All those months that the Saab saga was unfolding before our eyes, the Swedish carmaker’s North American operations were excluded from any deal or restructuring plan.
Now the parent company is seemingly closing shop after Monday’s filing for bankruptcy and the appointment of two receivers who, unless something dramatic occurs, will oversee the company’s liquidation.
Saab Cars North America wants to avoid being declared bankrupt or liquidated. Therefore its Chief Operating Officer, Tim Colbeck, announced on Wednesday, December 21, that the company has appointed McTevia & Accociates, a specialist in corporate turnarounds, as an outside administrator.
Saab is still trying to work through its problems, but the Swedish carmaker has some good news from the States. The first examples of the firm’s new crossover, the Cadillac SRX-based 9-4X, have just arrived at US showrooms.
“Our first vehicles are just hitting retailers and our first customer sale took place last weekend at Saab North Olmstead in Cleveland, Ohio” said President and COO of Saab Cars North America, Tim Colbeck.
The European Investment Bank has finally approved the lease of 50.1% of Saab Automobile’s property to a Swedish Consortium led by Hemfrosa Fastigheter AB for a period of 15 years. The deal is expected to net Saab Automobile 25 million Euros ($41 million).
Saab’s parent company Swedish Automobile NV said on Monday it converted the non-binding memorandum of understanding with Pang Da Automobile Trade Co. and Zhejiang Youngman Lotus Automobile Co into a final agreement. However, the deal is still subject to regulatory approval from Chinese and Swedish authorities as well as the European Investment Bank.
In addition to the above agreement, Saab announced the formation of a Sweden-based joint venture company between itself and Youngman called NPJV, which will focus on the development of three new product models.
Another day, another new story for Svenska Aeroplan Aktiebolaget –or, as you might know it, Saab. The Swedish company announced on Wednesday that it has entered a €25 million convertible bridge loan from Gemini Investment Fund Limited.
The loan’s annual interest is 10% and the conversion price is €1.38 per share, while Saab can at any time repay the loan, presumably when the expected Pang Da and Youngman Lotus funding is received, without a penalty.
Another day, another chapter in the ongoing saga that is the survival of Saab. After yesterday’s order from a (yet unnamed) Chinese company, which temporarily solved its cash-flow problem, today the automaker announced that it has reached an agreement with a consortium of Swedish real investors led by Hemfosa Fastigheter AB, for the sale of 50.1% of Saab Property for a period of 15 years.
Maybe the future of Saab isn’t as dark as it looks, and the voluntary bankruptcy proposed by suppliers isn’t the only solution. Well, at least for now. That’s because the Swedish automaker announced today that an unnamed Chinese company place an order to buy 582 cars, with a total value of € 13 million.
The pre-payment is to be received this week, giving Saab a much needed funding to pay its workers and suppliers. This, however, is only a short-term lifeline for the ailing company and the efforts to secure funds that will guarantee the brand’s future and restart production, which has been halted again since June 8, are ongoing.
New clouds are forming over Saab as the automaker’s parent company, Swedish Automobile N.V., formerly known as Spyker Cars N.V., said on Thursday it will be unable to pay its 3,800 employees their wages because it has not yet obtained the necessary short-term funding.
Swedish Automobile said it and Saab “are in discussions with various parties” to secure short-term funding, including through a sale and lease-back of Saab’s real estate assets.
Ailing Swedish car manufacturer Saab will not be producing new vehicles for at least two more weeks until it resolves the problems with its suppliers, the company said on Monday.
"There will be no normal production during weeks 25 and 26 (June 20th-July 3rd)," Saab spokeswoman Gunilla Gustavs told Reuters. "We are still negotiating with all suppliers and we need to get everyone on board at the same time. The weeks of 27-29 (July 4th-24th) are planned to be normal working weeks".
If there was ever an award for bad timing, Saab’s UK division would probably be a front-runner this month. You see, there is something fundamentally wrong with announcing pricing and details on a new product when its production has been suspended (even if, as Saab claims, proves to be temporary, in which case, why not wait?).
In any case and with Saab’s future depending on deals that still need to be approved from Swedish, European and Chinese officials, the company gave out UK pricing information on the 2012 model year 9-5 range, which benefits from the introduction of the SportWagon and a series of enhancements, including additional features and further reduced CO2 emissions for all engines.
The ink has barely dried on Saab’s latest attempt to form a preliminary deal with China’s Pang Da Automobile and Youngman, and the Swedish company is faced with yet another problem as Russian investor Vladimir Antonov has withdrawn his proposal to buy and leaseback Saab property.
"The property sale is now being discussed with external investors," said Lars Carlstrom, Antonov's representative in Sweden. However, Carlstrom noted that the Russian banker was still interested in becoming a shareholder in Saab’s parent company Spyker Cars NV.
Following a preliminary release earlier today, Saab has issued the first official photograph of its 9-5 SportCombi. The estate version of the 9-5, which will carry the SportWagon moniker in certain markets including the UK, will get its public debut at the Geneva Motor Show in March.
