Thursday 22nd September 2011

Saab: Not Dead Yet

Bankruptcy protection approved for Saab, but only under appeal

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It might not be a full pardon, but Saab appears to have been granted, at the very least, a stay of execution after the Swedish approved bankruptcy protection for the struggling car company.

Although a Swedish court originally threw Saab's pleas for bankruptcy protection, saying that "there was no reason to believe the bankruptcy protection plan would help save Saab" Swedish Automobile (Saab's parent company) bosses have now seemingly convinced the government that they have a reasonable shot at long-term financial success.

This now gives Saab three months in which to secure short-term funding, during which time the Swedish government will pay the salaries of Saab employees. But will it be able to wring the cash promised from Chinese car makers Pang Da and Youngman? We suspect this saga ain't over yet...

(you can read what Saab has to say on the subject below)

SAAB AUTOMOBILE VOLUNTARY REORGANIZATION FILING APPROVED

Zeewolde, The Netherlands, 21 September 2011 - Swedish Automobile N.V. (Swan) announces that Saab Automobile AB and its subsidiaries Saab Automobile Powertrain AB and Saab Automobile Tools AB (collectively Saab Automobile) received approval for their proposal for voluntary reorganization from the Court of Appeal in Gothenburg, Sweden today. The purpose of the voluntary reorganization process is to secure short-term stability while simultaneously attracting additional funding, pending the inflow of the equity contributions by Pang Da and Youngman.

The Swedish Company Reorganization Act says that an application shall not be approved unless there is reasonable cause to assume that the purpose of the reorganization will be achieved. In today's decision, the Court of Appeal has found that such conditions exist, thereby overturning an earlier ruling by the District Court in Vänersborg, Sweden.

As a consequence of the Court of Appeal ruling, Saab Automobile will request for the bankruptcy filings by unions IF Metall, Unionen and Ledarna to be cancelled.

 

[thewheelman]

I hope Saab survive, but i can't help but think this is just prolonging the inevitable.

[Frimley111R]

Tata should buy it. The way JLR is going at the moment Saab could be another big money spinner.

[jbi]

re-arranging the deck chairs on the titanic

[DavidHM]

Frimley111R said:

Tata should buy it. The way JLR is going at the moment Saab could be another big money spinner.

Platform sharing could work very well... except that Saabs have historically always been FWD, Jaguar RWD, Landrover AWD. That's changing but it might end up diluting the brand if/when a new X-Type is produced.

[Fetchez la vache]

DavidHM said:

Frimley111R said:

Tata should buy it. The way JLR is going at the moment Saab could be another big money spinner.

Platform sharing could work very well... except that Saabs have historically always been FWD, Jaguar RWD, Landrover AWD. That's changing but it might end up diluting the brand if/when a new X-Type is produced.

There's a big big difference in the shape JLR was in when Tata bought it, and the shape Saab are in now, unfortunately.

[J4CKO]

Sadly, Saab is now just a name and some history, the current 9-3 is warmed over leftovers dating back ten years (I have a 2003 myself) and a rather nice looking but off the pace 9-5 based on another Vauxhall that didnt do very well in reviews compared to its competition, even before it looking like the company was really on the way out, who in their right mind would buy one at 30k rather than a five series or A6, much as it pains me to say that !

They are never now going to have a credible competitor unless someone starts afresh, just using the brand, would have to be platform sharing with someone else as realistically who is going to bankroll a realtive niche player against the migth of the Germans to produce a new range of cars.

[Numeric]

I think that the Chinese not unwisely are waiting for death and will then buy what assets they can from the corpse. Why take on the responsibility of lots of well paid Swedes? As for the manangement, well some might contend that their similarity to the Phoenix mob could be striking. After all Spyker weren't known to be profitable and SAAB came with a lovely chunk of change, just not as much as MGR got from BMW. As for the company, not many of us would have bought a SAAB so the marginal costs of building so few cars for the few who would are horrible, hence the company has no chance of making money. Sorry, economics is a hard mistress!

