SAAB Abandoned By GM, Files Bankruptcy.

[vztrt]

http://www.caradvice.com.au/118974/s...hinas-pang-da/

Saab secures deal with China’s Pang Da
By Brett Davis | May 17th, 2011

Last week, Chinese automotive manufacturer Hawtai pulled the pin on a 150 million euro deal which would have rescued Saab from financial hardship, and allowed it to continue production at its Trolhattan plant in Sweden. Fortunately, Pang Da Automobile Trade has just signed a 45 million euro deal with Saab that should shore up its future.

Pang Da is China’s largest vehicle distributor and has announced it will invest 45 million euro (AU$60 million) into Saab Cars, and plans to take a 24 percent stake in Spyker Cars (owner of Saab) with a further 65 million euro deal in the near future. Spyker boss, Victor Muller, recently said,

“It still requires a lot of work before this 65 million is in our bank account, to get the permits. When we have the 65 million euros, it will be enough for the mid-term, or a year.”

The deal is said to be more secure than the previous attempts with Hawtai though as Pang Da is a distributor rather than a manufacturer. Reports say approval of the investment is much more likely to go ahead.
If all goes to plan, the deal will supply enough funds for medium-term relief which is expected to help kick-start Saab production at its plant in Trolhattan, Sweden. The plant has been out of action for more than a month.
We certainly hope the deal sticks this time.

[vztrt]

http://www.autoblog.com/2011/05/16/s...hinas-pang-da/

Report: Saab announces memorandum of understanding with China's Pang Da

by Chris Shunk (RSS feed) on May 16th 2011 at 10:32AM

To say that Saab has struggled of late would be a gross understatement. The automaker has had to fight for loans, production was halted twice due to failure to pay suppliers, and an agreement with China's Hawtai Motors was scrapped after all parties failed to agree to the terms. Then there was the supposed agreement with Great Wall Motor, which the Chinese automaker flat-out denied. What a mess.

But while Saab has certainly struggled, it would be wrong to say that the Swedish automaker isn't trying. A Saab press release shows that the Swedish automaker has found another Chinese dance partner, and this time, a "Memorandum of Understanding" has been signed between Pang Da Automobile Trade Co. and the Swedish automaker.

Pang Da, the largest publicly traded automotive distribution chain in China, has agreed to purchase $43 million worth of Saab vehicles, and another $21 million 30 days later. In addition, Pang Da will pay $92 million for a 24 percent stake in Spyker. For Saab, the deal represents a 50 percent ownership in a distribution joint venture to sell Saab products. A separate 50 percent stake in a manufacturing joint venture has also been agreed upon, though the manufacturing partner has yet to be named.

Meanwhile, Automotive News reports that a long-term deal with a Chinese automaker could result in a majority stake in Saab. AN, which cites a report in the Swedish business daily Dragens Industri, quotes an unnamed source as saying, "It is not a problem if a Chinese partner wants a direct majority in Saab Automobile."

Since the cash situation at Saab appears to be changing almost daily, it's difficult to see how this will end. But for the short term, the Pang Da deal should help Saab quite a bit, provided the deal goes through as planned. Hit the jump to read Saab's press release.

PRESS RELEASE

Zeewolde, The Netherlands, 16 May 2011 - Spyker Cars N.V. (Spyker) announces today that Spyker and Saab Automobile AB (Saab Automobile) signed a Memorandum of Understanding (MoU) with Pang Da Automobile Trade Co., Ltd (Pang Da), China's largest publicly traded automobile distributor with over 1100 dealerships nationwide. The MoU includes a strategic alliance consisting of a 50/50 distribution joint venture and a manufacturing joint venture (MJV) for Saab branded vehicles as well as for an MJV-owned brand (the so-called 'child brand') in China. Saab Automobile will have up to 50 percent in the MJV, with Pang Da and a to-be-selected manufacturing partner owning the remaining shares.

Pang Da shall make a EUR 30 million payment for the purchase of Saab vehicles and is expected to make an additional EUR 15 million for the purchase of more Saab vehicles within 30 days subject to certain circumstances. Additionally, Pang Da will take an equity stake in Spyker for a total amount of EUR 65 million at EUR 4.19 per share (the weighted average of the ten last trading days), representing 24 percent of Spyker on a fully diluted basis, and will have the right to nominate a member of the Supervisory Board of Spyker and /or the Board of Saab Automobile.

Spyker, Saab Automobile and Pang Da signed an MoU on the formation of a joint ventures with respect to distribution and manufacturing in the Greater China market, subject to definitive transaction documentation and certain regulatory approvals.

Pursuant to the MoU, Pang Da will transfer EUR 30 million to Saab Automobile as payment for the purchase of Saab vehicles and an additional EUR 15 million within 30 days for the purchase of additional vehicles depending on certain circumstances.

Pang Da will take an equity participation in Spyker for a total amount of EUR 65 million at EUR 4.19 per share representing up to 24 percent of Spyker's outstanding share capital on a fully diluted basis.

