As much as the universe would seemingly like to see Saab wiped off the face of the Earth, this stubborn automaker from Sweden refuses to go quietly into the night. Despite reporting two days ago that Saab was on the verge of bankruptcy, it has been pulled back from the edge (again) today by Chinese automaker Zhejiang Youngman Lotus Automobile Co.

Saab confirmed in a statement this morning that Youngman has issued the first payment, reportedly around $15 million, of a $97 million bridge loan that will help keep the Swedish automaker solvent during its reorganization while it waits for both Chinese and Swedish authorities to approve a much larger investment of about 245 million Euro by Youngman and fellow Chinese carmaker Pang Da. Saab expects it will have the full $97 million loan in hand by October 22.

Saab sounds confident that both governments will approve the investment, though Chinese authorities have sunk deals like this before by dragging their feet or refusing to grant approval. A similar investment deal by China's Hawtai Motor Group was abandoned earlier this year for a number of reasons, chief among them the government's inability to approve the transaction in time.
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Saab Automobile Update

Trollhättan, Sweden: Management of Swedish Automobile N.V. (Swan) and Saab Automobile AB (Saab Automobile) confirm that the reorganization is progressing and that a first payment by Youngman under the bridge loan funding commitment as announced on September 12 was received by Saab Automobile.

Further payments under the amended and final bridge loan agreements signed between Youngman and Saab Automobile are expected to be made during this week and by October 22 of this year. It is the intention to repay the bridge loan with the proceeds of the EUR 245 million equity investments by Youngman and Pang Da, which are still subject to approval by relevant authorities and parties which Swan expects to receive during the next weeks.


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  • 21 Comments
      dklkse1
      • 3 Years Ago
      I'm REALLY hoping that Saab won't end up being a money pit... I'm rootin' for them.
      Autoblogist
      • 3 Years Ago
      I'd love to at least one spy shot of a Saab 9-3 test mule, just one. Is it still just a clay model on Castriota's desk right now? Give the public something to anticipated here.
        hobbesfanmaster
        • 3 Years Ago
        @Autoblogist
        Actually, despite the current situation, development of the 9-3 replacement is still happening, according to Steven Wade's blog, Inside Saab, which is a part of Saab's corporate website. We already have seen mules of this new model, but with the current 9-3's body. However, Jason Castriota has repeated that the Phoenix is a large hint towards the future 9-3; he even went as far as to say that the front of the car will look almost exactly like the front of the Phoenix.
        Synthono
        • 3 Years Ago
        @Autoblogist
        You need money to make a test mule.
      tenspeeder
      • 3 Years Ago
      Go Saab! What are they on now, life #14? I've lost count
      Carl Zipfel
      • 3 Years Ago
      "Saab sounds confident that both governments will approve the investment, though Chinese authorities have sunk deals like this before by dragging their feet or refusing to grant approval. A similar investment deal by China's Hawtai Motor Group was abandoned earlier this year for a number of reasons, chief among them the government's inability to approve the transaction in time." They killed the HUMMER deal too...Good luck Saab...I wouldn't trust them
      Iggie
      • 3 Years Ago
      It's a Saab thing.
      CarCrazy24
      • 3 Years Ago
      Wonderful news! Let's bring that 9-5 Sport Combi here please
      • 3 Years Ago
      [blocked]
        hmmwv
        • 3 Years Ago
        Your comment will be downranked into oblivion. I guarantee it.
      AngeloD
      • 3 Years Ago
      The Chinese Gov't was foolish to block a similar buyout for Hummer. Gas prices are down for the medium term anyway, and a diesel Hummer would be a good seller as a luxury SUV in a lot of locales where Land Rover is strong.
      Westcoastsaab
      • 3 Years Ago
      Go Saab! In a world of very, might I say boring group of car choices, it's nice to know that one "different" and and even "renegade" choice still remains. Even if it's on Life Support. Gasp. Yes, Saab is not for everyone, but do they need to be to make a profit? It's a niche player, for niche people. In all good respects to Saab, the current 9-5 should have been released as a 2008 Model. Wow, would that have been a great model back then, and aside from some interior modifications including choice of better materials, and a direct injection of their v6 Aero, it's a winner. Just need to get that price down a bit! Let us all root for Saab. The comment about the Universe wanting Saab to go away is very reminiscent of the so called experts calling for the end of Apple Computer, remember? Ugh, a world filled with bland Beige or Black pc's all running Windows! Saab needs a Bob Lutz to head the development of the cars worldwide (and older Steve Jobs) and some screwed cost cutters to trim away the fat from the production lines and management so a car company producing fewer quality cars can remain profitable for those of us who hate bland, boring, and ordinary. Yes, let the masses by Dell pc's- that's fine. I would rather have a cool white Apple Ipad! Saab, please stay around for a good long while. We're there to buy some fun cars.
        • 3 Years Ago
        @Westcoastsaab
        [blocked]
          Westcoastsaab
          • 3 Years Ago
          Hmmmmm. Smaller factory, less overhead, less employees, smaller scale, but better cars appealing to a decent yet niche audience. I believe they can pull it off. We're not talking GM ya know. And, by the way, GM, Chrysler, and Ford almost stepped off the cliff. It's a tough business to be in all the same.
      Black Pug
      • 3 Years Ago
      Looks like you can keep beating a dead horse.
      • 3 Years Ago
      [blocked]
      • 3 Years Ago
      [blocked]
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