Saab: Going, Going, Hang On A Minute...
Chinese sign purchase agreement for Saab Automobile and Saab GB
Still, it sounds like good news!
Press release:
"Swedish Automobile N.V. (Swan) announces that it entered into a memorandum of understanding with Pang Da and Youngman for the sale and purchase of 100% of the shares of Saab Automobile AB (Saab Automobile) and Saab Great Britain Ltd. (Saab GB) for a consideration of EUR 100 million.
"Final agreement between the parties is subject to a definitive share purchase agreement between Swan, Pang Da and Youngman, which will contain certain conditions including the approval of the relevant authorities, Swan's shareholders and certain other parties. The consideration of EUR 100 million will be paid in instalments. An important consideration for Swan to enter into the transaction is the commitment of Pang Da and Youngman to provide long term funding to Saab Automobile.
"The administrator in Saab Automobile's voluntary reorganisation, Mr. Guy Lofalk, has withdrawn his application to exit reorganisation. The MOU is valid until November 15 of this year, provided Saab Automobile stays in reorganisation."
I think Rover's woes had less to do with the Chinese and a lot to do with politicians and dodgy chancers after a quick buck.
After going through a dull patch post-TWR when they seemed to be rebodied Fords with safety kit designed by the Daily Mail, Volvo actually seem to be improving under Geely. They're superb-looking cars these days, half-decent to drive by all accounts.
Also, Geely have bought into some of the world's best build quality. Despite GM-related wobbles, Saab also have a reputation for solidity, hopefully something that YM/PD can also harness.
Their first action, however, should be to ditch the 9-4X in favour of bringing forward the 9-1.
We've just got to get used to the new World - The Chinese will soon own many European countries anyway.....
I cannot see how the best advertising campaigns are going to presuade A) the current Saab owners & B) the general public to purchase Saab Autos going forward with uncertainty in terms of dealerships(limited)/warrenty plus the threat that it may all go pear shaped after 12month in the hands of the chineese....
but from a business point of view, its a flawed with no real long term solution
the company has been in rough waters lately and that affects customers wanting to buy new Saabs,
apart from looking good, there is no real breakthrough in the car. It doesn't entice people to buy it.
Resale value is pathetic so people again wont be wanting to spend on a car where after 3 years, they can
barely get 30% of 30 odd grand.
Its also in a market where people tend to choose distinctly between two types, executive cars and the average car. To be fair, its not as flashy as BMW or Merc or Audi or Lexus (people are brand conscious these days), and its too much for an average family car, stuck between both and no real reason to buy one.
I sat in a 2008 Saab 9-3 Vector and drove it a few miles, apart from having a decent petrol turbo, the car was an absolute joke, it is very dull and that interior as bland as a Hyundai i10. I was surprised to see why anyone would buy one.
Interestingly, I don't see this acquisition having any effect on the die-hard Saab customers; they're very loyal - despite stiff/better competition from BMW, Merc, Audi etc. Saabs are quirky cars in their own unique way; irrespective of re-badged components from other Co's i.e. previously G.M. Sometimes we all get slightly nostalgic with modern cars, linking current day models to their long historic pasts and especially when the manufacturer has strong motorsport links i.e. Eric Carlsson et al.
I'm due to be changing my Co' car this year and I will still have a Saab as a prefered option. They're not the best in their given market space but produce a good product. Good luck to Saab - I hope the deal goes through
Gassing Station | General Gassing | Top of Page | What's New | My Stuff