Autoblog

GM taking issue with Saab ownership change

Jeremy Korzeniewski — Fri, 04 Nov 2011 18:45:00 EST

Filed under: China, Europe, Government/Legal, GM, Saab, Earnings/Financials

Big trouble is brewing in little China. While Swedish automaker Saab was has agreed to sell itself to Pang Da Automobile Trade Co. and Zhejiang Youngman Lotus Automobile Co. for what seemingly amounts to a pittance ($142 million and up to $854 million in long-term funding), General Motors, Saab's former parent in the United States, is apparently none too pleased.

In a statement by spokesman Jim Cain, General Motors noted the following: "GM would not be able to support a change in the ownership of Saab which could negatively impact GM's existing relationships in China or otherwise adversely affect GM's interests worldwide."

How would GM's Chinese efforts be negatively impacted? Remember that Saab's current line of vehicles uses major structures and technologies developed from The General's latest parts bins. Consider, too, that GM has a major deal with SAIC, the largest automaker in China. If Pang Da and Youngman were able to procure GM's intellectual property and technologies as a result of the Saab purchase - especially at cut-rate pricing - SAIC and its costlier joint venture with General Motors would look more than a bit out of place.

According to Reuters, General Motors likely still has enough control of Saab to squash the pending sale to its would-be Chinese owners if it is in the company's best interest to do so. Plus, the Chinese authorities have yet to put their stamp of approval on the purchase of Saab. In other words, this already long and impossibly complicated story continues to get even more so.

GM taking issue with Saab ownership change originally appeared on Autoblog on Fri, 04 Nov 2011 18:45:00 EST. Please see our terms for use of feeds.

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Saab's Chinese buyers commit over $850M in long-term funding

Steven J. Ewing — Mon, 31 Oct 2011 10:45:00 EST

Filed under: China, Saab, Earnings/Financials

Saab may have finally been saved last week when Chinese companies Pang Da Automobile Trade Co. and Zhejiang Youngman Lotus Automobile Co. agreed to buy the Swedish automaker, thus providing some much-needed short- and long-term financing. Pang Da and Youngman purchased Saab for 100 million euros ($142M USD) and they are offering up a €50 million ($70M) bridge loan. Most importantly, the Chinese companies have now pledged €600 million ($854M) in long-term funding. That's assuming, of course, that the Chinese government gives this deal its seal of approval - a very big "if."

According to Saab's restructuring plan, vehicle production will once again resume in Sweden and Mexico, though vehicles may be built in China in the future. Saab is keen to get its latest products - the 9-4X and 9-5 SportCombi - out to its key markets, and hopes to sell up to 55,000 units in 2012, with an even larger goal of moving 205,000 units per year in the long-term. That's very optimistic, especially considering that in 2010, Saab sold just under 32,000 vehicles.

Even so, Pang Da and Yougman are confident that Saab can become a profitable company in the very near future. The restructuring plan states that 2012 and 2013 will be "financial transition years," with full profitability expected in 2014. Follow the jump to read the full release.

Continue reading Saab's Chinese buyers commit over $850M in long-term funding

Saab's Chinese buyers commit over $850M in long-term funding originally appeared on Autoblog on Mon, 31 Oct 2011 10:45:00 EST. Please see our terms for use of feeds.

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Saab to finally succumb to bankruptcy today?

Chris Paukert — Tue, 11 Oct 2011 09:45:00 EST

Filed under: China, Europe, Government/Legal, Saab, Earnings/Financials

If a new report by Autocar is to be believed, Saab may be pushed into bankruptcy as early as later today. According to the British weekly, emergency financial support from Chinese carmaker Youngman is "virtually certain to be blocked" by its home government because the deal does not include any new intellectual property rights. Saab not only needs approval from Chinese authorities to broker the deal, it must also still see its reorganization formalized in Swedish courts.

Saab has been waiting on both a £60 million loan ($94M USD) from Youngman and an additional £210M ($328M) from Zhejiang Youngman Lotus Automobile and PangDa, but to date, funds have not been cleared because of governmental bottlenecks and negotiating hurdles.

Saab to finally succumb to bankruptcy today? originally appeared on Autoblog on Tue, 11 Oct 2011 09:45:00 EST. Please see our terms for use of feeds.

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Saab production stoppages still possible this week

Zach Bowman — Tue, 07 Jun 2011 18:01:00 EST

Filed under: Europe, Plants/Manufacturing, Saab

It sounds like Saab can't win for losing. Reuters is reporting that the Swedish automaker had to stop production again on Tuesday, June 6, due to possible parts shortages. Saab just recently started its lines back up after a nearly two-month stoppage brought about by cash shortages.

Apparently, not all of the company's suppliers have been fully paid, which could account for the lack of components. Saab says it fully expects things at the company's plant to be back on track by the end of the week.

Meanwhile, the company's deal with Chinese distributor Pangda is still awaiting approval from the People's Republic. The deal is expected to go through without a hitch. Even so, it won't mean an end to the problems that Saab is currently facing. Reuters quotes Tim Colbeck, the company's new chief operating officer, as saying that the Pangda deal is a good midterm solution to help carry the troubled automaker through the remainder of 2012.

Saab production stoppages still possible this week originally appeared on Autoblog on Tue, 07 Jun 2011 18:01:00 EST. Please see our terms for use of feeds.

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