Every time we think Saab's gone dark, a new bid from a Chinese carmarker pops up and sheds a glimmer of light onto the scene.
Today's news comes courtesy of China's Youngman who has just offered $470 million (3.2 billion kronor) for the bankrupt Swedish brand. According to The Local -- and English-language Swedish newspaper -- Youngman has also promised to invest an additional 10 billion kroner to restart production at the Trollhattan factory. The 3.2b kroner number is reportedly the lowest number that Saabs real estate owners and creditors will accept for the brand.
Saab currently has 13 billion kroner in debt and 3.6 billion kroner in assets.
Categories: Auto Industry,Saab
Finally, a bit of good news out of Saab; the Saab Museum in Trollhattan is no longer for sale.
The administrator of Saab's bankruptcy had put the museum and its collection of some 120 cars -- including the first Saab ever, the Ur-Saab -- up for sale. The thought process was that the cars would be worth more and thus return more money to Saab's creditors if the collection was broken up.
The City of Trollhattan, SAAB AB and the Wallenberg Foundation weren't ready to let that happen. The trio has reportedly paid 2.6 million GBP to secure the collection.
(AutoCar)
Categories: Classic Cars,Miscellaneous,Saab
The newest chapter of the Never Ending Saab Story reveals a new, surprise twist in the plot. At the end of the last chapter we had Chinese firm Youngman maintaining interest that despite the bankruptcy and the crushed cars and the fact that GM won't allow any Chinese firm to own/have access to any of their intellectual property. If this is Saab's only option, they're sunk.
Now, though, we've got word that a Turkish equity fund, Brightwell Holdings, is going to make a run at the Swedish brand. "We will make a bid very shortly, there's no question," said Zamier Ahmed, board member with Brightwell. The Istanbul-based investment group is big on investments into transportation and energy.
Let's see how GM feels about the Turks.
(Automotive News)
Categories: Auto Industry,Saab
Back in December a Swedish court declared Saab bankrupt after a deal couldn't be reached with a number of Chinese auto makers. The stumbling block was General Motors. Simply put, they didn't want their intellectual property in the hands of anyone who could compete with them in China.
Now, a "source with knowledge of the process" has confirmed to Automotive News that Youngman's still in the game and will be throwing up another bid for Saab next week. The deal is allegedly worth "several billion Swedish crowns" with 1 krona = 0.14 USD.
No information was provided for how this deal would be different than the other ones that were shot down by GM, but a lawyer representing Youngman said that they would not be developing products controlled by GM. The PhoeniX platform (pictured above) uses very little GM technology, but is still very far away from being a developed, road-ready car. Ie: It needs a lot more time and money.
Last week Saab crushed a number of vehicles either on or fresh off of the production line and put the Saab museum up for sale.
(Automotive News)
Categories: Auto Industry,Saab
By now you may have heard about Saab's bankruptcy and suspension of warranties. But for recent Saab owners, there are still a number of unanswered questions. What will happen to parts? What warranties are no longer valid? Where does one go for service?
And if you had your heart set on buying a Saab 9-5 for half price, you may want to wait a bit. Though the value of Saabs will fall at some point, for now, dealers are taking a wait and see approach. In fact, now may be the worst time, manufacturer rebates that offered cash on the hood earlier this week have already been revoked. Waiting this one out seems like a good idea.
In the meantime, we’ve created a "Saab Survivor Guide," to bring you up to speed on recent events and help answer any lingering questions.
-Ron Montoya, Consumer Advice Associate
Categories: Auto Industry,Saab
Today GM announced that they will cover any remaining warranty on Saab vehicles sold while the Swedish company was a member of the GM Family. That means pre-2009 models here in the U.S. and some 2010s in Canada.
But this is not a case of GM being altruistic and stepping in to help a struggling carmaker, GM has to honor the warranties they gave out during that time as part of the companies bankruptcy proceedings.
Continue reading...
