Despite shunning a previous takeover bid earlier this month, Swedish Automobile N.V. and Chinese automakers Youngman and Pang Da have signed a memorandum of understanding for the outright purchase of Saab and Saab Great Britain for just €100 million, or around $140 million USD. The deal is still subject to the approval of various authorities, including the Chinese government, but the deal is expected to go through. Guy Lofalk, an administrator in the reorganization of Saab, has officially withdrawn his application to withdraw from reorganization. Unfortunately, this doesn't mean that Saab is completely out of the woods.

According to The New York Times, industry watchers suggest may take anywhere from $800 million to $1.5 billion to set the beleaguered automaker back on the path toward profitability, and it's unclear whether Pang Da and Youngman have the desire and the ability to invest that sort of cash into the company. At this point, Saab hasn't produced a single vehicle since spring of this year, and it remains unclear when – or even if – assembly will resume. Hit the jump for a press release on the deal.
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Zeewolde, The Netherlands, 28 October 2011 - Swedish Automobile N.V. (Swan) announces that it entered into a memorandum of understanding with Pang Da and Youngman for the sale and purchase of 100% of the shares of Saab Automobile AB (Saab Automobile) and Saab Great Britain Ltd. (Saab GB) for a consideration of EUR 100 million.

Final agreement between the parties is subject to a definitive share purchase agreement between Swan, Pang Da and Youngman, which will contain certain conditions including the approval of the relevant authorities, Swan's shareholders and certain other parties. The consideration of EUR 100 million will be paid in instalments. An important consideration for Swan to enter into the transaction is the commitment of Pang Da and Youngman to provide long term funding to Saab Automobile.

The administrator in Saab Automobile's voluntary reorganisation, Mr. Guy Lofalk, has withdrawn his application to exit reorganisation. The MOU is valid until November 15 of this year, provided Saab Automobile stays in reorganisation.


