RIP SAAB?

minimark · Oct 28, 2011

Have you driven a Chaab lately? Lol

Nathan · Oct 28, 2011

minimark said: ↑

Have you driven a Chaab lately? Lol
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You have no idea of how prophetic that was...

As of about 1PM Eastern today

Chinese firms Pang Da Automobile Trade Co. and Zhejiang Youngman Lotus Automobile Co. have agreed to buy Saab for 100 million euros ($142 million).

Saab owner, Swedish Automobile, said on Friday that it has entered into a memorandum of understanding to sell 100 percent of the shares of Saab to the Chinese companies.

Swedish Automobile said an important part of the deal "is the commitment of Pang Da and Youngman to provide long-term funding to Saab Automobile."

The memorandum of understanding is valid until Nov. 15, provided Saab stays in reorganization. Swedish Automobile said Saab's administrator, Guy Lofalk, has withdrawn his application to a Swedish court for Saab to exit reorganization.

Pang Da and Youngman will provide sufficient financing so that a court-backed reconstruction process under creditor protection can continue, a court document showed. The court had been due later on Friday to decide on Lofalk's application.

Swedish Automobile Chairman Victor Muller said the deal has "secured the future of Saab." He told Sweden's Sverige Radio that Saab would now be able to pay its creditors, restart production, launch new models and expand in China.

Muller said the Chinese companies are committed to investing 500 million euros in Saab. He told the radio station that he will stay on as Saab CEO until a new CEO is found and he will remain involved in Saab in the future.

Final agreement is subject to a definitive share purchase agreement between Swedish Automobile, Pang Da and Youngman, which will contain certain conditions including the approval of the relevant authorities, Swedish Automobile's shareholders and certain other parties, Swedish Automobile said a statement.

The 100 million euros will be paid in installments.

Saab came under court protection from creditors and bankruptcy claims in September, the second time in about two years, owing hundreds of millions of crowns to workers and suppliers.

An initial rescue plan was offered by Youngman and Pang Da, each of which had agreed to take a combined 53.9 percent stake in Swedish Automobile for a total of 245 million euros ($340 million).

In agreeing to sell Saab, Swedish Automobile has changed its position from last Sunday when it rejected an offer from the Chinese companies for an outright buyout of Saab.

Without fresh investment, Saab could lose its court protection from bankruptcy claims, paving the way for the automaker to be declared bankrupt.

Swedish Automobile said it will also hold talks with General Motors to convince it of the merits of a sale of Saab to Chinese investors.

GM has preference shares in Saab, supplies it with parts and is a creditor. Its permission for the planned sale of Saab to Pang Da and Youngman is needed, along with that of the Chinese authorities and the European Investment Bank, which has lent money to Saab.

Muller said he had so far only had a "brief dialogue" with GM about the planned sale, but hoped to convince them of the benefits of it.

"It is way too early to make a statement about whether this is going to be easy or not," he added.
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Steve · Nov 7, 2011

GM Won't Allow Saab's Sale To The Chinese (motorauthority.com)

By Kurt Ernst | November 7, 2011

Just last Friday we told you that GM might object to Saabâ€™s sale to Chinese companies Pang Da and Youngman, and now we have confirmation that the American auto giant will move to block the sale.

At issue are two things: the continuation of existing technology licenses (for GM components used in Saab vehicles) and the ongoing supply of Saab 9-4X crossovers that GM builds for Saab in Mexico.

GM, through a series of joint ventures and partnerships, is the largest automaker in China, and has expressed concerns about intellectual property currently licensed to Saab falling into the hands of its Chinese competitors.

The Detroit News quotes GM spokesman Jim Cain as saying that, â€œGeneral Motors is open to the continued supply of powertrains and other components to Saab under appropriate terms and conditions,â€ but that the continuation of technology licenses or the supply of further 9-4X vehicles, â€œwould not be in the best interests of GM shareholders.â€

GM is one of four key players who must approve the sale of Saab before it can proceed, with the others being the European Investment Bank, the Swedish government and the Chinese government. Saab will try to work out an arrangement with Pang Da and Youngman that will be agreeable to GM, but a happy ending to Saab's story isn't likely. If GM blocks the sale of Saab, bankruptcy, followed by liquidation, is the likely outcome for the Swedish automaker.

To follow our ongoing coverage of Saab's woes, click here.
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Redbeard · Nov 7, 2011

Ya know I've seen soap opera's with fewer ups and downs... Wow.

Steve · Dec 7, 2011

GM Rejects Second Saab Deal, Administrator Seeking End to Reorganization (motorauthority.com)

by Viknesh Vijayenthiran | December 7, 2011

Earlier this week it was revealed that a mystery Chinese bank had stepped forward and offered to purchase a 50 percent stake in Saab, potentially saving the automaker from certain bankruptcy if the deal is approved.