Categories: Auto Industry,General Motors,Saab
When GM declared bankruptcy the US Government set up a special fund to secure warranty coverage for new vehicles sold. The lack of a warranty, they argued, would discourage consumer spending so they set up a $360 million fund under the name GM Warranty LLC.
When Saab declared bankruptcy yesterday one of the biggest questions was "what will happen to the warranties?" With no company rushing in to save them and no particular interest from the US to back a niche carmaker, the outlook wasn't so good.
And now it's confirmed: Saab has officially suspended warranty coverage on all new vehicles sold in North America. Dealers have been instructed to remove the warranty card from all new vehicles on the lot as new Saabs are now sold "as is."
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Categories: Saab
Victor Muller is the chairman and CEO of Saab. Yesterday, he personally filed the bankruptcy papers for Saab Automobile (and two subsidiaries). He calls it the blackest day in his career.
After the filing, Muller took to a press room to give a statement and answer reporter's questions. It's a more in-depth and candid look at the business side of things than we normally get to see. Muller talks GM, Youngman, why Sweden's bankruptcy is better than the US version and more. It's 30 minutes of a guy talking about business, but it's a worthwhile watch for anyone interested in learning more about how this business works. And what happens when it doesn't.
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Categories: Auto Industry,Saab
"Swedish Automobile N.V. (Swan) announces that Saab Automobile AB (Saab Automobile), Saab Automobile Tools AB and Saab Powertrain AB filed for bankruptcy with the District Court in Vanersborg, Sweden this morning."
After countless failed bids to save the company, in the end, there was no plan B and Saab has finally filed for bankruptcy. GM was the final and constant hurdle in the deal as they simply refused to allow their intellectual property to be transferred to a Chinese competitor.
There doesn't appear to be any roadblock in the bankruptcy plan, though "The Board of Saab Automobile subsequently decided that the company without further funding will be insolvent and that the filing bankruptcy is in the best interests of its creditors...Swan does not expect to realize any value from its shares in Saab Automobile and will write off its interest in Saab Automobile completely."
Categories: Auto Industry,Saab
Guy Lofalk does not want to be the Administrator for Saab's bankruptcy protection anymore and who can blame him? He's going to be responsible, legally, for killing one of Sweden's biggest names.
Both Saab and Guy Lofalk petitioned the court to dismiss him as the administrator this week affter Lofalk again called for the termination of Saab's creditor protection. Unfortunately for Lofalk, the courts did not accept his resignation nor Saab's request insisting that it is simply too late to allow a new administrator. "With regard to the short time remaining until the matter will be tested ... the district court assesses that there are insufficient grounds to immediately dismiss Lofalk."
On Monday the court will decide whether or not the initial payment and promise of Youngman can keep them going and if it is likely that further payments will be A) accepted by GM and B) enough to save Saab.
(Reuters)
Categories: Auto Industry,Saab
Annnnnnd, the saga continues.
Swedish business paper Dagens Industri is reporting that China's Zhejiang Youngman Lotus Automobile has given Saab $5 million to cover immediate tax expenses and will follow up with $26.4 million on Wednesday to cover unpaid salaries. Saab spokesman Eric Geers confirmed part of this, "I can confirm a first payment from Youngman. Funding has come into Saab accounts. Now, we are trying to work hard to pay salaries and to secure funding for salaries and keep the company in reorganization." Geers did not confirm the follow-up payments.
The courts are set to decide on Friday if they should keep Saab in bankruptcy protection or if they're beyond hope at this point. If the courts reject Saab's plan, creditors will file for Saab's bankruptcy and that will be all she wrote.
Getting cash is key right now for Saab, but how will Saab convince the courts that GM will agree to any cash-for-control scenario if the Chinese are involved?
(Automotive News)
Categories: Auto Industry,Saab
Shocker, now that GM has stepped in to put a halt to the Chinese takeover of Saab, the Administrator of Saab's voluntary reorganization, Guy Lofalk, has announced that he will file for the termination of said reorganization.
Saab has "approximately five to six days" to submit their position to the courts before a final decision. That gives Saab and Youngman six days to figure out how to get this done without GM getting all upset.
