Advertisement

Saab and Youngman to form joint venture to develop three new models: the 9-1, 9-6 and 9-7

July 20, 2011 at 2:35 pm By Anthony Lim Filed Under Cars, International News, Saab, Youngman

Saab, through its owner Swedish Automobile, has signed an agreement with Zhejiang Youngman to form a joint venture in Sweden to develop three Saab models. The company issued a statement which said that the 50:50 JV, called the New Product Joint Venture, will be responsible for coming out with three vehicles, these being the 9-1, 9-6 and 9-7.

Saab will be responsible for controlling and managing the design, the development and testing of the new vehicles, utilising its existing capabilities and know-how from Trollhättan, with Youngman pitching in with financial support.

The 9-1 is likely to be based on the 9-X BioHybrid, while the 9-6 will see the resurrection of a SUV project from six years ago that never saw the light – a Subaru B9-based prototype was built, and has now sits on display at the Saab Museum.

The venture is aiming to build the prestige of the Saab brand to an even larger group of customers in China and the US with the 9-6 and 9-7, while the entry level 9-1 is being targeted as a global offering. The agreement between Swedish Automobile and Youngman has yet to be approved by regulators in Sweden and China, reports say.

9 Comments      

Saab-Youngman JV to build three new models in Sweden

July 8, 2011 at 11:01 am By Danny Tan Filed Under Cars, China, International News, Saab, Youngman

Swedish automaker Saab, part owned by Spyker, part owned by the Chinese, has signed an agreement with Zhejiang Youngman Passenger Car Group Co to form a joint venture in Sweden. This 50-50 JV will develop three “completely new” vehicles, namely the Saab 9-1, 9-6 and 9-7, according to Swedish Automobile, formerly known as Spyker Cars NV.

The arrangement will see Saab design, develop and test the new models while Youngman provides financial support. However, the agreement between both parties has yet to get the all important approval by regulators in Sweden and China.

Besides that, Swedish Automobile also said that the Memorandum of Understanding (MoU) signed last month with Youngman and Chinese auto distributor Pang Da Automobile is now a formal and legally binding agreement. Under the deal, Pang Da and Youngman will jointly invest 245 million euros in Swedish Automobile. The trio will set up joint ventures to manufacture and distribute Saabs in China.

As we know, Youngman’s current range in China includes rebadged Protons branded as “Lotus”. Now that they have Saab, will they still need the partnership with Proton?

25 Comments      


Saab’s adventure continues – Youngman joins the party

June 14, 2011 at 7:28 pm By Anthony Lim Filed Under Cars, China, International News, Saab, Youngman

The tempestuous affair that is Saab continues, with another Chinese suitor entering the picture to now make it a three-way deal. The Swedish automaker, owned by Spyker Cars, had been given a shot in the arm in May by Chinese car distributor Pang Da Automobile Trade, which pumped in money to restore Saab’s production and was looking to take a 24% equity stake in the latter.

Now, enter Zhejiang Youngman Lotus Automobile, better known as Youngman, which will form the third element in a joint venture deal. Spyker Cars said yesterday it had signed a non-binding memorandum of understanding for Youngman to take a 29.9% stake and Pang Da to take a 24% share in Saab, for a combined 2.3 billion yuan (US$355 million).

Under the agreement, Youngman will buy an equity stake in Saab for 1.3 billion yuan (US$200 million) and will take a 45% stake in the manufacturing JV, with Saab holding 45% and Pang Da the remaining 10%, according to reports. Youngman will hold a 33% stake in the distribution part of the JV, with Pang Da holding 34% and Saab 33%.

Meanwhile, Pang Da will be forking out 1.0 billion yuan (US$155 million) for its 24% equity stake in Spyker, up from the 605 million yuan (US$93.5 million) it was expected to deploy for its equity investment initially announced on May 16.

As has been the case, this deal hinges on approval from governmental agencies and third parties, involving both Chinese and Swedish governments as well as the European Investment Bank and Saab shareholder General Motors, the reports add. After all that has been happening in recent times, what with the likes of the scuppered Hawtai deal, all at Saab must be crossing their fingers that this one finally comes through.

6 Comments      

Saab gets another 15m euro cash injection from Pang Da

June 2, 2011 at 1:20 pm By Anthony Lim Filed Under Cars, International News, Saab, Spyker

Saab has obtained another cash injection from Pang Da, its new Chinese partner, according to reports. The Swedish automaker has received a further order for 630 cars, worth 15 million euros, on top of the 1,300 cars worth 30 million euros already ordered by the Chinese company in May.

The new order follows a visit by senior Pang Da representatives, headed by Chairman Pang Qinghua, to Trollhattan, where Saab’s factory is located. Pang Da is paying in advance for the order, with delivery of the vehicles slated to begin sometime in the third quarter.

The Chinese company has already provided Spyker Cars, which owns Saab, with an advance payment in exchange for Saab cars to be sold in China. It raised nearly US$1 billion in its initial public offering in April, and is looking at taking a 24% equity stake in Spyker at a cost of 65 million euros, for 4.19 euros per share as part of a 110 million euro deal, the reports add. Pang Da is waiting for regulatory approval at home.

5 Comments      

Kung Fu Panda saves the day! Chinese auto distributor Pang Da pumps 45m euros into Saab, buys stake in Spyker

May 17, 2011 at 5:35 pm By Danny Tan Filed Under Cars, China, International News, Saab, Spyker

Cash strapped Saab has a new saviour, just a few days after the deal with Chinese automaker Hawtai fell through. The Swedish brand’s owner, Spyker, has signed a memorandum of understanding (MoU) with Pang Da Automobile Trade Co Ltd, China’s largest publicly traded automobile distributor with over 1,100 dealerships nationwide.

