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Another Saab Story: New Owners Narrowly Sidestep New Bankruptcy.

National Electric Vehicle Sweden now seeking partners.

by on Aug.19, 2014

NEVS was able to restart the Saab plant for only a matter of months, producing about 6 cars daily.

It might seem like a comedy routine if it weren’t so deadly serious; the company that bought filed Swedish automaker Saab out of bankruptcy itself averted its own financial collapse this past week and is now frantically seeking a new partner to keep the operation going.

A Chinese-controlled coalition, National Electric Vehicle Sweden hasn’t produced a car at Saab’s Trollhattan plant since May and was being threatened by an unpaid supplier ready to force it into bankruptcy  – echoing what happened to the Dutch firm that previously tried to rescue Saab.

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“The company does not have enough liquid cash today to pay all outstanding debt, but NEVS’ assets are larger than its debt,” the new Saab owner confirmed in a statement. “NEVS cannot say exactly when, but NEVS’ suppliers will get paid.”


Saab Lining Up New Chinese Partner

by on Dec.05, 2011

Saab has lined up yet another Chinese deal - but may face problems getting it approved.

Struggling Swedish automaker Saab has lined up yet another White Knight in an effort to forestall bankruptcy.

With several earlier deals now stalled, Saab officials revealed they are talking with an undisclosed Chinese bank hoping it will partner with China’s Zhejiang Youngman Lotus Automobile Co. to buy a stake in the Swedish maker.

But the latest proposal would face some of the same hurdles that have tripped up other possible rescue deals.  Among other things, it would require the approval of Saab’s former parent, General Motors, which has been reluctant to give the go to any deal that might hand proprietary technologies over to the Chinese.

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Saab was struggling even before GM agreed to sell off the subsidiary in early 2010.  But things got significantly worse early this year when a number of key suppliers launched a boycott over unpaid bills.  The maker’s headquarters plant, in Trollhattan, Sweden, hasn’t been in steady operation since late March.


The End for Saab – Really This Time?

Administrator wants to end reorganization despite additional investment in carmaker.

by on Oct.20, 2011

It's increasingly likely Saab's factory in Trollhattan will never build another 9-5.

Saab’s court-appointed administrator will ask to have the automaker’s voluntary reorganization terminated immediately, a move that could force the liquidation of the long-troubled Swedish brand.

The move comes just hours after a private equity firm in the U.S. agreed to purchase $10 million in stock from Saab parent, Swedish Automobile and make available an additional $60 million loan.  Last week, Chinese investors came up with an estimated $15 million to help keep Saab going with an additional $81 million in bridge loans to follow before month’s end.

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But with bills mounting daily, even as its core assembly plant in Trollhattan, Sweden remains shuttered, administrator Guy Lofalk appears to have concluded that there is no way to turn things around and that a bankruptcy would be the best opportunity to maximize what can be recovered from Saab’s assets.

“Saab Automobile shall contest this application and request for continuation of the voluntary reorganization process,” the maker announced in a terse statement, adding that, “Simultaneously, Saab Automobile shall apply at the court for replacement of Mr. Lofalk as administrator.”


Saab Gets Another Reprieve

Chinese come through with $97 million bridge loan.

by on Oct.14, 2011

The bridge loan might just let Saab restart assembly operations next month.

For anyone disappointed to see soap operas vanish from American television there’s always the Saab saga to fall back on.

Just days after is seemed the maker was going to be forced into an involuntary bankruptcy it has been given at least another temporary reprieve, it has received the first installment of a $97 million bridge loan from one of the two Chinese companies looking to eventually buy a controlling stake in the struggling Swedish automaker.

Automaker Zhejiang Youngman Lotus reportedly has cut a $15 million check for Saab and should have the full $97 million deposited in the troubled Saab’s bank account within the next week or so.  It had appeared increasingly likely that the Chinese carmaker and China’s largest auto dealer, Pang Da, were not going to get approval from Beijing regulators to complete their acquisition of a majority stake in Saab.  With no new sources of cash, the Swedish maker would have been forced into what likely would have been the break-up of the company.

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The new loan should help Saab cover at least some of its bills.  It owes millions to 3,600 Swedish employees – which prompted their unions to try to force Saab into bankruptcy.  But it also owes millions to key suppliers.  Those partsmakers have been boycotting the company since late March over unpaid bills.  As a result, Saab hasn’t produce any cars at its headquarters plant in Trollhattan for more than six months.


Saab Shooting to Re-Start Production Mid-November

Maker now under court protection.

by on Sep.26, 2011

A Saab 9-5 in the Trollhattan plant.

Struggling under court protection to raise cash and pay off angry creditors Swedish automaker Saab hopes to get back into the business of building cars by sometime in mid-November.

That is just the latest in a series of plans to restart the company’s headquarters assembly plant in Trollhattan, Sweden, however, and skeptics would be far from surprised if the maker misses that goal, as well.

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After being rescued from the automotive rubbish heap in early 2010, Saab’s new parent – now known as Swedish Automobile – fell short of its sales targets and steadily deeper in debt.  By late March of this year the company’s unpaid vendors decided to boycott, leading to the shutdown of the Trollhattan plant.


Another White Knight Appears for Saab

Third Chinese company offers $18 million to cash-starved Swedes.

by on Jun.27, 2011

Saab lines up a deal to sell nearly 600 vehicles, raising $18 million in desperately needed cash.

It’s getting hard to tell the players without a scorecard, especially as Saab continues to spread its net hoping to come up with cash that can keep the financially struggling company afloat.

Less than a week after admitting it doesn’t have the resources to make payroll, the Swedish maker has announced yet another Chinese company has offered to lend it a hand, this time agreeing to pay $18.4 million in cash for 582 unsold Saab cars.  Meanwhile, efforts continue to win the approval of regulators in Europe and China needed to ensure that several other proposed deals can be completed, giving Saab enough cash to get it beyond the current crisis.

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“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,” Chief Executive Victor Muller said in a statement.

But it remains to be seen whether the latest bailout will be enough to get Saab back into production again, observers caution.