Saab Announces €70 million Technology Agreement

Like Phoenix, the mythological bird that burns down only to rise afresh from its ashes, Saab has been given a stay of execution.That's because today, Saab Automobile AB announced the signing of a technology license agreement with the Swedish Automobile Coöperatief U.A. (SPV) for the non-exclusive rights in Saab’s (appropriately named, as it turns out) Phoenix architecture technology.

According to a press statement, Saab will receive €70 million (US$97 million) for the licensing agreement, thus securing the short-term funds it so desperately needed – especially after the courts rejected its reorganization plan and denied it protection from its creditors.
In the same deal, Youngman also signed a technology transfer license agreement with SPV for purchasing the license and guaranteeing its payment. The transaction is not yet sealed and the funds will be received when the appropriate documentation is finalized.
Saab intends to repay this short-term bridge loan with a part of the €245 million (US$338 million) it will receive when the Chinese authorities eventually approve the Panga Da-Youngman deal -something the company sincerely hopes will happen sooner rather than later.

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Saab Sells 5 Million Shares!!

Exactly a month ago to this day, Saab announced a deal with China's Pang Da Automobile Trade Co. and Zhejiang Youngman Lotus Automobile Co while also revealing a grand plan for expanding its range with three new models, the 9-1, 9-6X and 9-7. It also delivered its first 9-4X in the US. All’s well that ends well, right?

Well, in Saab’s case it looks like we haven’t seen the end just yet. The Swedish firm continues to face a cash-flow problem. Thus, it issued a press release concerning the subscription notice for 5 million shares under a €150 million agreement between Swan and GEM Global Yield Fund Limited.
In other words, the Swedish company is offering a part of its shares for sale, with their price determined on a 10-day pricing period that commenced on August 3.
Saab also said that it expects to pay its white-collar workers' delayed salaries by Friday.Meanwhile it continues negotiations with other parties in order to restart production at the end of August and to fulfill the 11,000 orders it claims it already has received.

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Saab Subsidiary Resolves Bankruptcy Threat

This just in; only a few hours after it was made known that one of Saab’s suppliers submitted a bankruptcy petition against the automaker’s affiliate company Saab Automobile Tools, the Swedish firm issued a short statement saying that it has resolved the issue with Swepart verktyg AB.


Follow the jump to read the official statement from Saab's parent company Swedish Automobile N.V., formerly known as Spyker Cars N.V.

“Swedish Automobile N.V. confirms that Saab Automobile Tools AB reached agreement on payment terms with the supplier that filed for bankruptcy, thereby resolving the issue.”

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Subaru-Based Crossover Prototype Comes out of the Closet

Back in the corporate heydays of GM, before the Detroit automaker went bust, the General would re-badge just about anything it could get its hands on if it were to make a fast buck without breaking a sweat.
This lazy corporate mentality was not only limited to GM’s American products but it spread throughout the entire company. Saab and even Subaru were subjected to this crude process, which was mostly limited to swapping badges and grilles.
When GM controlled the fate of Saab and held a 20 percent share of Subaru, the Detroit company's executive gurus came up with the bright idea of re-badging Subaru models as higher-end Saabs and selling them for a premium.
The first product of the Saabaru project was the Saab 9-2x, which was nothing more than a Subaru Impreza hatchback with a different nose job and a re-trimmed interior. It was also the last production model of the sort as the following year, GM sold its Subaru’s shares back to the Japanese carmaker’s parent company, Fuji Heavy Industries.
But not before it finished a prototype named the Saab 9-6 that was built on the Subaru B9 Tribeca crossover. And even though most of us had heard about the 9-6, no one outside of Saab and GM had ever actually seen the crossover model, up until now, that is.
The Swedes decided that it was time for the prototype model to come out of the darkness and into the light of Saab’s museum in Trollhättan, Sweden.
Discovered and photographed by Steven Wade, the man we came to know as the founder of the Saabsunited website and who is now part of the Swedish firm’s social media team, the 9-6 is a typical product of GM’s re-badging process.
And by that we mean a Saab nose plus some minor changes to the exterior and interior trim.
Wade also mentioned on the company’s website that GM also developed a three-door prototype of the Saab 9-6, but its whereabouts remain unknown.

