Saab to be rescued by Chinese and Russian investors?

Saab to be rescued by Chinese and Russian investors?

Is Youngman looking to supplement it’s current Proton platform-based offerings with additional more upmarket models? We hear that Saab is nearing to confirming a deal with one out of a total of three Chinese automakers that it is currently talking to, which include Youngman Automobile Group, Great Wall Motor, and Jiangsu Yueda Group.

The deal would allow Saab to raise funds to stay afloat – things are so bad that it has halted production. At the same time, it would allow Saab a way to enter the Chinese market – the world’s biggest auto market. The Chinese company would jointly produce Saabs in China, and can also distribute the cars. A Chinese manufacturer Beijing Auto Industry Corp is already licensing the last generation Saab 9-5 platform and has showcased a concept based on it called the BAIC T60.

Because of the current production halt, Saab will most likely not be able to meet its sales target of 80,000 units a year this year. It did 30,000 cars last year. Sales this quarter was over 9,000 cars, compared to over 3,000 cars the same quarter last year. It’s parent company Spyker posted a loss of 79 million Euros this recent quarter, compared to a profit of 6.96 million Euros the same quarter a year before. They’ve clearly took on something that’s proven to be a little too big for them to handle.

“We have opened up alternative routes to fund the company mid and short term including, but not limited to, discussions with Chinese car manufacturers,” said Spyker CEO Victor Muller. Sweden’s Debt Office and General Motors have also approved a plan for Russian businessman Vladimir Antonov to invest 30 million Euros into the company for a 29.9% stake.

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Paul Tan

After dabbling for years in the IT industry, Paul Tan initially began this site as a general blog covering various topics of personal interest. With an increasing number of readers paying rapt attention to the motoring stories, one thing led to another and the rest, as they say, is history.

 

Comments

  • again the Chinese taking advantage of all the tech at a bargain with a huge potential market to sell to.

    the latest batch of SAABs are really nice and I hope this brand doesn’t die-off.

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  • khairul on May 01, 2011 at 9:07 pm

    Youngman Automobile Group?? then proton sure headache… but i do believe on DSZ to turn things around… not like TM…

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    • redboy on May 02, 2011 at 11:16 am

      believe and capability is 2 different thing in WORLD market. No one give privilege to any one, its pure business. And with a practice in a monopolized local market, you believe the people can scale up to the world business? common, be real.
      Have you last check how many money is throw into the Lotus project (they raise loan lately), and the outcome..? Lotus handling? F1? Its such a joke that the money could have bought another car manufacturer.
      Of course, in Msia, the P1//P2 is target to earn money for the cronies, since Msian are the ONLY buyer in the world will tolerate such parts quality is supplied. We basically has no choice.

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      • MoFaz on May 02, 2011 at 8:44 pm

        wow.. would you simply buy another car manufacturer when then one you already have are not producing their true potential yet? and would buy without proper study?

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  • khairul on May 01, 2011 at 9:33 pm

    after google, found this guy Antonov also bought Portsmouth FC last week… two major business deals in one week…

    http://www.goal.com/en-gb/news/2897/championship/2011/04/25/2457169/vladimir-antonov-agrees-17m-deal-to-take-over-portsmouth

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  • look at how volvo transformed

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  • tiadaid on May 02, 2011 at 7:30 am

    Proton should buy SAAB. But then Malaysians would definitely shoot it down.

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  • Jerry on May 02, 2011 at 7:57 am

    With BAIC already in the ring with the old Saab platform, other Chinese interests in financing the Swedish car maker will only spices things up. A feeling of deja vu is creeping over me. Remember the MG Rover saga? Tee hee!

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    • rally_fan00 on May 02, 2011 at 4:49 pm

      rover seems to be doing well again after being bought by the chinese. they’ve even reopened the famous longbridge plant in the UK.

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  • I agree with tiadaid that Proton should buy Saab out. I dont think this deal will keep them afloat forever. Sounds to me like they need to find the real cause of their troubling past and move on.

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  • redboy on May 02, 2011 at 11:05 am

    Proton have the opportunity to buy so many problematic manufacturers and boost up the sales, infact, using “Lotus” driving feel for almost a decade already since the WAJA. I mean…
    this shows how short sighted those management is..only want to earn local’s money through monopolized. They never have chance to compete in the world. It pure short sighted group of people when the local policies help them to make easy money.

    The tata, chinese, russian grab so many car manufacturer and shift the car manufacturer, it will be China car manufacturer in 10 years time. With cheaper labour, and if the quality boost up (since they target world market), Protong will still only…for the Malaysian’s nightmare.

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  • Remember MV Augusta? I think proton don’t have balls to buy another company like that.

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  • the brand name are rescued by chinese because chinese know they got big market even in a big china land alone.

    in term of styling saab need to push hard like the volvo, targeting markets even the young people.

    but saab it need unique people to own it

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