The MoU between Spyker, Saab Automobile and Pang Da contains the principles on which the parties will establish a 50/50 joint venture for the distribution of Saab-branded vehicles in China.

The EUR 65 million share subscription by Pang Da will secure Saab Automobile's medium term funding.

Some of the transactions following the MoU are subject to agreement on definitive transaction documents and certain conditions, which include consents from certain Chinese governmental agencies, the European Investment Bank, GM and the Swedish National Debt Office.

With the receipt of Pang Da's EUR 30 million initial payment, Saab Automobile aims to come to an agreement on payment and delivery terms with its suppliers as it secured the liquidity that is required to restart production as soon as possible. In order to improve lead times to customers and dealers on existing and future orders, Saab Automobile will work together with its suppliers to minimize any impact from the recent production stop.

Victor Muller, CEO of Spyker and Saab Automobile said:
"Both parties are confident that this partnership allows Saab Automobile and Pang Da to create a strong business, initially in the distribution and subsequently in the manufacturing of Saab vehicles in China.

"Pang Da is a forward-looking, profitable and well-capitalized public company that, as the single largest automobile distributor in China, sees enormous potential for our brand in their home market. We will work hard to finalize the relevant agreements and firmly establish Saab in the world's fastest growing car market. Pang Da taking a substantial equity stake in Spyker underlines their confidence in our plans for the future and China in particular."

Mr. PANG Qinghua, CEO of Pang Da, said:
"This partnership allows us not only to distribute Saab, the iconic European premium brand, in China but also to set up a manufacturing joint venture which will further enhance the competitive position of the Saab brand in China.

"With the new products Saab has launched since it became an independent car manufacturer early last year, such as the all new Saab 9-5 and the Saab 9-4X which have been widely acclaimed, and not in the least the upcoming successor to the current Saab 9-3, we believe the timing is perfect for Saab to enter the Chinese market. Our size, financial strength and competence in addition to our ability to move fast will be crucial to Saab's success in China.

"Having just gone public ourselves three weeks ago, we are delighted to have the opportunity to become a substantial shareholder in Spyker, Saab's parent. We very much look forward to collaborating with Saab's management to successfully enter our promising home market."

[vztrt]

http://www.autoblog.com/2011/05/23/s...g-da-talks-wi/

Official: Spyker to be renamed Swedish Automobile N.V. as Pang Da talks with Chinese gov't.

by Jeff Glucker (RSS feed) on May 23rd 2011 at 1:29PM

Spyker is on a Chinese money hunt, and it appears the automaker may have found a partner willing to pony up the cash. Pang Da, a Chinese automobile distribution company, had recently entered into a memorandum of understanding with Spyker. Now, Spyker is set to rename itself Swedish Automobile N.V., and the Saab-owner believes Chinese authorities will give the green light for this deal to proceed.

According to Saab CEO Victor Muller, a very important portion of the deal has already gone through; a cash infusion of €30 million ($42M USD). Muller states that "Pang Da's advance payment and sales of imported Saab cars are not subject to approval from the NDRC. The first advance payment of EUR 30 million was received last Tuesday."

Bloomberg reports that the rest of the deal may not move forward so easily. According to analysts in China, the country's government is unlikely to allow Pang Da's purchase of a stake in Swedish Automobile N.V. because the nation is working to consolidate its auto industry, not expand it.

If approved, however, Pang Da will spend $91 million and receive a 23 percent share of the automaker's business. Despite the negative view of Chinese analysts, Pang Da says it remains confident the transaction will be approved.

PRESS RELEASE
PANG DA ENTERS PROCEDURE DISCUSSIONS WITH CHINESE AUTHORITIES TO OBTAIN NECESSARY REGULATORY APPROVALS FOR INVESTMENT IN SPYKER CARS AND SAAB AUTOMOBILE

Zeewolde, The Netherlands, 23 May 2011 - Spyker Cars N.V. (Spyker Cars) and Saab Automobile AB (Saab Automobile) confirm that Pang Da Automobile (Pang Da) has entered procedure discussions with Chinese authorities, including the National Development and Reform Commission (NDRC), to obtain regulatory approvals for the investment in Spyker Cars and Saab Automobile.

Spyker Cars is to be renamed Swedish Automobile N.V. shortly. The general meeting of shareholders has decided so.

Victor Muller, CEO of Spyker Cars and Saab Automobile, said:

"Based on our discussions with Pang Da we are confident that Pang Da will get the regulatory approvals needed to formalize the deal. I am very much looking forward to creating a strong business with Pang Da, initially in the distribution and subsequently in the manufacturing of Saab vehicles in China. What needs to be pointed out is that Pang Da's advance payment and sales of imported Saab cars are not subject to approval from the NDRC. The first advance payment of EUR 30 million was received last Tuesday."