[0a]

A shame, I liked the look of the 9-5 when I saw one the other day. Clearly i'm in a minority, and would you buy one anyway when it seems the company won't exist in a few months. Reminds me of the Rover 75 - a good enough model in its time, more on-brand compared to the previous 10 years but just too little too late.

[HeavySoul]

Sadly I think 'yet' is the operative word.

[wab172uk]

Why would the Chinese pump money into Saab?

Wait until they go bankrupt, then buy all their assets, move production to China, and we have Rover MK 2.

[toppstuff]

New 9-5 estate is a lovely looking car.

Given some stability in the company , I would buy one.

[soad]

wab172uk said:

Why would the Chinese pump money into Saab?

Wait until they go bankrupt, then buy all their assets, move production to China, and we have Rover MK 2.

Very true

[blearyeyedboy]

wab172uk said:

Why would the Chinese pump money into Saab?

Wait until they go bankrupt, then buy all their assets, move production to China, and we have Rover MK 2.

There's a slight difference. Saab don't actually own the Saab brand.

It's an agreement with Saab AB (the people who make planes and defence equipment) that ends if Saab Cars goes bust. If you want to build cars with a Saab name on the nose, you'll have to keep the current company afloat or make a good deal with Saab AB.

The other assets are fair game though.

[Al 450]

Sadly speaking from personal experience the Chinese will string them along with promises of a 'deal' which never quite materialises, then wait until they are in administration where the assets and IP will be bought for a fraction of the cost.

SAAB are already dead, the vicious circle of lower guaranteed future values leading to higher finance costs plus concerns about the warranty will decimate sales. All their first tier suppliers will have doubled or tripled piece price costs to cover the perceived risk and they will be demanding payment up front for parts which will seriously affect cashflow.

I'd like to see a buyout by a major western manufacturer, that would give buyers the confidence in the longevity of the brand.

[NiceCupOfTea]

I love Saab as a brand, and their earlier cars - even the later cars are likeable if not "different" enough or any better than the competition.

I have to say that I think it is prolonging the inevitable though. I would love to see Saab turned around and turned back into a niche manufacturer, making quirky sporty practical saloons like the c900 and 9000. They can't compete with Merc/BMW/Audi on quality, drive or badge cachet, they can't compete with Ford and Vauxhall for volume/rep sales, and they can't compete with the Japs on reliability. They need a USP (like they had 20 years ago when you could buy cars that were actually different from each other). I reckon if they could set up a small operation to make a new "classic 900" they could be saved, but what do I know.

What I really don't want to see is the badge saved at any cost: some awful Chinese car being sold with the same badge as icons like the 96, and the 99 and 900 turbos.

Happier times:

[cookie1600]

It would be nice to see if they can get the new 9-3 into production but not in a Rowe/MG 'stick-on badge' set up.

I'm afraid it looks like postponing the inevitable and I can't see that SAAB AB, the rights holder for the SAAB name, permitting it's use on a car made in China (or at least owned by a Chinese company).

http://www.saabgroup.com/en/About-Saab/Newsroom/Sa...

[HellDiver]

Saab has been dead since they started selling expensive Cavaliers in drag in the 90s. Their corpse just won't stop twitching.

[Cotic]

toppstuff said:

Given some stability in the company , I would buy one.

Therein lies their problem, methinks. Are the buying public ever going to see the company as stable again? Even if the Chinese money comes in?

I bought a Rover in 2005. After the company crashed. Absolute bargain.

[Alfa Papa]

As second-hand buys go, SAABs are hard to ignore. Less than £5k will get you a seriously decent car, low on age and miles with lots of kit, plenty of speed and solid, tried and tested mechanics. It will swallow your luggage, your family but won't kill you on the fuel. HOWEVER, as many others have said here, who in the name of Sven Goran Eriksson is going to part with 30k for a car who's maker is living on borrowed time (just about.) Look forward to when the new 95 is 3 or 4 years old. Will be an amazing buy, if you can find one that was bought new in the first place...

[bennyboydurham]

Only driven a Saab once and that was enough. Awful ride and handling, gutless, thirsty, poorly constructed and possibly the worst stereo I've heard in a car since my 1984 Peugeot 305 GR. Sorry Saab, but you're the Swedish MG Rover.