To be approved, the deal would have to prove favorable to a number of different stakeholders including the shareholders of Saabâ€™s parent company, Swedish Automobile, the Swedish and Chinese governments, and of course Saabâ€™s former parent, General Motors, which still owns a portion of preferential shares.

Itâ€™s been reported today by Reuters that GM has rejected the deal.

"We have reviewed Saab's proposed changes regarding the sale of the company," GM spokesman James Cain said in a statement. "Nothing in the proposal changes GM's position. We are unable to support the transaction."

Like the previous deal to save Saab, which GM also rejected, the new one could still potentially hurt GMâ€™s interests in China and other key markets, which the American auto giant cites as its main reason for blocking it.

GM currently licenses intellectual property to Saab, which is used in virtually every model in the Swedish automakerâ€™s lineup. Without it, analysts predict Saab would be unable to operate in its current form.

In response, Swedish Automobile has announced that it has been informed that the court-appointed administrator of Saabâ€™s reorganization, Guy Lofalk, will apply for a termination of the process.

Saab and its creditors, mostly suppliers, have approximately five to six days to submit their view to Swedish courts before a final decision about termination of the reorganization is made. The management of Saab is still considering future steps and remains in negotiations with Chinese firm Youngman about the necessary funding to pay wages and maintain a continuation of the reorganization process.

Stay tuned for an update but in the meantime click here to follow our ongoing coverage of Saab's woes.
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Redbeard · Dec 7, 2011

:deadhorse:

Just let it die. Some investor will come along buy-up the naming rights leave the "Epsilon" crap to GM and start it anew.

Nathan · Dec 13, 2011

Saab gets 11th hour payment from China's Youngman

Just let it die!!

STOCKHOLM (Reuters) - Saab has received a first payment from China's Zhejiang Youngman Lotus Automobile as it struggles to stay in business and faces a crucial court hearing on its future this week.

"I can confirm a first payment from Youngman. Funding has come into Saab accounts," Eric Geers, Saab spokesman, said today, declining to detail the amount.

Swedish business daily Dagens Industri reported that Youngman, which wants to get a stake in Saab, has given the Swedish carmaker $5 million to cover immediate tax expenses.

It said Youngman will pay a further 20 million euros ($26.43 million) to Saab on Wednesday to cover unpaid salaries and 10 million euros more before the end of December.

Geers could not say whether more money was on the way but said discussions with Youngman had continued and that progress was being made.

"Now, we are trying to work hard to pay salaries and to secure funding for salaries and keep the company in reorganization," he said.

A court is due to decide on Friday whether to keep Saab in a scheme which grants it protection from creditors while it secures itself a stable future. The administrator overseeing the scheme for the court has applied to have it ended.

Saab has been teetering on the edge of collapse since early this year when a cash crunch forced it to halt production.

Last week, the company's administrator called on the court to end a period of creditor protection because Saab, owned by Dutch-listed Swedish Automobile, was out of money.

Decision day

Vanersborg District Court in west Sweden had given Saab and its creditors until Dec. 15 to submit their views on the administrator's request the period of creditor protection be terminated. A decision will come on Dec. 16.

Ending protection from creditors would open the way for creditors to file for Saab's bankruptcy. The court already has one claim, which is under suspension.

Swedish Automobile has forged a series of deals in a bid to save the carmaker, but former owner General Motors Co., which still owns licenses for Saab technology, vetoed the latest agreement with Chinese investors.

Saab has not produced any cars for months as its main factory in Trollhattan, Sweden, has been shut due to unpaid bills. It also failed to pay salaries due on Nov. 25.
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Source - Automotive News

Metalman · Dec 13, 2011

Why are the Chinese forking out money to Saab if GM won't budge on letting the Chinese buy Saab? Strange.....

minimark · Dec 13, 2011

There is something there they want.

Always like it when they file for creditor protection whilst they secure themselves a sound future.... Pardon me but what about their creditors sound futures? What about their employees that might not be getting paid, how many of these companies are in trouble because they can't get paid for their products and services whilst Saab, the Chinese and the courts dick around over the standing dead?

The way I see it; Saab has a better chance of dieing and being resurrected than of being resuscitated....

Nathan · Dec 19, 2011

Looks like they finally got the message that Saab is dead...

Saab Automobile AB filed for bankruptcy with the district court in Vaenersborg, Sweden, this morning, according to a release from its Dutch owner, Swedish Automobile NV.

General Motors Co.'s, announcement this weekend that it could not support the latest investment and loan proposals from China's Zhejiang Youngman Lotus Automobile to keep Saab alive was cited as the key reason for the decision.

"After having received the recent position of GM on the contemplated transaction with Saab Automobile, Youngman informed Saab Automobile that the funding to continue and complete the reorganization of Saab Automobile could not be concluded," Swedish Automobile said in the release.

