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  • Saab selling off its Trollhattan museum vehicle displays

    In Cars, International News, Saab / By / / 6 comments

    According to a report, bankrupt Swedish automaker Saab is auctioning off its vehicles on display in its museum in Trollhattan. The company is selling the classic displays online, after failing to find a buyer for the entire collection. The collection is now closed except to serious bidders, with the cars available for viewing online.

    Bidding on the vehicles closes tomorrow, UPI reported. A total of 131 vehicles are up for grabs, from the 1946 Ursaab, the first Saab ever produced, to modern prototypes. Also on the list are a blue and yellow 1960 racing Saab as well as a 1981 Turbo 900 “Silver Beast,” which was custom-equipped for James Bond, replete with bullet-proof windows and tires, tear-gas ducts and a “SAAB 007″ license plate.

     

  • India’s Mahindra & Mahindra linked to bankrupt Saab

    In Cars, India, International News, Mahindra, Rumours, Saab / By / / 5 comments

    Saab may be bankrupt financially, but it has no lack of suitors. After rumours of a sale to the Turkish government surfaced last week, word has it that India’s biggest SUV maker is an interested party. The said company is Mahindra & Mahindra Ltd, which is interested in buying at least parts of bankrupt Swedish carmaker, two people familiar with the situation said.

    The maker of the Scorpio is in the process of trying to set up meetings with the two court-appointed administrators who are overseeing Saab’s bankruptcy, according to the sources, who want to remain anonymous because the plans are private. M&M spokeswoman Roma Balwani declined to comment.

    M&M is no stranger to buying a bankrupt company. In early 2011, the Indian brand completed the purchase of a 70% stake in SsangYong Motor Co for about $368 million, as it sought to benefit from the South Korean company’s technology and international sales network. After the takeover, SsangYong revealed that it plans to spend more than 240 billion won ($208 million) on product development and brand building in the year, hinting at M&M’s financial muscle.

    Recently, Mahindra also bought out Renault’s stake in the Logan sedan joint venture and took control of Bangalore-based Reva Electric Car Co, so its appetite is obvious. Is Saab about to join the list?

     

  • Saab in talks with Turkish gov’t, according to reports

    In Cars, International News, Saab / By / / 6 comments

    Saab Automobile, which declared voluntary bankruptcy last week, remains determined in its search for a suitor to save it from oblivion. According to reports, the Swedish carmaker is in talks with the Turkish government, after the latter supposedly expressed interest in the carmaker.

    Citing sources close to Saab’s management, German mag auto motor und sport reported that the talks have been initiated by Victor Muller, Swedish Automobile’s chief executive, adding that the discussions were still at a very early stage. It was however reported last week that Turkey’s Industry Minister Nihat Ergun said that the government was not interested in Saab.

    Elsewhere, another report by Swedish business daily Dagens Industri said that one of India’s largest carmakers may also be interested in buying parts or all of the company. Any deal would however need the approval of former owner and key licence holder General Motors, which blocked the last bid – by the Chinese – to save Saab.

     

  • Saab suspends warranty coverage on its US vehicles

    In Cars, International News, Saab / By / / 12 comments

    The not-so-pleasant news continues. Saab Automobile, which declared voluntary bankruptcy on Monday, has suspended warranty coverage on all of its vehicles in North America, according to a report. The suspension came into effect the same day the company’s bankruptcy petition was approved by a Swedish court.

    Effective December 19, “warranty coverage is suspended indefinitely for all new Saab vehicles sold. During this period, the warranty booklet must be removed from the owner information packet,” Saab Cars North America said in a statement to Automotive News, which carried the report.

    The suspension covers new-car warranties as well as powertrain and emission warranties, parts warranty (including safety belts and airbags) and items such as towing, goodwill and recalls/campaigns, among others. All new 2011 Saab models were last covered by a 4-year, 50,000-mile warranty that included roadside assistance, and no charge scheduled maintenance for three years or 36,000 miles.

