture manufacturing and distribution operations in China for Saab and a "child" brand.

They've even allowed for the return of dodgy Russian investor Vladimir Antonov as a shareholder in Saab when and if his current legal embarrassments are sorted out.

However (and here's the big surprise) the plan also includes a new joint venture in Sweden, rather than in China, to build three all-new models, which Saab desperately needed but couldn't afford: the 9-1, 9-6X and 9-7.

Saab boss Victor Muller said: "This joint venture offers Saab the opportunity to develop models that were neither envisaged nor funded in our original business plan: for instance, we will now be able to develop a small entry-level Saab, a car that has long been at the top of our wish list."

The new set-up will be a 50:50 partnership between Saab and Youngman, with the Saab technical development department in Trollhättan responsible for the design, development and testing of the new models up to the start of production (and providing quality control support for the production lines) and Youngman putting up the money.

Youngman boss Pang Qingnian commented: "The Saab 9-6X and 9-7 will enhance the prestige of the brand in China and the US, while the entry level 9-1 will appeal to urban drivers around the world."

For those of you with a sado-masochistic streak and too much time on your hands, here's the original release:

Swedish Automobile, Saab Automobile, Pang Da And Youngman Convert Non-Binding MoU On Equity Investment Into Binding Agreement And Agree On Additional New Product Joint Venture Subject To Regulatory Approvals

Trollhättan, Sweden: Swedish Automobile N.V. (SWAN) and Saab Automobile AB (Saab Automobile) today announced the signing of final agreements with Pang Da Automobile Trade Co., Ltd. (Pang Da) and Zhejiang Youngman Lotus Automobile Co., Ltd. (Youngman), thereby converting the non-binding memorandum of understanding relating to the equity investment of Pang Da and Youngman announced on 13 June 2011 into binding agreements subject to regulatory and other third party approvals. Moreover, Saab Automobile announces a conditional agreement with Zhejiang Youngman Passenger Car Group Co., Ltd. (Youngman Passenger Car) on the formation of a Sweden-based joint venture company for the development of three new product Saab models (NPJV).

The non-binding MOU announced on 13 June 2011 between SWAN, Saab Automobile, Pang Da and Youngman in terms of which Pang Da and Youngman will make an equity investment in the total aggregate amount of EUR 245 million in SWAN have now been incorporated in binding agreements, while the parties continue working towards execution of binding agreements for a strategic alliance consisting of a tripartite distribution joint venture and a tripartite manufacturing joint venture for Saab-branded and child brand vehicles in China. The agreements are subject to approval from relevant authorities. The agreements allow for the return of Mr. Vladimir Antonov as a shareholder/financier of SWAN and Saab Automobile which the parties expect as soon as the parties at interest have cleared him.

The NPJV will be 50 percent owned by Saab Automobile and 50 percent by Youngman Passenger Car, and forms the foundation for an expansion of the Saab product portfolio with three models which until now did not form part of Saab Automobile's current and future product portfolio. As such the NPJV will focus on developing three completely new Saab vehicles: the Saab '9-1', Saab '9-6' and Saab '9-7'.

Within the development process of these three new vehicle lines, Saab Automobile will be responsible for controlling and managing the design, the development and testing process to the start of production and providing other necessary technical and quality control support. For this, Saab Automobile will source existing capabilities and expertise from its state-of-the-art technical development department in Trollhättan. Youngman Passenger Car will be responsible for providing the necessary financial investments in the joint venture.

The agreement on NPJV is also subject to approval from relevant authorities, which SWAN, Saab Automobile and Youngman Passenger Car hope to obtain timely. Victor Muller, CEO of SWAN and Saab Automobile said: "I am pleased to announce the signing of binding agreements (subject to obtaining regulatory approvals) with Pang Da and Youngman, as it underlines the confidence of all parties in a successful tripartite partnership. Establishing the New Product Joint Venture is a major step for both Saab Automobile and Youngman Passenger Car and marks the start of an exciting new partnership. This joint venture offers Saab Automobile the opportunity to develop models that were not envisaged nor funded in our original business plan: for instance, we will now be able to develop a small entry level Saab, a car that has long been on the top of our wish list."

Mr. Pang Qingnian, CEO of Youngman, added: "The agreement on the New Product Joint Venture brings together the best of both worlds, merging the industrial and financial strength of Youngman Passenger Car with the state-of-the-art technical expertise of Saab Automobile. The Saab '9-6X' and Saab '9-7' will be key to enhancing the prestige of the Saab brand to an even larger group of customers in China and the US, while the entry level Saab '9-1' will appeal to urban motorists around the globe."

Mr. Pang Qinghua, CEO of Pang Da, commented: "I am very happy to have signed binding agreements with our partners, which further feeds my confidence in a successful future for Saab Automobile. We were already impressed with Saab's current and planned product portfolio to date and with the addition of three new Saab models, the brand will be even better positioned to meet demand in markets around the world and China in particular."