The MoU includes a strategic alliance consisting of a 50/50 distribution joint venture and a manufacturing joint venture (MJV) for Saab vehicles as well as for an MJV-owned brand (a so-called ‘child brand’) in China. Saab will have up to 50% stake in the MJV, with Pang Da and another manufacturing partner owning the remaining shares.


In return, Saab gets what it needs the most for now – cash. Pang Da will pay 30 million euro for the purchase of Saab vehicles and is expected to make an additional 15 million euro payment for the purchase of more Saab vehicles within 30 days, subject to certain circumstances. The 30 million euro initial payment will give Saab the ability to pay its suppliers and the liquidity required to restart production.

In addition, the Chinese company will take an equity stake in Saab’s parent Spyker for a total amount of 65 million euro at 4.19 per share. This equates to 24% of Spyker, and Pang Da will have the right to nominate a member of the Supervisory Board of Spyker and/or the board of Saab.

Isn’t that quite a bit of purchasing power for a car dealer? Well, Pang Da raised nearly 6.5 billion yuan (over 703 million euro) in its initial public offering last month, so it definitely has the means.

19 Comments      

Saab-Hawtai deal falls through – Great Wall enters picture

May 13, 2011 at 10:14 am By Anthony Lim Filed Under Cars, International News, Saab

It looks like the reported deal between Hawtai Motors and Saab, which would have seen the Chinese automaker taking a 29.9% equity stake in Saab parent company Spyker Cars for US$172 million, has fallen through.

Apparently, Hawtai was not able to obtain all the necessary consents for the deal, which reports indicate may be because Beijing views the company as too small and too weak to manage the risks.

The reports add that Saab and Hawtai are continuing to work on a deal, but Saab added in a statement that the talks are no longer exclusive. Meanwhile, Chinese SUV maker Great Wall is also in talks with Spyker over a potential tie-up with the Swedish concern, which needs funds to pay overdue bills and resume long-term production.

2 Comments      

Saab rescued, again – Hawtai buys into Spyker Cars

May 3, 2011 at 6:00 pm By Anthony Lim Filed Under Cars, International News, Saab

A couple of days ago, we reported that Saab was likely to be rescued by investors. Well, the deal is done. The Swedish automaker – and its Dutch owner, Spyker Cars – has confirmed a partnership deal with Hawtai Motor Group, which will see Saab getting funding worth 150 million Euro (US$222 million) and the Chinese automaker taking a 29.9% stake in Spyker.

The announcement follows the 30 million Euro short-term cash injection secured by Saab to restart production, which had been halted since the beginning of April due to a dispute with suppliers over the company’s ability to pay its bills.

Spyker said in a press release that the deal includes financing in the form of subscription agreements to the amount of 150 million Euros as well as a strategic alliance for China including joint ventures in manufacturing, technology and distribution.

“With Hawtai’s clean diesel engine technologies and production capacity, and its ambitious development programs, we have found the right partner to develop the Saab business and build a solid relationship,” Spyker’s CEO Victor Muller said in a statement.

Hawtai, which was founded in 2000, is a Shandong-based company with two production facilities located in Ordos, Inner Mongolia and Rongcheng in Shandong. The company, which formerly had a JV partnership with Hyundai, currently has an annual production capacity of 350,000 vehicles, 300,000 clean diesel engines and 450,000 automatic transmissions.

11 Comments      

Saab to be rescued by Chinese and Russian investors?

May 1, 2011 at 6:54 pm By Paul Tan Filed Under Cars, Saab

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.

17 Comments      

BAIC rolls out T60 concept from old Saab platform

April 26, 2011 at 11:32 am By Danny Tan Filed Under Cars, China, International News, Saab

Back in December 2009, China’s Beijing Auto (BAIC) purchased intellectual property for Saab’s 9-5 and 9-3 sedans from General Motors, who no longer wanted the Swedish marque. The $200 million purchase will bear its first fruit in the form of an own brand sedan by the end of this year, it was revealed earlier.

At the Shanghai show, BAIC wheeled out this T60 concept car, which shows extensively reworked bodywork over the ageing Saab platform. The T60, which looks very modern, resembles different models from different angles, so it’s a good car to play “spot the inspiration” with.

This shortcut to a new car will go on sale early next year in China. Some might dismiss it as new skin over old bones, but the previous gen Saab 9-5 was sold in Europe only until recently and is Euro NCAP proven – so this should be a safer car than many homegrown models.

15 Comments      

Cash strapped Saab eyeing to buy current MINI platform

April 15, 2011 at 11:47 am By Danny Tan Filed Under BMW, Cars, International News, Saab

Saab’s production workers are now at home, not because it’s a public holiday, but because the carmaker has stopped production “until further notice” amid a row with suppliers over unpaid bills. Rescued by Spyker at the death last January, Saab is not in very good financial health. The fact that it didn’t meet sales targets last year didn’t help.

Sweden’s National Debt Office received yesterday an application from Saab on changes to its financing aimed to save the cash-strapped company. The NDO has a say in Saab’s finances because it guaranteed a European Investment Bank loan to Saab.

A likely saviour is Russian businessman Vladimir Antonov (pic), who last month said he was ready to invest 50 million euros in Saab in exchange for a 30% stake. At the time of Saab’s sale, GM didn’t let Antonov take a stake over concerns that its intellectual property rights will fall into the wrong hands.

Cashflow problems aside, Saab still has ambitions. Reports say that it’s lining up to buy the current MINI platform from BMW, which Munich will retire in late 2012 when an all-new F56 MINI is launched. This is after securing a deal to use the MINI’s 1.6L turbo engine. These are all for Saab’s upcoming “9-1″ small car, which from the looks of it, will be a “MINI with different styling”.

5 Comments