In other words, Saab's got about six days left.
Categories: Auto Industry,Saab
Just when Saab thought it had things figured out with its Chinese investors, GM comes crashing the party again.
"We have reviewed Saab's proposed changes regarding the sale of the company. Nothing in the proposal changes GM's position. We are unable to support the transaction," said GM's James Cain.
The contracts between Saab and GM are essential for the current survival of Saab and without these technology licenses, Saab is likely a far less valuable company. GM has stated previously that it won't allow any Saab deal that hurts its current standing in the Chinese market.
Continue reading...
Categories: Auto Industry,General Motors,Saab
This Saab thing just won't stop. We were so close back on Oct. 28 when Saab agreed to the purchase offer by Youngman and Pang Da. Trouble is, nobody bothered to ask GM.
What's GM got to do with it? Well, they have licensing agreements with Saab and provide Saab with the 9-4X.
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Categories: General Motors,Saab
Earlier today -- which you'll remember as the day set for a Swedish judge to determine the fate of Saab and its voluntary reorganization and creditor protection -- Saab's parent company Swedish Automobile N.V. (Swan) entered into a memorandum of understanding with Youngman and Pang Da for the Chinese firms to purchase 100% of the shares of Saab Automoile and Saab Great Britain Ltd for $141 million.
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Categories: Auto Industry,Saab
At the end of last week we finally saw some progress in the continuing Saab Saga. Unfortunately, the progress was in the wrong direction for the slowly sinking Swedish auto maker. They got a quick shot of cash from a US investment firm which they backed up with unnamed collateral and then told the Chinese firms Youngman and Pang Da that they need to see the money sooner rather than later.
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Categories: Auto Industry,Saab
Yesterday's news that North Street Capital was buying $10m in Saab shares and loaning them an additional $60m was surprising, but the bigger question was what exactly did Saab put up as collateral for a whole lot of money in a very short span of time. Considering today's news, we may find out sooner than later.
Saab, sick of dealing with the endless promises and red tape from China's Youngman and Pang Da, has essentially told the Chinese firms that if they like it they shoulda put a ring on it.
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Categories: Auto Industry,Saab
In an unexpected twist to a story full of completely expected twits, U.S. private equity firm North Street Capital has stepped up with $70 million to help Saab.
If North Street Capital sounds familiar, it's because they've worked with Saab before. In late September, North Street Capital purchased Spyker from Swedish Automobile (Saab's parent) for $43 million. North Street Capital is headed by Alex Mascioli, a noted car enthusiast.
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Categories: Auto Industry,Saab
The on-again off-again relationship between Saab, some Chinese car makers, the Chinese government and the media took another step forward (?) today with the announcement that Youngman had provided Saab with an undisclosed sum of money. Saab expects full payment ($70 million) by October 22.
A Swedish newspaper is reporting that the undisclosed sum here is about $15 million.
This news comes just a day after Pang Da, the other piece of this puzzle, said that the deal they inked with Saab was no longer valid since the brand was granted bankruptcy protection. They were, apparently, willing to renegotiate the terms based on the current situation. The deal, made in June, was for Youngman to take 29.9 percent of Saab and Pang Da to buy 24 percent.
Just what Saab needs? Or is this just good money after bad?
(Automotive News)
Categories: Auto Industry,Saab
Yesterday news broke that the Chinese government might force Pang Da out of the deal to save Saab. Today, Saab has responded to those rumors...Kind of.
Trollhattan, Sweden: Swedish Automobile N.V. (Swan) and Pang Da Automobile Trade Co., Ltd (Pang Da) have taken notice of media reports questioning the validity of the partnership agreements between Swan, Saab Automobile AB (Saab Automobile) and Pang Da after Saab Automobile entered into voluntary reorganization. Swan, Saab Automobile and Pang Da underline that these reports are based on a misunderstanding.
Oh, good, it was all a misunderstanding. Of what, nobody knows, but it was a misunderstanding and no person in Swedish government should revoke their bailout protection because of such misunderstandings.
Categories: Auto Industry,Saab