[vztrt]

http://www.autoblog.com/2011/05/27/s...ek-suspension/

Official: Saab to restart production after six-week suspension *UPDATE

by Jeremy Korzeniewski (RSS feed) on May 27th 2011 at 8:30AM

Six weeks have passed since Saab was forced to halt production of its 9-3 and 9-5 models in Sweden due to a lack of funds needed to pay suppliers. The automaker had hoped to get production back up and running after it agreed to a deal with Chinese automaker Hawtai Motors, but that plan was scrapped after the agreement failed to materialize.

But now there's a new Chinese suitor in town. A Memorandum of Understanding has been signed between Pang Da Automobile Trade Co. and Saab, and a report from Reuters quotes spokeswoman Gunilla Gustavs as saying that production ought to restart today (Friday, May 27, 2011).

We've heard this one before, and it has so far failed to materialize. That said, Pang Da has already forwarded Saab 30 million euros to get production restarted, and Pangda Chief Executive Pang Qinghua would like to see the lines humming along in time for his scheduled visit to Trollhättan that same day.

In other Saab news, Sweden's enterprise minister Maud Olofsson met with Russian investor Vladimir Antonov to discuss his interest in continued financial backing for the struggling automaker, which is hoping to receive approval for a 29.1-million-euro draw-down from its open request to the European Investment Bank.

Only time will tell if this Saab story (yes, pun intended... sorry) has a happy ending.


*UPDATE: Saab has issued a press release indicating that production has indeed restarted in Trollhättan. The official text is after the jump.

PRESS RELEASE

Source: Saab May 27, 2011
Saab Automobile Restarts Production

* First cars roll off Trollhättan production line since April 6
* Order bank of over 6,500 cars for Trollhättan factory, over 8,000 cars worldwide

Trollhättan, Sweden: Saab Automobile today restarted production at its production facility in Trollhättan. A first batch of around 100 cars is planned for this first day of production since April 6 and Saab Automobile plans to increase the daily production rate in the coming weeks in parallel with the full re-establishment of the supply chain.

Attending the restart of production were Victor Muller, CEO and Chairman of Saab Automobile, Mr. Pang Qinghua, Chairman and CEO of Pang Da Automobile, and Gunnar Brunius, Saab Automobile´s Vice President Purchasing & Manufacturing. The first cars to roll off the assembly line were a silver Saab 9-5 Aero XWD and an orange Saab 9-3 Convertible Independence Edition.

With production restarted, Saab Automobile will now focus on building and delivering the thousands of cars ordered by customers around the globe. As the assembly line was fired up again, the total number of outstanding orders from markets worldwide for the Trollhättan factory amounted to over 6,500 cars. The total order bank, including around 1,600 Saab 9-4X orders, amounts to over 8,100 cars. This number includes the almost 1,300 cars that were ordered by Pang Da Automobile and for which it paid EUR 30 million up front.

Watching the first car roll off the line, Victor Muller said: "This is a great day for our company and it is great to see the plant running again. We have gone through a rough patch in recent weeks, but Saab is back in action again. I would like to express my deep gratitude to our fantastic suppliers who have worked so hard with us to make this happen, and to our loyal employees who have constantly stood by our side."

"We will work hard in the coming period to regain confidence and show our ability to become a successful car maker. We are fortunate that we are in the middle of the largest-ever product offensive in the company´s history. Last year we launched the all-new Saab 9-5 Sedan, while the 9-3 Griffin range went on sale earlier this year. The new Saab 9-4X, our first crossover, has enjoyed raving reviews from motoring media and we already sold all 9-4X cars for model year 2011. After the summer, we start delivering the much-awaited Saab 9-5 SportCombi to customers."

Gunnar Brunius added: "I am very happy to see our plant in operation again. This is a highly important moment for everyone at Saab Automobile, especially for our loyal people here in the plant who have eagerly waited for this day. Given the complexity of re-establishing our supply chain there will most likely be some hiccups during this start-up phase, but we will work hard together with our suppliers to minimize any disruptions to production in the coming weeks."

[Buntz]

If the 9-5 was RWD... I might even find it desirable.

[janddbone]

Don't forget you can get AWD...

[Buntz]

Originally Posted by mr_br_johnstone

Don't forget you can get AWD...

You mean a transverse on demand AWD system?

No thanks.

[Bossxr8]

Hate the flying goose styling. It looked terrible in the 80's, time has not improved on that.

[nipper575]

Yep, even with Giorgetto Giugiaro designing the 9000, I have never been a fan of the way they look. That's coming from someone who grew up with the folks having owned a 9000 Turbo, 9-5 Aero and a 9000 Aero.

Not ugly cars by any means, but something's not quite right.