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    • 1 Second Ago
  • 51 Comments
      4 String
      • 3 Years Ago
      Well, to be fair, I haven't seen Chinese ownership whittle down a Volvo S60 to a terrible product quite yet. At least Saab is alive. Here's to hoping that ample decision making is left up to the Dutch/Swedish corporate board / engineers. I would still like to see that Saab 93 that's been promised for so long. If the Chinese can fund a project like that (they already fund our gov't anyway -____-), at least that car will see the light of day. I mean seriously, who else did you expect to give Saab the funds? But damn, those evil Chinese (Austin Powers / Michael Caine reference) are so damn Machiavellian. o_o
      dukeisduke
      • 3 Years Ago
      Whenever I see "Youngman", I think of Y-M-C-A..
        Bentot
        • 3 Years Ago
        @dukeisduke
        "Whenever I see "Youngman", I think of Y-M-C-A.." ...and a Pan(g) Da. Bestial soundingly sick....
      Eddie
      • 3 Years Ago
      Volvo is doing really well after selling to Chinese, I hope Saab could be even better.
      ryan
      • 3 Years Ago
      Hopefully we can see saab turn into somthing cool again.
      • 3 Years Ago
      [blocked]
      PJPHughes
      • 3 Years Ago
      I hope this works out for good this time. Having driven both a 9-5 2.0T and a Turbo6 XWD, I can tell you they are great cars, and like every Saab before it, is a car I'd want to be in, in a crash thanks to the safety ratings. I await the 9-5 Sport Combi, and look forward to being one of the few "wagon fans" left in the US.
      4gasem
      • 3 Years Ago
      Write another one off my list... Volvo, Saab...
        PJPHughes
        • 3 Years Ago
        @4gasem
        I guess that means you should write off Dell, HP, Sony, every game console, just about every toy company...let's face it, the Chinese make everything these days because we as consumers like things cheap. Volvo's are still built in Sweden under Geely, as will Saabs be (hopefully).
        Drew
        • 3 Years Ago
        @4gasem
        Care to explain your reasoning? It's a global economy whether you like it or not.
      TriShield
      • 3 Years Ago
      I have no idea how on Earth this would even feasibly work. One of those Chinese companies doesn't even make cars. This is about as absurd as the Chinese heavy equipment manufacturer wanting to buy HUMMER off of GM years ago and the Chinese government nixed it. I doubt that this will be any different, the Chinese government wants less automakers in China (it's said there are around 100), not more. I also can't see GM approving this seeing as how Saab's entire product line is their vehicles containing all of their intellectual property. Which is probably why these companies want Saab, to shut it all down and move most of the production to China for China ala MG.
        aatbloke1967
        • 3 Years Ago
        @TriShield
        "Which is probably why these companies want Saab, to shut it all down and move most of the production to China for China ala MG." MG Rover wasn't bought as a company by the Chinese. It was liquidated and wound up, and later its physical assets and intellectual property rights were sold off. The Chinese companies which build MG and former Rover products are completely different entities. This isn't the case here. Although Saab isn't currently viable as a going concern, it's simply an outright sale of the entire company. The legal entity hasn't changed. How Saab's new owners move forward remains uncertain - they could indeed shut it down and start a new company - but its unlikely they will love production entirely from Sweden since they know it will alienate prospective buyers.
        TriShield
        • 3 Years Ago
        @TriShield
        GM owns a significant stake in Saab and the spinoff of the company has conditions regarding GM's engineering, parts and intellectual property. From TTAC today, "In case anyone has forgotten, GM “has preference shares in Saab, supplies it with parts and is a creditor.” Does GM want to be in business with Pang Da and Youngman, two bit players in the Chinese scene, when it has such strong ties to the much stronger firm SAIC? Furthermore, if the NDRC still doesn’t want the Saab deal to happen, GM might have an opportunity to win some guanxi with the government by blocking the deal for them. Otherwise, the NDRC will continue to wait out the clock, allow this MOU to expire, and kill off Pang Da and Youngman’s ambitions without a face-losing confrontation." Saab isn't really independent of GM. Of course, GM was stupid enough to agree to allow Muller and Spyker to operate Saab themselves so they could possibly agree to this idea. That doesn't mean China's government will however.
          aatbloke1967
          • 3 Years Ago
          @TriShield
          "GM owns a significant stake in Saab and the spinoff of the company has conditions regarding GM's engineering, parts and intellectual property. From TTAC today," GM does not own any of Saab's shares. The deal that GM struck to sell Saab involved a mixture of cash - from a loan which Spyker/Swedish Automobile financed - and shares in Spyker itself. The agreement did include an agreement to supply parts and engineering, which would probably be renegotiated with the new owners, but Saab itself is owned entirely by Spyker/Swedish Automobile and GM would have no power to stop or divert any sale of Saab itself.
        Drew
        • 3 Years Ago
        @TriShield
        Why would GM have to approve it?
          aatbloke1967
          • 3 Years Ago
          @Drew
          They wouldn't. Saab is owned by a Dutch company, Swedish Automobile NV. It's that company which is selling Saab to the Chinese company.
          Drew
          • 3 Years Ago
          @Drew
          Thanks, that's what I thought.
      IBx27
      • 3 Years Ago
      I will now join many others in complete disregard of this brand's existence.
        aatbloke1967
        • 3 Years Ago
        @IBx27
        Good lord ... are you a teenager or something?
          aatbloke1967
          • 3 Years Ago
          @aatbloke1967
          So how have the Chinese managed to destroy Volvo? The Chinese simply own the shares; Saab retains its board, its management, and its technical facility.
          IBx27
          • 3 Years Ago
          @aatbloke1967
          No, I just really don't like china getting its hands on brands that used to be fine.
          aatbloke1967
          • 3 Years Ago
          @aatbloke1967
          "Volvo hasn't put anything new out since they were taken over. That's how volvo hasn't gone to the crapper yet." Answer the question. Has their reliability, reputation, engineering, quality, been destroyed? No. Nor will it be. Geely is merely a holding company, it's there to provide product investment. When companies buy others - regardless of where they happen to be domiciled - they do so for one purpose. To make money. They're in it to see Volvo become more successful. They're not in it to fritter the reputation of Volvo away and make plastic toys in Taiwan.
      Ryan
      • 3 Years Ago
      China.....yuck.
      50 AKA Ferrari
      • 3 Years Ago
      As the world turns.... Kill this brand off already. Enough is enough, it's image has been damaged beyond repair. Sell it to Occupy Wall Street people.
        aatbloke1967
        • 3 Years Ago
        @50 AKA Ferrari
        "Sell it to Occupy Wall Street people." Saab is a private company wholly owned by Swedish Automobile, a public company traded on the pan-European exchange but not on any Wall Street exchange.
      Ronnie
      • 3 Years Ago
      Good for Saab !!! Now go out there and make that kickass 9-3 I know you could ! More insight for those of you unfamiliar with this deal: The chinese companies still agree to making the 9-1, 9-6x, and 9-7 models, so a huge product offensive is going to be underway soon. They also expect to break even by 2014, sell 200,000-300.000 cars in china, and stay in Trollhattan.
        Hazdaz
        • 3 Years Ago
        @Ronnie
        "The chinese companies still agree to making the 9-1, 9-6x, and 9-7 models, so a huge product offensive is going to be underway soon. They also expect to break even by 2014, sell 200,000-300.000 cars in china, and stay in Trollhattan." Wow, you are naive, aren't you? The Chinese can SAY anything and everything they want at this stage to get the deal signed. But once Youngman and Pang Da actually own SAAB, all bets are off. They can shut their Swedish facilities the next day and ship everything over to China and no one could say anything about it. Realistically, they will probably give SAAB the opportunity to turn things around and not change too much in the short-term, but you better believe that all of SAAB's intellectual property is going to be shipped over to Asia almost immediately. SAAB might have ~5 year old GM technology, but that's still decades ahead of what the Chinese are producing right now on their own. Basically for a measly $140 Million, Communist Chinese has bought access to 1st-World automotive technology and engineering.
          hobbesfanmaster
          • 3 Years Ago
          @Hazdaz
          Wow; you really are a troll! What difference does it make if China is a communist country??? If Youngman and Pang Da lied, they can be in real deep ****. There are ways of managing companies well that aren't in China; note American Apparel, Volvo, Ford, Subaru, etc... So, shut your racist, immature mouth, and keep your thoughts to yourself: no need to criticise people for saying what they believe, especially because it has a good basis.
          • 3 Years Ago
          @Hazdaz
          [blocked]
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