"The Board of Saab Automobile subsequently decided that the company without further funding will be insolvent and that filing bankruptcy is in the best interests of its creditors."

GM said that the last proposals made by Saab to close the deal were not "meaningfully different from what was originally proposed to General Motors and rejected," GM spokesman Jim Cain said in a statement Saturday

"Each proposal results either directly or indirectly in the transfer of control and/or ownership of the company in a manner that would be detrimental to GM and its shareholders," Cain said. "As such, GM cannot support any of these proposed alternatives."

In the release, Swedish Automotive said that it "does not expect to realize any value from its shares in Saab Automobile and will write off its interest in Saab Automobile completely."

Swedish Automobile said that Saab Automobile Tools AB and Saab Powertrain AB also have filed for bankruptcy.
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Nathan · Dec 30, 2011

But Wait...Some of Saab to go to India?

As reported in Automotive News and Bloomberg today...

STOCKHOLM -- Mahindra & Mahindra Ltd., India's biggest sport-utility vehicle manufacturer, is interested in buying at least parts of bankrupt Swedish carmaker Saab Automobile, two people familiar with the situation said.

Mahindra, based in Mumbai, is in the process of trying to set up meetings with the two court-appointed administrators who are overseeing Saab's bankruptcy to possibly buy parts of the carmaker or the whole company, said the people, who declined to be identified because the plans are private.

Mahindra has yet to hold discussions with the administrators, the people said.

Roma Balwani, a Mahindra spokeswoman, declined to comment.

Mahindra Chief Financial Officer Bharat Doshi wrote in a text message that he was in a meeting and wasn't available to talk.

Saab filed for bankruptcy Dec. 19 after running out of cash.

General Motors Co. sold the Trollhaettan, Sweden-based company in February 2010 to Dutch sports-car maker Spyker Cars NV, which later changed its name to Swedish Automobile NV.

Saab first halted production in March after it was unable to pay suppliers. Chief Executive Officer Victor Muller said this month that several parties had expressed interest and that Saab still has a chance to emerge from bankruptcy.

Turkish suitor

At least one Turkish company is also interested in investing in Saab, one of the people said.

The Turkish government wants the country to have a car brand of its own, and is trying to help a manufacturer take over at least parts of Saab, the person said.

Hans Bergqvist and Anne-Marie Pouteaux, the attorneys handling the bankruptcy, didn't immediately return messages seeking comment.

Mahindra completed the purchase of a 70 percent stake in Ssangyong Motor Co. earlier this year for about $368 million as it sought to benefit from the Pyeongtaek, South Korea-based company's technology and international sales network.

Ssangyong, previously controlled by SAIC Motor Corp., sought bankruptcy protection in February 2009 after losses caused by plunging SUV sales.

The automaker said in March it plans to spend more than 240 billion won ($208 million) on product development and brand building this year after Mahindra took control.

Mahindra investments

Mahindra, the maker of Scorpio and Xylo vehicles, also bought out Renault SA's stake in an Indian sedan-making venture and acquired control of Bangalore-based Reva Electric Car Co. last year to broaden its automobile lineup.

Muller, before declaring Saab bankrupt, had been pursuing a 600 million-euro loan from Zhejiang Youngman Lotus Automobile and a Chinese bank.

The move followed a failed attempt earlier this year to sell a stake to a partnership of Jinhua, China-based Youngman and auto dealer Pang Da Automobile Trade Co.

Saab has about 3,600 employees, 3,400 of whom are at the main plant and offices in Trollhaettan.

Sweden's government will pay their salaries for a limited time under the country's bankruptcy law.

The company traces its roots back to the establishment of aircraft manufacturer Svenska Aeroplan AB, which was set up in 1937 and began building cars 10 years later.

The auto business was split off from the aerospace operations, now called Saab AB, in the 1990s, with GM gaining a 50 percent stake in 1990 and full control in 2000.
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Steve · Jan 6, 2012

Saab Dealer Slashes Prices, Launches Ad Blitz to Dump Remaining Cars (motorauthority.com)

by Antony Ingram | January 6, 2012

Saab dealers must be feeling like the dependent partner in an on-off relationship right now.

For years they've had the on-again off-again joy and tragedy each time the ailing carmaker has closed, and then been bailed out. With Saab finally gone (...or is it?...), dealerships around the world are burning photographs and throwing out their old CDs.

Well, slashing prices, offering buyers extra peace of mind and launching an advertising blitz, anyway. That's the tactic taken by Ohio dealer Saab of North Olmsted, according to Automotive News.

Last week, the dealer sold 55 new Saabs, from its stock of 122 cars before Christmas.

It hasn't been easy - dealer president Bernie Moreno has had to chop sticker prices from 25 to 45 percent, and offer a service contract that lasts 60,000 miles, making up for the now defunct Saab warranty.