[vztrt]

http://www.autoblog.com/2011/06/02/s...ets-big-order/

Report: Spyker CFO steps down, Saab gets big order

by Zach Bowman (RSS feed) on Jun 2nd 2011 at 11:03AM

Spyker has announced that Hans Go will step down as the company's Chief Financial Officer on July 1. Automotive News reports that since the sports car manufacturer's operations are being sold to Vladimir Antonov, the Spyker group will now focus solely on Saab. Rob Schuyt is currently acting CFO for the company, but the Swedish automaker is expected announce a permanent CFO later this year. Schuyt is also serving as the statutory director of Saab as well. Meanwhile, things are looking up for the embattled carmaker, as its new Chinese partner Pang Da placed an order for a whopping 630 vehicles.

All told, that deal will be worth around €15 million, or $21.69 million at current conversion rates. According to Automotive News, Pang Da eventually wants to snag a 24 percent equity stake in Saab for a total investment of around €65 million ($94M). That stake is part of a greater deal worth around €110 million ($160M).
[Source: Automotive News – sub. req. | Images: Bjorn Larsson Rossvall/AFP/Getty]

[vztrt]

http://www.autoblog.com/2011/06/07/s...ble-this-week/

Report: Saab production stoppages still possible this week

by Zach Bowman (RSS feed) on Jun 7th 2011 at 6:01PM

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.
[Source: Reuters]

[vztrt]

http://www.autoblog.com/2011/06/23/s...mployee-wages/

Saab unable to obtain short-term funding, pay employee wages

by Zach Bowman (RSS feed) on Jun 23rd 2011 at 10:29AM

Saab hasn't been able to secure the short-term funding it needs. As a result, the Swedish automaker has been unable to pay its employees their wages, according to a statement released by the company.

Saab says that it is currently investigating ways to secure the funds necessary to continue operations, including selling all of its assets and leasing them back. That option had been discussed in the past but fell to the wayside as discussions with various Chinese partners ramped up. Even with that option back on the table, Saab says that there's no guarantee that the company will be able to secure the necessary funding.

If that happens, Saab could go permanently dark.

The automaker has secured mid-term financing thanks to a deal with Chinese Distributor Pang Da, but if the company can't keep its workers paid right now, that may not mean too much. Hit the jump to check out the brief press release.

PRESS RELEASE

Swedish Automobile Press release

Zeewolde, The Netherlands, 23 June 2011 - Swedish Automobile N.V. (Swedish Automobile, formerly Spyker Cars N.V.) announces that Saab Automobile AB (Saab Automobile) will be unable to pay the wages to employees as it has not yet obtained the necessary short-term funding. Swedish Automobile and Saab Automobile are in discussions with various parties to obtain short-term funding, including via the sale and lease-back of the real estate of Saab that was announced previously, and with their financiers in connection with current financing arrangements. These discussions are ongoing. There can however be no assurance that these discussions will be successful or that the necessary funding will be obtained.

Saab Automobile has ongoing negotiations with suppliers in reaching agreement on the terms of payments in order to resume an orderly inflow of parts and components.

Swedish Automobile will update the market of any new developments.

[Source: Saab | Images: Copyright 2011 Chris Paukert / AOL]

[RASER]

Originally Posted by Tles

wow, changing world. Sayonara Saab. Next I guess FIAT will want to 'technical Partner' with SAAB so they can offer small Saabs and big Fiats.

FIAT threw them a lifeline, they refused.

They can sink into history, no loss, or China can have them.

Bit like Jag with FORD, GM never made a dime from them.

[Adamz Ghia]

For me, Saab is no loss. I have never understood the point of them, I have driven them and hated the experience, they're not a premium car, yet not an el cheapo, they don't really fit in anywhere. The new 9-5 does absolutely nothing for me and the inside of it looks horrible.

Sucks for the workers, but let the name go...

Just my 2c...

[vztrt]

http://www.autoblog.com/2011/06/27/s...property-offe/

Report: Saab scores €13M order, Swedish real estate firm's property offer in the wings

by Zach Bowman (RSS feed) on Jun 27th 2011 at 10:31AM

Saab may have finally found a willing partner to buy the company's assets and lease them back to the automaker. According to Reuters, the Swedish real estate firm Hemfosa has agreed to make the move, but the complex financial situation surrounding Saab may make the deal difficult. The European Investment Bank must first sign off on the plan, and both Pangda and Youngman – two Chinese partners in the Saab dance – are also required to pay some money. Saab needs the deal to go through in order to secure short-term funding so that the manufacturer can continue to pay its employees. Right now, that's not happening.

Still, Hemfosa isn't entirely sold on picking up the Saab holdings. The properties are more valuable with the automaker in place and turning out vehicles, but since the company's future is anything but certain, there's more than a little risk involved in the deal. Reuters reports that the purchase and lease agreement is valued at around $46 million at current conversion rates.

Meanwhile, another unnamed Chinese buyer purchased a total of 582 Saab vehicles, offering an additional short-term lifeline worth €13 million, or $18.47 million USD. Even so, that's only enough cash to pay the company's workers, not its suppliers. The news wasn't enough to stop the company's union members from resigning from the automaker's board of directors.
[Source: Reuters, The Wall Street Journal]

[vztrt]

http://www.caradvice.com.au/124955/s...million-order/.