    The Swedish automaker also told its North American dealers that new vehicles must be sold “as is.” According to a Saab spokesperson, the company now has less than 3,000 light vehicles in its US inventory.

    General Motors, which owned Saab from 1989 and handled Saab sales and covered warranties until February 2010, has however stated that it will honour warranties on all models sold when it owned the Swedish company.

    “In the event Saab cannot or will not fulfill its obligations to administer the warranty programs with its US and Canadian dealers through Saab Cars North America or otherwise, GM will take necessary steps to ensure that remaining warranty obligations on Saab vehicles marketed by GM in the United States and Canada will be honoured,” GM said in a statement.

     

  • Saab says goodbye after 64 years – Swedish automaker declared bankrupt after Youngman rescue attempt fails

    In Cars, International News, Saab / By / / 54 comments

    It’s curtains for Saab Automobile after 64 years in the business, as the last-ditch rescue plan by Chinese investor Zhejiang Youngman Lotus Automobile fell through, the attempt blocked by former owner and key licence holder General Motors. The Swedish automaker, which hasn’t made any vehicles since April, filed for voluntary bankruptcy yesterday, and a court approved the bankruptcy request, reports say.

    “After having received the recent position of GM on the contemplated transaction with Saab Automobile, Youngman informed Saab Automobile that the funding to continue and complete the reorganisation of Saab Automobile could not be concluded,” Saab’s owner Swedish Automobile said in a statement.

    “The Board of Saab Automobile subsequently decided that the company without further funding will be insolvent and that filing bankruptcy is in the best interests of its creditors,” and Swedish Automobile “does not expect to realise any value from its shares,” the statement added. Two receivers have been appointed to run the company.

    “There are parties out there that have expressed an interest to pursue a possible acquisition of Saab from bankruptcy,” Swedish Automobile CEO Victor Muller told reporters,. He said that it was now up to receivers appointed to oversee the bankruptcy process to judge such offers, the reports add.

     

  • Saab’s owners may be forced into voluntary liquidation, even if sale to Pang Da and Youngman goes through

    In Cars, International News, Saab / By / / 10 comments

    The Saab see-saw continues, and now, there’s a likelihood of liquidation for Swedish Automobile even if the company is sold to Chinese companies Pang Da and Youngman. It seems that the proceeds of the sale – and that of Spyker – may not be enough to pay off creditors.

    According to reports, brand owner Swedish Automobile – which has tentative agreements to sell both Saab and Spyker – will consider “all of its options,” including a voluntary liquidation, should the deals go through, the company said last Friday. The transactions – Saab for 100 million, and Spyker for 32 million – are set to raise a combined 132 million euros, though that amount is insufficient to cover the company’s debts of 136.5 million euros, it said.

    The company added that a lack of approvals and final agreements on the deals raises questions about the future of Swedish Automobile and any settlement with stakeholders. Earlier in the month, General Motors, which had preference shares in Saab, and which supplies the brand with crucial components, said it would not approve the sale.

    The clearance of Saab’s sale is also required from Chinese authorities, the Swedish government and the European Investment Bank. Swedish Automobile’s preliminary agreement with Zhejiang Youngman Lotus and Pang Da is valid until today, November 15.

     

  • Saab sale to Pang Da and Youngman to be reworked, after GM makes objections over the deal

    In Cars, International News, Saab, Youngman / By / / 7 comments

    According to reports, the rescue deal for Saab made by Pang Da and Zhejiang Youngman will have to be redone after General Motors made objections. “We have to go back to the drawing board,” said Viktor Muller, chief executive of Swedish Automobile.

    GM said yesterday it had decided to sever ties with Saab, revoking its commitment to supply it with vehicle components and the 9-4X model because of the risks posed by the pending sale of the brand to Chinese owners, the report states.

    An official statement from GM put the message across very clearly. “Although General Motors is open to the continued supply of powertrains and other components to Saab under appropriate terms and conditions, GM will not agree to the continuation of the existing technology licenses or the continued supply of 9-4X vehicles to Saab following the proposed change in ownership as it would not be in the best interests of GM shareholders.”