Saab has not yet released detailed information on the engine lineup, but buyers should expect to see a similar mix of turbocharged diesel and gasoline motors (depending on the market of course) to the sedan variant when it arrives in the market this Fall.
For the time being we only have a single official picture of the 9-5 SportCombi / SportWagon, but Carscoop reader Torben just sent in several renderings of the car sourced from the patent drawings filled in the U.S., which you can check out after the jump.
Lately, it seems whenever there’s a problem with production at Saab’s Trollhattan plant, the Swedish automaker’s parent company Spyker Cars N.V. announces a new deal with a Chinese company.
Today, Spyker signed a non-binding memorandum of understanding (MOU) with two Chinese firms, Pang Da Automobile Trade Co., Ltd (Pang Da) and Zhejiang Youngman Lotus Automobile Co., Ltd. (Youngman), which if approved by regulators, could see the company falling into the control of Chinese hands. We'll remind you that Saab had previously signed a deal Chinese firm Hawtai but it failed to go through Chinese regulators.
Industrial design student Eric Leong, who we first heard about with the 2015 Toyota Prius study, has taken two famous brands, Sweden’s Saab and Switzerland’s Nestlé and melded them. The result is the Saab Nespresso Concept, a four-seat sport coupe with some clever design touches. Outwardly it looks like a cross between the 2008 Saab 9-X Air BioHybrid Concept and Toyota’s FT-86 Concept of 2009, but it’s on the detail side of things were Leong’s idea really shines.
The on-off production drama over at Saab’s Trollhättan facility in Sweden continues as the troubled automaker said Wednesday that it temporarily halted production due to a lack of components from its suppliers only two weeks after resuming making cars following a seven-week shutdown.
Saab said that it anticipated production hiccups in the start-up phase, as the supply chain still is not fully operational with some suppliers holding back until they get paid and others trying to re-stock.
In today's highly competitive auto market, one would think there are no new niches left to explore. Well, it's pretty true, except for imaginative individuals like the crew from Sweden’s Gray Design, which also penned the Saab supercar.
Enter the world of the Strand Craft Limousine Beach Cruiser, a vehicle that looks like a crossover between a limousine, a convertible and a yacht – yes, you read correctly, a yacht. Essentially a beach shuttle, the Stand Craft has been conceived for luxury hotel chains willing to offer their clients premium service. More specifically, to carry six passengers from the hotel to the nearest beach as fast and as comfortable as possible.
Chinese distributor Pang Da Automobile is pumping more cash into Spyker NV's ailing Swedish unit Saab by placing a new order for 630 vehicles valued at €15 million or US$21.5 million. This latest order comes after an earlier one last week for 1,300 cars worth €30 million (US$43.2 million) and is part of a broader deal in which Pang Da agreed to buy a 24 percent stake in Saab’s parent company Spyker for €65 million (US$93.5 million).
The Swedish automaker said that as with the first order, Pang Da will pay the additional €15 million order up front with the funds expected to be received by the end of this week. Delivery of the vehicles ordered by Pang Da will start in the fall of this year.
Saab is back in the business of making cars again -at least for now- almost two months after production came to a halt on April 6 when the company’s suppliers stopped deliveries of parts in protest over unpaid bills. The Swedish company was able to restart production after receiving €30 million (US$42.8 million) in advance on a deal it has signed with Chinese car distributor Pang Da Automobile.
The China company’s CEO, Mr. Pang Qinghua, visited the Trollhättan factory today together with CEO and Chairman of Saab Automobile, Victor Muller, and witnessed the first vehicle to roll off the assembly line. Saab said around 100 cars were built today but plans to “increase the daily production rate in the coming weeks in parallel with the full re-establishment of the supply chain”.
Saab is in trouble. With mounting debts and limited capital investment, the Swedish company is a prime candidate to go the way of the dinosaurs. The troubled automaker has not built a single vehicle since the 1st of April, and a much touted deal with China’s Hawtai Motor Group has fallen through. They did however sign a Memorandum of Understanding (MoU) with another Chinese company called Pang Da Automobile Trade Co. Ltd, earlier this week, but we will have to wait and see if the deal goes through.
In light of this, I’ve thought up four plausible (though unlikely) scenarios for Saab. These range from the hugely cynical all the way to the brazenly optimistic. After all, isn’t it better than Saab has some future rather than no future at all? Without further ado, here are your options:
For the second time this month, and shortly after the break up in talks with the Hawtai Motor Group, Saab’s parent company Spyker Cars N.V. today announced that it has signed a Memorandum of Understanding (MoU) with a new Chinese company to provide fresh funds for the deeply troubled Swedish automaker. This time Spyker signed a tentative finance and import deal with Pang Da Automobile Trade Co., Ltd (Pang Da), said to be China’s largest publicly traded automobile distributor with over 1100 dealerships in the country.