On December 26, the dealership also spent $100,000 on TV and print advertising. This not only let customers know of the heavy discounts, but reassured them that the sale was genuine. "We wanted to be absolutely transparent as possible and not make it a hokey sale. It really is exactly what it is advertised as, which is a liquidation," explained Moreno.

Strangely, only half of the customers opted to buy the $1,995 service contract, despite the cars being sold "as is", with no warranty. Moreno says those customers will be contacted soon, just to confirm they really want to drive a car from an extinct manufacturer, with no warranty.

12 of the remaining 67 cars will be used as loaner vehicles, ready for customers who return for servicing. Saab may be dead, but Saab of North Olmsted is keen to provide the same levels of service it would to any other buyer.

The on-off relationship may be over, but Saab's ex-dealers can now embark on their new lives. Maybe they'll find true happiness after all...
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Steve · Jan 17, 2012

Want to buy a piece of history?

More Than 100 Cars From Saab Museum Listed In Bankruptcy Sale (MotorAuthority.com)

by Viknesh Vijayenthiran | January 17, 2012

In whatâ€™s sure to be both fulfilling and sad news for Saab fans all around the world, a Swedish law firm involved in the liquidation of Saab following last monthâ€™s bankruptcy announcement has posted for sale a list of more than 100 classic models belonging to the Saab Heritage Museum in Trollhattan, Sweden.

Interested buyers are required to send in written bids on the collection to the law firm Delphi, either as a whole or individually, via mail or fax by this Friday, January 20.

As the guys from Bring A Trailer point out, all the details are written in Swedish though there are plenty of images to help you identify some of the models up for sale.

Itâ€™s very rare for collection of cars such as this to come up for sale as usually many of the cars held in museum collections are already owned by private individuals. Saab fans now have the opportunity to own some of the rarest Saabs on the planet including the very first, hand-built 1946 Ursaab Prototype with chassis number Saab 92001. This prototype, which was first shown to the public in 1947, was used in road testing and is still in its original condition having never been restored.

Also up for grabs is the stunning 2006 Saab Aero-X Concept, 1985 Saab EV-1 experimental sports car, 1981 James Bond Saab 900 Turbo, a handful of Sonnets dating back to the 1950s, and even a still-born Subaru Tribeca-based 9-6X prototype.

Note, Saabâ€™s latest concept, the Jason Castriotta-styled PhoeniX, isnâ€™t part of the collection.

Hopefully, whoever ends up buying some or all of the cars will donate them to a museum where the public can continue to enjoy them.

Click here to view the full list in PDF form.
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Metalman · Jan 17, 2012

So Sad.....:sad:

Crashton · Jan 17, 2012

Oh wow what a terrible thing. Hate to see that collection broken up & cast to the wind. :frown2:

Metalman · Jan 17, 2012

Autocar UK reports 100 Saabs will be sent to the crusher....

Saabs on way to crusher - Autocar.co.uk

minimark · Jan 17, 2012

Very sad, inevitable but still very sad indeed....

Gil-galad · Jan 17, 2012

Metalman said: ↑

Autocar UK reports 100 Saabs will be sent to the crusher....

Saabs on way to crusher - Autocar.co.uk
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:frown2: :cryin:

Steve · Jan 18, 2012

Saab's Swan Dive Puts Spyker At Risk (MotorAuthority.com)

by Nelson Ireson | January 18, 2012

In a release today, Swedish Automobile N.V. ("Swan") announced the possible sale of Spyker Cars, the Dutch supercar brand that Victor Muller parlayed into a purchase of Saab in 2010 and Swan's sole remaining subsidiary. But a sale might not be possible, and Spyker could go down with the ship.

If Swan decides to hold on to Spyker, securing financing to keep the company running would be the only way to save it. With pressure from Saab's bankruptcy administrators to liquidate as much as possible--including a collection of over 100 historic production and concept cars from the brand's Trollhattan museum--holding onto a struggling Spyker may prove impossible.

Previous plans to sell Spyker to CPP Global Holdings and, later, North Street Capital haven't yet produced any final transaction, and may have completely fallen apart, though the company hasn't issued any statements on the deals since last fall.

While the world may not miss Spyker much, it would be yet another tragic tale woven into the failure of Saab in its GM and post-GM eras. Some would argue Saab never really had a lot going for it, despite penning some truly unique, and occasionally iconic, designs and pairing them with sometimes-innovative mechanical features.

Along with the Spyker announcement, Swan revealed four of its supervisory and management board members, Hans Hugenholtz, Maurizio La Noce, Alex Roepers, and Rob Schuijt have resigned, casting deeper shadows over the company's future.
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Redbeard · Jan 19, 2012

Not to be an arse but I'm not too heart-broken over Spyker. Aside from the cool shifters they didn't impress or inspire me.

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