Saab able to pay some debts courtesy of EUR13 million order
By Karl Peskett | June 28th, 2011

Saab Automobile has received an order of 582 vehicles from a Chinese company with a value of EUR13 million, which will enable it to pay off some of its debts.

Last week, Saab announced that it was unable to pay its workers and some suppliers, however with the money given to the company up front, Saab will be able to pay staff and make partial payments to some of its debtors.

Short-term funding is still being discussed, while the sale and lease-back of the real estate on which Saab Automobile sits is one option to try and relieve some of the debt.

Victor Muller, CEO of Saab Automobile and Swedish Automobile said the following in a statement released today.

“I am pleased to announce this agreement, as it secures part of the necessary short-term funding for Saab Automobile and allows us to pay our employees’ wages before the end of this month. The management of Saab Automobile is deeply committed to the company and its employees. I respect the decision of the union members to resign from the board of Saab Automobile.

We very much regret the current cash shortage which is causing undeserved hardship to all and we are working relentlessly to resolve the current situation. We hope to secure additional short-term funding, necessary to reach agreement with all of our suppliers to restart production, soon.

Mr. Vladimir Antonov’s interest in participating as an investor/financier in Swedish Automobile remains unwavering, but he is still awaiting a decision on his clearance from parties at interest following the Swedish National Debt Office (NDO) recommendation to clear him over 8 weeks ago.

Once clearance has been obtained, Mr. Antonov can provide much needed financing and/or capital to Swedish Automobile/Saab Automobile at this critical time. We are pushing hard to obtain this vital clearance as soon as practically possible.”

[vztrt]

http://www.autoblog.com/2011/06/28/s...l-estate-deal/

Official: Saab reaches terms on real estate deal

by Zach Bowman (RSS feed) on Jun 28th 2011 at 11:45AM

It looks like Saab has managed to reach a deal with Hemfosa Fastigheter AB to secure short-term funding. The automaker has sold 50.1 percent of its Trollhättan properties to the Swedish real estate consortium for $39.98 million. Saab will then enter into a 15-year lease agreement in order to continue to use the properties. Right now, the deal encompasses around 5.2 million square feet of building space, though the consortium has the option to purchase more shares of the property until 30 days after closing. The deal has a ceiling of $47.12 million. Hit the jump for the press release.

PRESS RELEASE

SAAB AUTOMOBILE HAVE REACHED CONDITIONAL AGREEMENT FOR SALE AND LEASE BACK OF SAAB PROPERTY

Zeewolde, The Netherlands, 28 June 2011 - Swedish Automobile N.V. (Swedish Automobile) announces that Saab Automobile AB (Saab Automobile) have reached a conditional agreement with respect to a sale of 50.1% of the shares in Saab Automobile Property AB (Saab Property) with a transaction value of SEK 255 million (EUR 28 million).

A consortium of Swedish real estate investors, led by Hemfosa Fastigheter AB (the Consortium), will purchase 50.1% of the shares in Saab Property for a total consideration of SEK 255 million, reflecting an adjustment to the transaction price for a one year lease free period. The property consists of 483,000 m2 building space. The investors have the right to purchase additional shares to increase the amount to SEK 300 million (EUR 33 million) on the same terms within 30 days after closing.

Saab Automobile will enter into a lease agreement with Saab Property for a duration of 15 years.

As joint owners, the Consortium and Saab Automobile seek to further develop the property, including a refinancing of the property at a later date when commercially feasible. Saab Automobile is being advised by Catella Corporate Finance.

In order to enable Saab Automobile to sell the property, the Swedish National Debt Office (NDO), being the guarantor of the EUR 400 million loan of the European Investment Bank (EIB), is requested to release its pledge in the shares of Saab Property. If the NDO releases its pledge in the shares of Saab Property, the guarantee of the NDO in favour of the EIB will be reduced by EUR 120 million. As a result, Saab Automobile will draw up to a maximum of EUR 280 million under the existing EIB loan (of which EUR 216.9 million have currently been drawn). A further EUR 63.1 million will remain available to Saab Automobile under the EIB loan. Saab Automobile seeks final approval from the EIB, the NDO and the Swedish government to complete the transaction which it expects shortly.

Swedish Automobile and Saab Automobile continue their discussions with several parties to secure additional short-term funding to restart production. There can, however, be no assurance that these discussions will be successful or that additional short-term funding will be obtained.

Jens Engwall, CEO Hemfosa Fastigheter AB, said: "We are very pleased with the agreement with Saab Automobile. We will continue to add value for Saab Automobile in developing the property."
[Source: Saab]

[vztrt]

http://www.autoblog.com/2011/06/29/s...vestment-fund/

Official: Saab secures $36M bridge loan from Gemini Investment Fund

by Jonathon Ramsey (RSS feed) on Jun 29th 2011 at 4:01PM

During the U.S. launch of the 2012 9-4X, Saab CEO Victor Muller told us that he was good at raising money, and he is probably going further than he ever wished to prove his point. It was announced this morning that Swedish Automobile, parent company of Saab, secured a €25-million ($36M U.S.) bridge loan from Gemini Investment Fund. It is the second infusion from Gemini in as many months, and brings to €66M ($95M) the amount of money Saab has raised this week alone.