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New Saab 9-4X SUV

Saab is still trying to work through its problems, but the Swedish carmaker has some good news from the States. The first examples of the firm’s new crossover, the Cadillac SRX-based 9-4X, have just arrived at US showrooms.

“Our first vehicles are just hitting retailers and our first customer sale took place last weekend at Saab North Olmstead in Cleveland, Ohio” said President and COO of Saab Cars North America, Tim Colbeck.

The first US buyer of the 9-4X is Martin Reuben. “Before even driving it off the lot, I put my butt into the seat, looked around and bought it on the spot,” replied Martin. “So far everything I’ve discovered on this car is pure Saab – purposeful & well designed.” Saab has already 100 orders placed for its new SUV.

In the US, the 9-4X is offered with two V6 engines, a naturally-aspirated 3.0-liter with direct-injection producing 265HP and 223 lb-ft (302Nm), and a 2.8-liter unit with a twin-scroll turbocharger delivering 300HP and 295 lb-ft (400Nm).

Both V6 units are mated to six-speed automatic transmissions. The base 265HP V6 is available with front-wheel drive or Saab's XWD all-wheel drive system, while the 300HP version only with four-wheel drive.

The 9-4X is built alongside the Cadillac SRX at GM’s factory in Mexico.

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EIB Approves Lease of Saab Automobile’s property

The European Investment Bank has finally approved the lease of 50.1% of Saab Automobile’s property to a Swedish Consortium led by Hemfrosa Fastigheter AB for a period of 15 years. The deal is expected to net Saab Automobile 25 million Euros ($41 million).

“We have approved Saab’s property deal. We have no further comments concerning Saab” was the rather laconic statement of EIB spokesman, Pae Isaksson. The deal still needs to be ratified by the Swedish government, which has declined to comment on the issue.

This is another in a series of good news for the ailing carmaker, which last month had ceased production and had no way of paying its workers or its suppliers. The future looked very dark indeed for Saab, until the events took a turn for the better.

First, a Chinese company ordered 582 cars giving Saab a short-term lease of life to the tune of 13 million Euros. Then came the finalization of the deal with the Chinese companies Pang Da and Youngman along with the, rather unexpected, announcement of the development of three new models, the 9-1, 9-6X and 9-7.

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aab Announces New 9-1, 9-6X and 9-7

Saab’s parent company Swedish Automobile NV said on Monday it converted the non-binding memorandum of understanding with Pang Da Automobile Trade Co. and Zhejiang Youngman Lotus Automobile Co into a final agreement. However, the deal is still subject to regulatory approval from Chinese and Swedish authorities as well as the European Investment Bank.
In addition to the above agreement, Saab announced the formation of a Sweden-based joint venture company between itself and Youngman called NPJV, which will focus on the development of three new product models.
According to the Swedish automaker, these include an entry-level 9-1 and two premium cars, named 9-6X (most likely an SUV because of the "X" designation) and 9-7 (presumably a 7-Series competitor) which didn’t feature in Saab’s original plans.
The NPJV will be 50 percent owned by Saab Automobile and 50 percent by Youngman Passenger Car.
“Within the development process of these three new vehicle lines, Saab Automobile will be responsible for controlling and managing the design, the development and testing process to the start of production and providing other necessary technical and quality control support,” Saab said in a statement.
The Swedes added that Youngman’s passenger car division will be “responsible for providing the necessary financial investments in the joint venture”. Saab did not say where these models will be built, but manufacturing will most likely take place in China.
Mr. Pang Qingnian, CEO of Youngman, commented: “The agreement on the New Product Joint Venture brings together the best of both worlds, merging the industrial and financial strength of Youngman Passenger Car with the state-of-the-art technical expertise of Saab Automobile. The Saab '9-6X' and Saab '9-7' will be key to enhancing the prestige of the Saab brand to an even larger group of customers in China and the US, while the entry level Saab '9-1' will appeal to urban motorists around the globe.”

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Saab Secures More Funding by Leasing its Property

Another day, another chapter in the ongoing saga that is the survival of Saab. Afteryesterday’s order from a (yet unnamed) Chinese company, which temporarily solved its cash-flow problem, today the automaker announced that it has reached an agreement with a consortium of Swedish real investors led by Hemfosa Fastigheter AB, for the sale of 50.1% of Saab Property for a period of 15 years.

