Youngman has placed a new bid for SAAB
February 20, 2012 in News
So says the founder and owner of Youngman Pang Qingnian in an interview with Swedish newspaper Svenska Dagbladet on location in China.
He claims to also be prepared to spend twelve billion Swedish Crowns on developing new Saab models. And he promises that cars will still be manufactured in Trollhättan also in five years.
- It is essential, he told Svenska Dagbladet.
From SVD.se (original article here)
JP said on February 20, 2012
Interesting…
David-SAAB said on February 20, 2012
May the best company with the best bid and intentions win.
Niklas G said on February 20, 2012
+1
100%Saab said on February 20, 2012
Someones interested in Saab.
Bob Conolty said on February 20, 2012
If they are willing to spend that much money on SAAB, then SAAB can build real SAABs again and gm will simply just have to cope.
TimR said on February 20, 2012
Just as a comparison, the costs of paying the staff for about a year is 2,5 billion SEK. The marketing costs for 2010 were about 1,8 billion SEK… So putting in 12 billion to develop new cars wouldn’t get them that many cars…
till72 said on February 20, 2012
Even more as they have to develop a complete model range without GM stuff.
StefanH STHLM (www.bmsg.se/saab sales.pdf) said on February 20, 2012
It would be interesting to have the equivalent numbers that Spyker entered with in 2010.
Just to get some perspectives on things.
Peter, Sweden said on February 20, 2012
Tim, were you this pessimistic when Spyker entered the stage with only an EIB-loan? Sure, back then we had two newly developed cars, but with 12 billion SEK you can at least develop two cars + the new 9-3 (900) – without being in debt. How can that be a bad thing?
Audun said on February 20, 2012
+1
davidzgy said on February 20, 2012
+1
Jesse Crandle said on February 20, 2012
But the question is does BH have anywhere near that kind of funding, or the know how to get a car company back on their feet. I thought I read somewhere the President of BH had somewhere around 13.5 billion SEK personal funds, which is almost what YM is now willing to invest in the Phoenix platform. Still though, if YM is willing to pitch in a new bid this large it’ll be exciting to M&Ms.
TimR said on February 20, 2012
What BH have and what they have access to are two totally different things…
StefanH STHLM (www.bmsg.se/saab sales.pdf) said on February 20, 2012
Ah now I got it. BH is for Brightwell Holdings. They were BW to me until now.
All these abbreviations……
Angelo V. said on February 20, 2012
Roughly, how much does 12 billion crowns translate to in U.S. dollars? If nothing else, I’m encouraged that Youngman is this damn persistent and tenacious.
Jesse Crandle said on February 20, 2012
1.8 billion usd
Peter Gilbert said on February 20, 2012
For what it’s worth I brought up the matter about GM’s skulduggery with my US Congressman last month. Just this past Thursday I was at my US Senator’s office. They are both in the top 5 on the Hill for fiscal responsibility to the taxpayers, in Regards to GM making money. The sale of SAAB would mean money coming back for once.
Aero1 said on February 20, 2012
I thought the same thing months back, do not feel GM should have a choice on allowing the sale of SAAB, as we the US taxpayers have not been paid the over $6 Billion back, and in all honesty the US Govt is GM’s largest or one of the largest shareholders, which would mean we should have more say in what GM does with our (mine/your) money! When GM pays ALL the money back, they should really cap their arrogant attitude!
On the Youngman bid: I did not and do not trust the Chinese with keeping their word on the survival of SAAB as a brand. (My personal opinion)
Henrik B. said on February 20, 2012
Yes, and GM is also fighting with Opel now – as they lost app. $1 billion last year. And GM promissed back in 2009, that they wouldn’t close any Opel plant, until 2014. So they’ll probably have to take the losses for at least two more years!
Cheers!
Bob Conolty said on February 20, 2012
Sensonic said on February 20, 2012
“And he promises that cars will still be manufactured in Trollhättan also in five years.”
What does this five years mean? That they’ll guarantee the production will stay in Sweden (Trollhättan to be precise) for the next five years? OK, what’s gonna happen after that five years? They’ll realize that it’s not profitable anymore to manufacture cars in Sweden, scrap the whole idea and move the production to China?
Simply9-5 said on February 20, 2012
Couldn’t that be said of any of the bidders though?
Peter, Sweden said on February 20, 2012
The interviewer’s question was if SAABs will be designed and produced in Sweden five years from now. We can only hope that the answer would’ve been the same even if the question would’ve been 15 years.
Chris Hansel said on February 20, 2012
I also wondered on that. At the same time has the ownership of the Phoenix platform been correctly understood? They were many posts here 2 months ago claiming that Youngman had rights to Phoenix in someway, but this is no longer the case? If Youngman put money in Saab before Dec 20, 2011, does that mean they are moved up the food chain as far as bidding is concerned? Many questions, few answers.
TimR said on February 20, 2012
Youngman has never had the rights to the phoenix… they just bought the rights to some components in the phoenix… but very far from the whole thing, please listen to the questions after the bankruptcy press-conference, that’ll answer all your questions! I was there personally and asked exactly that kind of questions.
We have the press conference on our youtube channel…
Smithy said on February 20, 2012
I’m with Sensonic in this one. Even if their commitment sounds really good – that familiar five year-plan isn’t going to leave them anymore profitable if they choose to withdraw operations from the heart of Saab. Just saying.
Everything in and around Trollhattan has been related to Saab’s way of marketing, the weather, snowy testing grounds, airfield some hundred meters from the factory and so on.
But hey, it’s better than nothing, and they’re not the only ones interested.
Petteri said on February 20, 2012
I assume we can read it “in the foreseeable future”. I mean, how could anyone make any promises that extend more than five years in to the future? And I agree, five years would be so much better than zero.