The latest life preserver allows Saab to pay its June wages. The production lines are still idle while Saab deals with suppliers, but it wants to start making cars again in two weeks. Saab is also waiting on regulatory approval for €245 million ($353M) from two Chinese partners, and hopes to access a drawdown of €29.1 million ($42M) from the European Investment Bank in hopes of manifesting a Rocky-like comeback.
[Source: Reuters via The Detroit News]

[vztrt]

http://www.autoblog.com/2011/07/07/e...s-saab-eyes-p/

EIB green-lights Swedish Automobile property sale as Saab eyes production restart

by Dan Roth (RSS feed) on Jul 7th 2011 at 2:01PM

Part of the Saab gambit for survival has been approved by the European Investment Bank. Saab's parent company, Swedish Automobile, has been requesting approval for a plan to sell part of the property that its factory sits on in Trollhättan to a group of real estate investors led by Hemfosa Fastigheter and then lease the land back. The transaction has been given final approval by not only the EIB, but also the Swedish government and the country's National Debt Office.

It's sure to be a sigh of relief for Saab, as the purchase of 50.1 percent of shares in Saab Property AB gives an infusion of 205 million Kronor (around $32.4M USD) which helps in the ongoing discussions with suppliers as Saab aims to restart production. Saab says it is going to take advantage of the traditional summer shutdown to get its house in order with suppliers and other short-term funding sources, and it aims to restart production by Tuesday, August 9. Check out more details in the official release after the jump.



PRESS RELEASE

SAAB AUTOMOBILE UPDATE ON PRODUCTION AND SALE AND LEASE BACK OF SAAB PROPERTY


Zeewolde, The Netherlands, 7 July 2011 - Swedish Automobile N.V. (SWAN) announces that Saab Automobile AB (Saab Automobile) obtained final approval from the EIB, the NDO and the Swedish government for the sale and lease back of the Saab property.

The consortium of Swedish real estate investors led by Hemfosa Fastigheter, and including among others, Brinova Fastigheter AB, PEAB and Weland Fastigheter will purchase 50.1% of the shares in Saab Property AB for a total consideration of SEK 255 million, reflecting an adjustment to the transaction price for a one year lease free period. Of the SEK 255 million consideration, SEK 205 million will be paid in cash on closing and the remaining SEK 50 million in the form of a sellable bond convertible into shares of the purchasing company. The investors have the right to increase their commitment to SEK 300 million within 30 days after closing on similar terms. The parties will proceed to closing the transaction today.

With this transaction SWAN and Saab Automobile will have raised about EUR 61 million in additional funding commitments over the past weeks. Saab Automobile continues its discussions with its suppliers on materials supply and commercial terms and is close to reaching agreements. SWAN and Saab Automobile continue their discussions with several parties to obtain further short-term funding to be able to restart and sustain production, including completion of a drawdown under the EIB loan facility.

Given the fact that some of Saab Automobile's suppliers require a longer lead time to resume adequate supplies and the delay as a result of the summer shutdown period at many of Saab Automobile's European suppliers, Saab Automobile plans to restart production by Tuesday August 9, provided that the above criteria are met.
[Source: Saab, Reuters | Images: Bjorn Larsson Rosvall/AP]

[vztrt]

http://www.autoblog.com/2011/07/21/s...st-9-as-hoped/

Saab says production will not resume August 9 as hoped
By Zach Bowman
Jul 21st 2011 2:29PM

It looks like Saab isn't going to resume vehicle production on August 9 as it previously stated. Talks are currently continuing with the automaker's supplier base and the company's new partners to secure additional short-term funding. Apparently, Saab is still waiting on the delivery of some parts necessary to start production, and as a result, manufacturing has been postponed until those pieces can be secured.

Currently, the automaker says that it has around 11,000 orders on hand, and that its executives are optimistic about being able to nail down all the necessary delivery plans to continue producing vehicles. At the earliest, that may now be as soon as August 29.

Saab has frantically worked to secure partners for long-, mid- and short-term funding, and the automaker has announced a rash of new plans as a result of its efforts. The most recent of those include the introduction of three new models in cooperation with Chinese companies Pang Da and Youngman. Click past the jump for the automaker's press release on the most recent delay.

PRESS RELEASE

SAAB AUTOMOBILE UPDATE ON PRODUCTION

Zeewolde, The Netherlands, 21 July 2011 - Swedish Automobile N.V. (Swan) announces that Saab Automobile AB (Saab Automobile) continues discussions with its supplier base on material supply and delivery terms in order to be able to resume production at its Trollhättan plant. Swan and Saab Automobile continue their discussions with parties to obtain further short-term funding to be able to restart and sustain production. As delivery of all parts needed to secure a production start is not yet agreed production will not resume on August 9 as intended and will be postponed until a full commitment on delivery plans can be secured.