The company’s property consists of 483,000 m2 building space, for which Saab will receive € 28 million, with the consortium reserving the right to purchase, in 30 days after the deal is sealed, more shares for an additional €5 million, bringing the total to € 33 million.

In order for the deal to be completed, the Swedish National Debt Office, which guarantees the €400 million loan from the European Investment Bank, will have to release its pledge in the shares of Saab Property, otherwise the EIB will reduce the loan by €120 million.

Saab continues its efforts to secure additional funding and restart production, since the money it will receive will cover only its short-term needs.

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New Chinese Order Saab with a Temporary Lifeline

Maybe the future of Saab isn’t as dark as it looks, and the voluntary bankruptcy proposed by suppliers isn’t the only solution. Well, at least for now. That’s because the Swedish automaker announced today that an unnamed Chinese company place an order to buy 582 cars, with a total value of € 13 million.
The pre-payment is to be received this week, giving Saab a much needed funding to pay its workers and suppliers. This, however, is only a short-term lifeline for the ailing company and the efforts to secure funds that will guarantee the brand’s future and restart production, which has been halted again since June 8, are ongoing.

Victor Muller, CEO of Saab Automobile, said:

"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. The management of Saab Automobile is deeply committed to the company and its employees. I respect the decision of the union members to resign from the board of Saab Automobile. We very much regret the current cash shortage, which is causing undeserved hardship to all, and we are working relentlessly to resolve the current situation. We hope to secure additional short-term funding, necessary to reach agreement with all of our suppliers to restart production, soon.”
“Mr. Vladimir Antonov's interest in participating as an investor/financier in Swedish Automobile remains unwavering, but he is still awaiting a decision on his clearance from parties at interest following the Swedish National Debt Office (NDO) recommendation to clear him over 8 weeks ago. Once clearance has been obtained, Mr. Antonov can provide much needed financing and/or capital to Swedish Automobile/Saab Automobile at this critical time. We are pushing hard to obtain this vital clearance as soon as practically possible.”

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Saab Says it Can’t Pay Workers!! Company’s Survival in Doubt

New clouds are forming over Saab as the automaker’s parent company, Swedish Automobile N.V., formerly known as Spyker Cars N.V., said on Thursday it will be unable to pay its 3,800 employees their wages because it has not yet obtained the necessary short-term funding.

Swedish Automobile said it and Saab “are in discussions with various parties” to secure short-term funding, including through a sale and lease-back of Saab’s real estate assets.

“These discussions are ongoing,” Saab said in a press statement. “There can however be no assurance that these discussions will be successful or that the necessary funding will be obtained.”

The company also said Saab was continuing negotiations with its suppliers to reach an agreement on the terms of payments in order to resume regular inflow of parts and components for its vehicles.

Due to the lack of parts, production at Saab’s Trollhattan factory has been on hold since June 8. Previously, the company had shut down its plant in April and May.

Swedish Automobile has agreed to sell more than 53% of its shares to China’s Pang Da Automobile (29.9%) and Zhejiang Youngman Lotus Automobile Co., Ltd (24%), but the deal has to be approved by Swedish and Chinese authorities.

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Saab Production on Hold for Two More Weeks at least

Ailing Swedish car manufacturer Saab will not be producing new vehicles for at least two more weeks until it resolves the problems with its suppliers, the company said on Monday.
"There will be no normal production during weeks 25 and 26 (June 20th-July 3rd)," Saab spokeswoman Gunilla Gustavs told Reuters. "We are still negotiating with all suppliers and we need to get everyone on board at the same time. The weeks of 27-29 (July 4th-24th) are planned to be normal working weeks".
Saab restarted production at its Trollhattan factory in late May after a two-month-long stoppage, but the company was forced to shut down its engines again over a week ago when parts supplies ran out.
The Swedish automaker’s parent company Spyker Cars N.V. recently signed a preliminary dealwith China’s Pang Da Automobile and Zhejiang Youngman Lotus Automobile Co., Ltd., which if approved by the government, would put Saab into the control of its Chinese shareholders.
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