    Last week, GM had stated that it would be difficult to support a sale of Saab if the transaction hurt its existing tie-ups in China or its competitive position in other markets. The US automaker still has preference shares in Saab and is a major supplier of vehicle components, and so must approve the Pang Da and Youngman takeover. At this point, the fate of the Swedish automaker continues to hang in the balance.

     

  • Saab sold to Pang Da and Youngman for 100 million Euro

    In Cars, International News, Saab / By / / 30 comments

    And the deal is done – Swedish Automobile announced today that Saab will be sold to two Chinese companies for 901 million Yuan, which is about RM435 million or 100 million Euro. The two Chinese companies are Zhejiang Youngman Lotus Automobile and Pang Da Automobile.

    The deal comes after long negotiations, which included a previous offer from Youngman and Pang Da to buy 53.9% percent of Saab for 2.2 billion Yuan. It looks like the Chinese companies got a better deal now than the previous one. Earlier in the week Swedish Automobile had said it was terminating the investment deal with both companies, so it looks like all that talk has ended up with a very different walk.

    The Memorandum of Understanding for the purchase will be valid until November 15 this year, and in the meantime the sale has to get approval from Chinese regulators, the Swedish government, the European Investment Bank and General Motors, Saab’s former owner.

    This is not the first Swedish automaker to end up in Chinese ownership – Volvo is now owned by Chinese company Geely.

     

  • Saab ends investment deal with Youngman, Pang Da

    In Cars, International News, Saab, Youngman / By / / 4 comments

    Swedish Automobile, the company which owns troubled automaker Saab, has said it has ended a 245 million euro investment deal with Chinese companies Zhejiang Youngman Lotus Automobile and Pang Da Automobile, following their offer to buy Saab instead of committing to the original deal to invest in its parent company. according to reports.

    Youngman and Pang Da had in July signed a non-binding MoU to take a combined 53.9% stake in Swedish Automobile, but now say circumstances have changed, and they want to purchase shares in Saab.

    Swedish Automobile’s CEO Victor Muller said last week that the offer was unacceptable, stating that it would trigger every conceivable change of control clause and that would possibly mean the end of Saab, the reports added. He did not disclose the value of the offer.

    The termination of the agreements came after Pang Da and Youngman failed to confirm their commitment to the equity investments and to a second deal over bridge funding, though Swedish Automobile added that discussions between the parties were still ongoing.

    Swedish Automobile had at the end of September agreed to sell its Spyker Cars operation to American private equity firm North Street Capital, for US$44 million. North Street’s managing partner Alex Mascioli said last Friday that North Street had the capacity to take over Saab should it wish to do, adding that the brand was an undervalued asset that would survive. “I’m willing to do what I can with my resources for Saab,” he was quoted as saying.

    By the looks of it, SA’s future remains well in the air at the moment. The company has been struggling for months in its bid to pay suppliers and employees and resume production at Trollhattan.

     

  • Swedish Automobile to sell Spyker Cars for US$44 million

    In Cars, International News, Saab, Spyker / By / / 0 comments

    The journey continues, though on a different tack. Reports say that Swedish Automobile, the company that owns cash-strapped Saab and Spyker Cars, has announced its intent to sell off Spyker to an American private equity firm called North Street Capital for a sum of US$44 million.

    Swedish Automobile had early this year said it was going to let go of Spyker, but the name mentioned then was CPP Global Holdings, owned by Russian businessman Vladimir Antonov. A MOU was signed between the two companies in February, but the deal, which was expected to go through, did not; an announcement was made in August saying it had been put on hold.

    The deal represents Swedish Automobile’s latest effort to raise capital to turn around Saab, though reports add that the latter may not see the money; proceeds from the sale are to be used to pay off a loan to Antonov. Though the company is being sold, Victor Muller, who is Swedish Automobile CEO, will remain as CEO of Spyker as well. As for the troubled Saab, the journey to being saved continues, but it at least looks like all the time and effort doing so can now be focused on it.

     
 
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