Gunnar Brunius, Vice President of Production and Purchasing said: "I am positive about the progress we made on the payment terms with our suppliers and it is good to see that we all want to make it work. What we need now is a full commitment on supply of parts into our factory to be able to restart production and secure a stable manufacturing operation. We are now working hard with our suppliers to nail down these plans, commit to a delivery schedule and start building the close to 11,000 cars that we currently have in our order books. The industry-wide summer break at our suppliers caused certain key suppliers not to be able to supply us in time. Saab Automobile hopes to restart production earliest in week 35 provided that it is able to commit to a delivery schedule with its suppliers."

[vztrt]

Saab’s travails drag on

http://www.goauto.com.au/mellor/mell...2578D8007FDA4E

Suppliers move on Saab debts as Swedish company looks to its future in China

26 July 2011

By RON HAMMERTON

SAAB Automobile is pressing ahead with plans to make cars in China, even as eight Scandinavian suppliers enlist Sweden’s Debt Enforcement Agency to collect unpaid bills from the troubled car-maker whose four-month-long production shut-down is set now to roll on to at least the end of August.

Cash-strapped Saab has blamed the latest production delay at its Trollhattan plant on the industry-wide summer break, saying certain key parts-makers could not supply in time for Saab to resume production on August 9 as previously scheduled.

But restless suppliers seem far from happy, with one Swedish tool-maker, SwePart, taking action last week to have a Saab subsidiary declared bankrupt over unpaid debts.

Although Saab said that action had been resolved, Bloomberg reports eight other suppliers have now formally asked the Debt Enforcement Agency to collect debts owed to them.

Bloomberg quotes agency case worker Christina Lindberg as saying: “We will start the collection process in a few days.”

A total of 104 debts have been registered against Saab with the agency, with some companies filing more than one debt.

Production at Trollhattan plant stalled in April as key parts-makers began to withhold parts due to unpaid bills.

Announcing an extension to the production hiatus, Saab Automobile vice president of production and purchasing Gunnar Brunius said Saab needed a full commitment on supply of parts into its factory to be able to restart production and secure a stable manufacturing operation.

“We are now working hard with our suppliers to nail down these plans, commit to a delivery schedule and start building the close to 11,000 cars that we currently have in our order books,” he said.

“The industry-wide summer break at our suppliers caused certain key suppliers not to be able to supply us in time.

“Saab Automobile hopes to restart production earliest in week 35 provided that it is able to commit to a delivery schedule with its suppliers.”

While Saab is fighting for its life in Sweden, it is continuing to make plans to enter the Chinese market.

Media reports from the world’s biggest motor market suggest the city of Tianjin – south-east of Beijing – is the front runner for the joint venture plant to be established by Saab and its new part owners Zhejiang Youngman Lotus Automobile Co Ltd and Pang Da – one of China’s biggest dealer groups.

China Car Times reports a factory capable of building 150,000 cars a year is being planned for China, but is at least two years away. Media reports say the decision on the plant’s location might be made by next month.

Tainjin is home to a new Great Wall Motors factory and a major automotive parts and car import hub.

In the United States, the company is continuing to roll out its new 9-4X SUV, giving it at least some showroom action.

Made in Mexico by former Saab owner General Motors, the 9-4X is the only Saab vehicle unaffected by the Saab troubles, at least for now.

The flow of vehicles will provide at least some cash-flow for Saab, which recently sold its property to a consortium of Swedish investors to raise 255 Swedish krona ($A37 million).

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http://www.autoblog.com/2011/07/26/s...-takover-cant/

Saab working to replace EIB loan to speed Antonov takover, can't pay wages
By Jeff Glucker
Jul 26th 2011 4:01PM

Keeping your staff happy is key to running a successful company. One of the main ways to do that is to pay them, which is an area in which Saab is once again experiencing a bit of trouble. Specifically, Saab cannot pay white-collar employees because committed funds have not yet been fully recovered by investors. The automaker's suppliers are looking to get paid as well, but there's just no money to do so at the moment.

According to Bloomberg and Sweden's The Local, Saab suppliers are seeking help from a collections agency. In total, 104 debts have been registered with the group teaming up to try and pry some money back from Saab. Meanwhile, the automaker is looking to secure a new loan to replace the current $346.6 million lent out by the European Investment Bank. Once in place, Saab would be ready to have Russian entrepreneur Vladimir Antonov step in and secure a 29.5 percent owner's share of the company.

Will Mr. Antonov serve as a saving grace for the Swedish automaker? We don't know, but we're certain the company needs all the help it can get at this point.

PRESS RELEASE
Zeewolde, The Netherlands, 26 July 2011 - Swedish Automobile N.V. (Swan) announces that Saab Automobile AB (Saab Automobile) has delayed payment of the wages to its white-collar employees as some of the funds that were committed by investors were not paid in time to effect such salary payments. Saab Automobile is taking all necessary actions to collect these funds and continues discussions with various parties to obtain additional short-term funding so that the payments can be made.

