Saab has officially confirmed that it has terminated its deal with Pang Da and Youngman. In a press release, the company said that the deal came to an end because both of its Chinese partners failed to live up to their end of the bargain; namely supplying Saab with the interim funding necessary to continue operations during the manufacturer's reorganization. In response, Pang Da and Youngman apparently offered a complete takeover by purchasing 100-percent of the Swedish automaker's shares, but Saab since rejected that offer, calling it "unacceptable." However, Saab notes that further discussions are ongoing.

That leaves the future of Saab in its most precarious state since the deal with Pang Da and Youngman was initially announced back in July. While the automaker recently signed a smaller deal with North Street Capital, it's unclear where Saab is headed in the immediate future. Why has CEO Victor Muller and his team decided that it's better to risk slipping into bankruptcy instead of having the brand live on under Chinese ownership? Is there another partner in the works, is this just a misguided power play, or is there something else afoot entirely? Only time will tell – as Saab's last 24 months indicate, absolutely nothing can be ruled out. For now, hit the jump for the full press release.
Show full PR text
SWEDISH AUTOMOBILE N.V. TERMINATES SUBSCRIPTION AGREEMENT WITH PANG DA AND YOUNGMAN

Zeewolde, The Netherlands, 23 October 2011 - Today, Swedish Automobile NV ('Swan') announced that it has given notice of termination with immediate effect of the Subscription Agreement of July, 2011 entered into by Swan, Pang Da and Youngman.

Swan took this step in view of the fact that Pang Da and Youngman failed to confirm their commitment to the Subscription Agreement and the transactions on the agreed terms contemplated thereby as well as to explicit and binding agreements made on October 13, 2011 related to providing bridge funding to Saab Automobile AB ('Saab Automobile') while in reorganization under Swedish law.??Pang Da and Youngman have presented Swan on October 19 and 22 with certain conditional offers for an alternative transaction for the purchase of 100 percent of the shares in Saab Automobile which are unacceptable to Swan. However, discussions between the parties are ongoing.


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  • 16 Comments
      hmmwv
      • 3 Years Ago
      Internal politics definitely played a role in this as we heard from the previous article. It's a shame to see SAAB slowly fell to its current state, I remembered when I was in college the 9-3 was my dream car. Maybe market it to some rich Middle Eastern investors?
      jbolton87
      • 3 Years Ago
      Saab's uphill battle includes getting a comprehensive dealer network if they ever become re-established. I live in N. Virginia and would have to look far and wide to find more than one dealer. A serious advertising campaign, hugely supported product, and a considerable price reduction of some of their offerings would all be needed to get them back on the map. Saab is all but forgotten when the car comparisons are published, with the typical order of marque's in it's class being BMW, Audi, MB, Lexus, VW, Volvo.............. *Long Pause* ......Saab. I'm rooting for Saab, but it will take many years of development for that to change.
      Hazdaz
      • 3 Years Ago
      I rather see SAAB die than fall into the hands of the Chinese.
        • 3 Years Ago
        @Hazdaz
        [blocked]
        Bruce Lee
        • 3 Years Ago
        @Hazdaz
        I don't think the Chinese care, they hate this deal except for Pang Da and Youngman so they'd rather see Saab die as well.
      donnieorama
      • 3 Years Ago
      Good. The thought of a Chinese company taking over SAAB and then cutting it up into little pieces as it sells rebadged Chinese crapboxes as 'SAABS' would give me nightmares.
      Westcoastsaab
      • 3 Years Ago
      Something is up, and the Chinese were playing "dirty" on this deal. Classic Chinese business practice of "the checks in the mail", yet I believe something is in the works and Saab needed to buy some time. Maybe North Street Capital maybe rushing to grab this deal. Can you imagine just how pissed off you might be when the Chinese are reported to offer a fraction of what they promised, then looked you straight in the eye thinking you might grab at it? Saab can still sell cars in China, just not through this group of slimeballs. Imagine trying to get anything done in the future with that crew. They just wanted to figure out how to build a car in China without everyone dying in a 20 mph offset collision like the current Chinese cars offer. Get ready world..
      cxv
      • 3 Years Ago
      I was talking to a friend about Saab and how sad is to see this once great company fall like this and we came up w/the idea thay maybe Mercedes should buy Saab to compete in the small premium sector like MINI is for BMW. We feel MB should not be builiding B or A class cars. MB should go back to be what it used to be and if they want to be small perfomance or volume cars buy Saab. What do you think?
        • 3 Years Ago
        @cxv
        [blocked]
          Bruce Lee
          • 3 Years Ago
          Volvo is a Geely subsidiary and the Swedish government basically insulted Geely's founder/CEO when he went to visit about buying Saab.
      superchan7
      • 3 Years Ago
      These "nope didn't happen!" press releases are getting old! MB has been making buses, trucks and E-class taxis forever, and economy cars such as the A-class began in 1997. Of course, over here MB-USA wants nothing to do with these "brand-diluting models". I doubt Daimler AG would be interested in Saab.
      avatar-ds
      • 3 Years Ago
      What is not clear about this? The Chinese withdrew they offer for financial support and instead moved to take over Saab on some bad terms. No luck (for both parties).
      Hellevectia
      • 3 Years Ago
      Just what is going on in the world?... It'd be a shame if Saab died. They deserve to live more than my country's Proton and Perodua with their protectionism. They bleed the people dry just to keep on producing more and more crap-boxes. Fact: Saabs are unique and they're rich in heritage.
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