TimR said on February 20, 2012
I agree, I don’t think anyone at GM in 2005 could predict that they would go bankrupt after 5 years =)
jim said on February 20, 2012
During the very sad GM bailout, I very much wish instead GM had been parted out — Cadillac sold to a more capable custodian such as VW, Saab sold (actually; with a right to exist) or spun off, Chevrolet maintained as GM’s core competency, which is full-size trucks, and the rest shut down. Oh well. Now, we have a bizarre Cadillac range run by people who do not understand Cadillac’s brand or classic styling heritage. At least Saab was being designed according to its traditions and strengths. By GM standards, the Saab lineup was done well. I just wish the GM bailout were done differently, with different people appointed to manage GM’s assets. It is analogous to Sweden and Saab. Governments achieving the lowest common denominator. A free market solution in 2008 might well have given Saab a more complete chance. But there is still hope.
Angelo V. said on February 20, 2012
+1 I’m from a GM family. We owned them all—-when my Dad was living and had a business, he got a new Cadillac every few years. You’re dead on with the Cadillac comments—-the “classic styling heritage” has been transformed to rap bling. It’s actually helped their sales short term—-but their image among successful professionals has become a joke—-a punchline at parties.
Bouwe said on February 20, 2012
It is interesting, but time has learnt us that Chinese are more motivated in copying models and buying technology than keeping intrinsic values. We should wear the coat of scepticism, but it is also a good push for other interested parties. I am truly interested in what Mahindra will do. A client of us, who has lived for six years in India, and he was impressed by the Mahindra quality of the cars. After 40k miles on very bad roads, their SUV still felt like new. So they know how to build a decent car. I’m also eager to know of Christian K is still in the game. That would be a blast as well..
ivo 71 said on February 20, 2012
In this specific case, yes, YM would be doing business in the Chinese tradition: by buying technology through buying Saab. But they would also be buying the history, reputation and Swedishness of Saab. All these factors play a major role in the marketing of the cars. The continued existence of Saab as a globally known and present Swedish light-premium car manufacturer is, therefore, of paramount importance to them. If they move all of Saab to China and compromise on the quality and character of Saab-branded products then Saab will no longer be perceived as an exclusive European quality automobile and its marketing value in China will crash to near-zero.
So, if Saab is to be of any use to Youngman, they need to keep the brand intact and the product line, originality and quality on a level fitting the brand. The origin of the cars is also quite important on the Chinese and Asian markets. It allows the brand owner to demand much higher sales prices for and realize much higher profit margins on the cars than they ever could with locally built products, no matter what badge they stick on them.
Generally speaking, I believe that YM would keep production going on in THN, not because they want to contribute to the continued well-being of Swedish families there but simply because it is in their own commercial interest. They may also start assembling some Saab-branded models in China after a while as a spin-off of the THN production but I believe these would probably be cheaper and smaller cars intended for the Chinese/Asian markets only. Or perhaps the current 9-3 generation, once the GM-free Phoenix-based NG 900/9-3 has been launched?
Ivo
Red J said on February 20, 2012
SvD has now published an interview with Mr. Pang..
there Mr Pang talks about his plans, the 9-3 and where the money comes from. I think Swade has resumed it (as always) pretty well in one of his last tweets.
rask said on February 20, 2012
I’m sitting 80km from Saab of Trollhättan. I work at the Chinese company of Volvo Car Corporation. I also worked at this company when it was the US owned company Volvo Car Corporation.
I can assure you that the biggest difference is that there´s a lot stronger belief in the company now that it was back in the US days. I think Saabs United is the wrong place to judge anyones intentions and skills based on their nationality.
I personally hope the best for Saab and I hope it will survive. I think most of the commenters here agree and I think back-stabbing any of the interested parties that plan to restore the car manufacturing in Trollhättan is the wrong way to go.
Show your support to all of the interested parties and let the adminstrators decide who will best suit the carry on with Saab.
StefanH STHLM (www.bmsg.se/saab sales.pdf) said on February 20, 2012
+1
Cokeisit said on February 20, 2012
+1
ivo 71 said on February 20, 2012
+1
Ivo
Nick Bolger said on February 20, 2012
Here here I couldn’t agree more, I think all interested parties bring something to the table and at the moment SAAB has got nothing .
Having recently purchased my first SAAB in April 2011 (possibly) one of the last 95′s to come off the production line, I am eager to see their resurrection as I would like to eventually replace with another new SAAB.
davidzgy said on February 20, 2012
Strongly agree!!! It is very sad to see people judge a different company based on their own CULTURE and NATIONALITY all the time…
StefanH STHLM (www.bmsg.se/saab sales.pdf) said on February 20, 2012
It would be interesting to have the equivalent investment numbers that Spyker entered with in 2010.
Just to get some perspectives on things.
Red J said on February 20, 2012
If I remember well, YM said something like willing to invest 750 million Euros to develop the 9-7, 9-6x and 9-2/1. So those 1,3 bn € is a little bit more, but they have to complete the 9-3, develop a 9-5 successor and a 9-4x before they start to develop the really big Saabs(9-6x, 9-7).
StefanH STHLM (www.bmsg.se/saab sales.pdf) said on February 20, 2012
?
StefanH STHLM (www.bmsg.se/saab sales.pdf) said on February 20, 2012
Do You know for which price Spyker bought Saab? And how much money they had in store for the time after the purchase?
That is what I meant.
Jasper said on February 20, 2012
Your comments are terrific!
I would like to see SAAB follow the Volvo/ Geely model for a sucessful transititon.
Stay well Sir!
DanSaab said on February 20, 2012
Hang in there Saab!!
Since Saab is about to reach 110K fans on Facebook page pretty soon, how about make something surprising to support them??