[Chilliman]

This is painful. If SAAB was a horse, it would have been shot by now!

[Resurrection]

That is what 20 years of GM mismanagment does to a company.

[RASER]

Originally Posted by Resurrection

That is what 20 years of GM mismanagment does to a company.

SAAB was screwed b4 GM got suckered into buying it, gut feeling GM are still partying about getting rid of it

[vztrt]

http://www.caradvice.com.au/131164/s...p-pay-workers/

Saab announces share issue to help pay workers
By Brett Davis | August 4th, 2011

Saab is still clinging onto its last threads as it announces a share issue in a bid to help pull itself out of bankruptcy and pay a number of unpaid employees.

Swedish Automoible, the owner of Saab, says GEM Global Yield Fund Ltd. will purchase around five million shares in the company, which will see Saab hand over a 17 per cent stake. This is expected to raise around 6.9 million euro ($9.2 million) for the Chinese-owned Swedish company.

According to reports, the announcement of more shares on the market isn’t really going to give Saab the time it needs. Analyst at Theodoor Gilissen, Tom Muller, said in a recent Automotive News report the share offer isn’t likely to help Saab’s situation all that much.

“Let’s assume they get around 6.5 million euros from this sale looking at where the share price is. They need at least 50 million euros [$66.9 million] to pay suppliers and get things started again. They have much more to do.”

Last week, Saab announced it could not pay a number of its white-collar workers due to a lack of commitment from would-be investors and a lack of funds due to demands to pay parts suppliers. Yesterday, the company announced it expected to be able to pay its workers sometime this week. Swedish Automobile also announced in a recent statement,

“Swedish Automobile and Saab Automobile continue their discussions with parties to obtain further short-term funding to be able to restart and sustain production.”

We’ll continue to keep you updated until hopefully, Saab is finally secured for the future. Feel free to give us your thoughts in the comments section below.

[vztrt]

http://www.autoblog.com/2011/08/03/s...-workers-soon/

Saab finds another investor, hopes to pay workers soon
By Zach Bowman
Aug 3rd 2011 2:29PM

The Saab saga continues. According to Reuters, the Swedish automaker has announced that the company is issuing more shares in an attempt to drum up funds to pay its white-collar workers. GEM Global Yield Fund, an investment company, has committed to purchasing around five million of the new shares, giving it a 17 percent stake in Saab. Even so, most analysts predict the move will only raise around €6.9 million (around $10M U.S.) when the automaker needs at least €50 million ($71.5M) in order to be able to pay its suppliers and fire up its production lines once again.

Reuters reminds us that that just last month, Saab managed to evade having to claim bankruptcy by settling with a supplier. Unfortunately, the company then made it clear that it couldn't pay its employees because investments from its foreign partners hadn't materialized in time. Saab says that it hopes to use the new funds from GEM to finally pay the automaker's white collar workers.

News Source: Reuters

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http://www.autoblog.com/2011/08/17/s...e-saab-assets/

Swedish debt authority poised to seize Saab assets
By Jeremy Korzeniewski RSS feed
Aug 17th 2011 6:30PM

If things don't rapidly start falling in Saab's favor, it's seeming more and more likely that the Swedish automaker may be at the tail end of its ninth life. The Swedish Enforcement Agency has reportedly contacted various banks holding assets for the troubled company, informing them that they may legally seize those assets in an effort to pay back roughly $625,000 owed to Saab's unpaid suppliers.

That might not seem like a lot of money, but that's only the sum that suppliers have requested the Swedish debt authority collect on their behalf that is immediately outstanding. The actual figure that Saab owes suppliers and employees is significantly higher.

As always, Saab's response is that it is working to secure further financing, but the automaker's fortunes seem to be getting more and more bleak with every passing day.

News Source: Reuters

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http://www.autoblog.com/2011/08/18/s...at-a-bad-time/

Saab board's retroactive pay raise comes at a bad time
By Jeff Glucker RSS feed
Aug 18th 2011 6:27PM

Saab, which is currently on life support as money issues continue to pile up, is reportedly about to give its board members a bump in pay. Those aforementioned issues – the inability to pay suppliers and workers, the looming threat of bankruptcy – make the retroactive pay raises received by the Swedish Automobile N.V. (SWAN) board of directors seem just a tad poorly timed.

These raises may have been planned well in advance, as Saab PR is quick to point out. That doesn't change the fact that the automaker needs financial help, yet has chosen to hand out more of the very thing it needs most right now to those at the very tippy top of the food chain.

News Source: The Truth About Cars

[Bossxr8]

Thats disgraceful. If the upper management had any heart they would decline the pay rises. Allan Mallaly and Bill Ford both refused a salary during the dark days and took nothing but stock options. White collar workers pay rises were denied too I think.