Press Release: Saab Automobile Update

Trollhättan, Sweden: Management of Swedish Automobile N.V. (Swan) and Saab Automobile AB (Saab Automobile) confirm that the reorganization is progressing and that a first payment by Youngman under the bridge loan funding commitment as announced on September 12 was received by Saab Automobile.

Further payments under the amended and final bridge loan agreements signed between Youngman and Saab Automobile are expected to be made during this week and by October 22 of this year. It is the intention to repay the bridge loan with the proceeds of the EUR 245 million equity investments by Youngman and Pang Da, which are still subject to approval by relevant authorities and parties which Swan expects to receive during the next weeks.

64 thoughts on “Press Release: Saab Automobile Update”

  1. Good that there is more bridge financing coming.
    Interesting wording ‘amended and final bridge loan agreement’ – I would like to know what this new deal consists of.

  2. Yes, it`s brilliant news, at last something positive and definite. But production has to re-start asap, 2012 is no good whatsoever – and I hope that the re-organisation will not result in cost-cutting materials – some in the 9-3 already look and feel cheap.

  3. Griffin Upp 😉

    I hope now at we on Saab can start productions soon !!!
    So everyone who wants a wonderful car can order one now,And know when they will get it with their dealers, they have received a Swedish quality.
    And it’s loyal Saab workers who built them and who believe in the brand and management!

  4. We are the front line people who face the buying customers, after all the development, design, production and assembly, the final stage is for us the dealers to present all that to the customer. Is is fair to say that our moral, confidence and salary has been pretty damaged over that past year yet for some infectious reason we remain! It is the Saab ‘bug’ and yyou either have it or you do not. Some will wonder what the bug is but it can not be explained, if you have it then you understand it.
    And so, we the dealers now need an urgent restart of production, all outstanding orders upgraded to Model year 2012 delivered urgently. The resumption of production deliveries will give us that much needed shot of adrenalin to relight our fire and passion.
    Martin, Concept Saab UK.

  5. Once production starts we need to have local TV News Shows do a story like a visit to a dealership. I certainly would like to do a spot as I have done this before. This goes for Canada too.

  6. good news indeed. but i hate new plan, A new plan will cause many condition change, A new plan will spend more time. Time means money. A new plan means a continue loosing of SAAB brand value. A new plan means suppliers and dealers will crazy!

  7. Pfffffff……finally the first injection did come in.
    Now the big shot and then…….plans guys; the plans for the restart of production on the table while without cash flow by selling products this savings operation will not happen again.
    Saab up
    Dealers up
    Customers up

  8. Thank God and anyone else involved. Saab will move foreward . Please do well and right . Spend OUR money wisely and lets get some parts over here to the U.S. to repair our loyal customers cars.

  9. That was quite a job by Muller. To persude a company that the administrator had tried to freeze out of the deal on the weekend to pay up enough money to pay the staffs wages for a month is yet another triumph of negoiation. No matter what anyone thinks of him, Muller is certainly the man in a tight corner.

    Unless of course, Youngman have already been tipped off that the NRDC deal won’t go through and because they have now paid an official deposit on the PhoeniX platform, they will get it on a platter if Saab then do go to the wall. £10 million (approx) is a very cheap price to pay for an entirely new, latest technology floorpan which in market terms was already going very cheaply. And as none of us were in the room, who knows what else Muller has had to promise them to make up for Loflaks ‘over enthusiasm’?

    End of the day, if the NRDC says no this money makes no difference at all. If the Chinese say yes it is certainly still a long way to go before the production is re-started and any sense of Saabs brand image is returned to the market place.
    I’d keep the cheering subdued & the champagne on ice for at least a little while longer.

    • gawdlpus,
      as ryanonsrc wrote yesterday, the two bottles of champagne are for the YES from the NDRC and for the production re-start. Since then we will simply feel happy that Saab has survived another day. 😉

  10. Gawdplus you are absolutely correct- If the chinee govt say NO the platform has been aquired VERY CHEAP indeed- If they say YES I only hope there are more investors coming in – I still believe its going to take 1 billion euros plus for the next 5yrs – long way to go from here- are Pang Da/Youngman in for this type of mega investment?? Im not so sure… Still much work to be done – but good news no the less

    • Since we don’t know the details of the platform deal, we don’t know to what extent Youngman have acquired it, or rather the rights to use it.
      I would imagine that Lofalk have put up a brave fight to avoid too much drainage of Assets from Saab

      Youngman/Pang Da has the money necessary or are able to raise them if they want to.
      But everything still depends on NDRC.
      I expect a Yes, but that is just my expectations

    • i don’t know either… but i ask myself one thing…
      why mr. V. A.’s money was not good enough… and that is… but… i don’t care
      as long as Saab survives…

      anyway… i hope V. A. has not given up to invest…

      • from my very personal view, if V.A really want SAAB, he could prepaid cars like Youngman & Pang Da did in April, to keep production line running. according his ability, he can do better than Youngman, for example, he can prepaid 5000 cars. and now? SAAB lost millions of money because production line stop.

        so i think if Youngman can bring enough money, forget V.A.
        A simple owner structure is better for a small company like SAAB. SAAB can move faster. I recommend Youngman 100% own SAAB. If Mr.Muller refuse. Let SweGov in, buy out EIB. I think this will let everythings simple and NDRC will has no reason to reject. Because Volvo is 100% own by Geely, if SAAB wants to catch Volvo, SAAB must move faster.

        • And what wold V.A. done with the cars he ordered? Saab already had/has a Russian distributor in place, and even if he was to resell them, he’d have to get Saab cars certified by the government for export, and he’d have to get licenses for resale… Too much work for a fickle amount of orders that wouldn’t do a thing for the production line.

          • he doesn’t need get those cars, the money can be turn to loan. and SAAB can use that money keep production line running. then that 15,000 cars in order book can be made, deliver to customers, 9-5 SportWagon can roll in to production, then dealers can continue sell cars to their customers. then SAAB can pay back V.A.

            Even if 750M come to SAAB today, can SAAB restart production line immediately? or just pay salaries, pay suppliers, pay bankers, pay others. then out of money. then continue wait other 245M invests from chinese.

            To survie from hell, SAAB must build cars.

    • As a chinese, i think Youngman’s financial capacity is as good as Geely, maybe better than Geely.Because Youngman is family owned. according the law, Youngman is no need to publish it’s financial information.

      Youngman’s bus & coach business are very good and profitable. From my own experience, you can seen Youngman made long-distance buses in almost all long -distance bus stations and highways in china.

      and Geely, i don’t seen so much. and bus business is profitable than car business.

      but Geely is list company in Hong Kong Stock, they can financing through the issuance of shares. for Youngman, i think their major money resource is private consortium.

      Don’t worry about Youngman’s money. worry about how many assets SAAB has remaining now,If I did not count wrong, only brand name and IP rights of phoenix platform. all the other is mortgaged or sold.What a sad thing.

      • fido,
        thank you for your POV directly from Chinese ground. I think it is not easy for western people to fully understand how things work over there. And also thank you for replying to what seems to be a FUD-writer.

  11. Nor myself or my wife can wait to get a test drive of the 9-5 SC and the 9-4X to possibly replace our 9-5 (old generation ) SC. Unfortunately it will most likely mean the same as now, that my wife still will keep the SAAB as “her” car and let me stick with my car (eventhough it is not bad at all but it just do not have have that thing that some of us just love, THE SAAB something which just is there)

  12. The production start should be well publized with the press and journos. The world out there should know that Saab is back and running. PR and advertising will be one of the backbones for further sales. Hats off to all those dealers out there.

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