RSS Feed Saab gets new $492M bid from Youngman

[RSS Bot]

Filed under: China, Europe, Saab, Earnings/Financials



Youngman has made another bid for bankrupt Saab, according to new reports. The Chinese automaker has offered to buy what's left of Saab for $470 million at current conversion rates. The news comes courtesy of Dagens Industri. The newspaper also indicates that's the absolute lowest the Swedish automaker's pledgees and real estate owners will accept to settle the company's impressive debt. The deal would also set aside an additional $1.47 billion to restart production at the mothballed Trollhattan facility. Other foreign automakers are also vying over Saab's remains, including India's Mahindra & Mahindra.

Pang Da, meanwhile, seems to have no interest in continuing to pursue Saab. The company paid out around $59 million for vehicles Saab was supposed to produce. That never happened, and now the Chinese company has had to undergo the unpleasant task of reporting that loss to its investors.

Saab reportedly owes around $1.9 billion at the moment, and its assets are valued at just $532 million.Saab gets new $492M bid from Youngman originally appeared on Autoblog on Wed, 18 Apr 2012 13:29:00 EST. Please see our terms for use of feeds.



Permalink | Email this | Comments

More...

[sptsdn]

I'm curious what Youngman would get at this point. As I recall, the 9-4 is dead and GM will not make any more (or sell the ability to make them), production in Sweden is shut down and I suspect would cost a small fortune to restart. The 9-3 is outdated and the 9-5 is a tough sell in a highly competitive market. The global dealer network is pretty much gone. Add to that, the brand image is virtually non-existent to the general buying public, and even if they are aware of the brand, the perception is probably negative.

So I guess I don't understand what they would gain from buying SAAB. Any ideas?

[J-Rod]

Originally Posted by sptsdn

I'm curious what Youngman would get at this point. As I recall, the 9-4 is dead and GM will not make any more (or sell the ability to make them), production in Sweden is shut down and I suspect would cost a small fortune to restart. The 9-3 is outdated and the 9-5 is a tough sell in a highly competitive market. The global dealer network is pretty much gone. Add to that, the brand image is virtually non-existent to the general buying public, and even if they are aware of the brand, the perception is probably negative.

So I guess I don't understand what they would gain from buying SAAB. Any ideas?

Essentially all they can get; the name. And it's a bit overpriced....(Like the new 9-5 )

[Rarelibra]

Originally Posted by sptsdn

I'm curious what Youngman would get at this point. As I recall, the 9-4 is dead and GM will not make any more (or sell the ability to make them), production in Sweden is shut down and I suspect would cost a small fortune to restart. The 9-3 is outdated and the 9-5 is a tough sell in a highly competitive market. The global dealer network is pretty much gone. Add to that, the brand image is virtually non-existent to the general buying public, and even if they are aware of the brand, the perception is probably negative.

So I guess I don't understand what they would gain from buying SAAB. Any ideas?

How about the assets - the technology.

[96mn12]

Originally Posted by Rarelibra

How about the assets - the technology.

tech is obsolete, i think the only thing of value is the tooling, robots and the real estate.

[sptsdn]

Originally Posted by Rarelibra

How about the assets - the technology.

What assets and technology does SAAB have anymore? A factory in Sweden where labor costs are much higher than Youngman's home, China. I'm not sure of the condition of the factory compared to Youngmans own, for example, how state-of-the-art was it? Perhaps the equipment inside is of value assuming it's still there.

As far as technology goes, wasn't most of the recent stuff from GM? The XWD was a Haldex product that Youngman could buy directly from Haldex. I suspect engine management software may be of some value as well as some of the safety technology but a lot of that knowledge walked out the door when Saab was shut down? How many of those people will they be able to hire back (some of them may have already gotten other jobs etc).

I agree with J-Rod that they get a name - something far more global recognizable than Youngman but unfortunately that name comes with a lot of baggage.

['97 Saab SE Turbo]

I was really expecting the GSA to put in a bid. Heck, a few trips here, a few trips there and it's paid for. Then add in Panetta's travel expenses... Ron

[N.E. Swede]

Youngman has been in the picture for some time now. Don't be surprised if they've already built a new 9-3 on the Phoenix platform (minus the 10% GM tech.) This was the partnership SWAN was banking on

So, they're buying an established (?) name in a market they want to get into, a plant that GM put $1 billion into, and an expandable platform to produce a few different model cars on. All for probably less overall cost than the planned partnership with SWAN

[SaabKen]

I'm hesitant that, at this stage, what real remaining brand equity and capital does the name SAAB have anymore ?

[CleveSaab]

It actually surprises me how few "regular" people know that Saab is dead.

[sptsdn]

Originally Posted by CleveSaab

It actually surprises me how few "regular" people know that Saab is dead.

Perhaps because it was never on their radar in the first place?

[SaabKen]

Originally Posted by sptsdn

Perhaps because it was never on their radar in the first place?

But they were always in SAAB's radar

[genman]

Saab tech is not old hat..its GM's control of Saab that crippled the company.
GM never wanted Saab to outsell the US GM brands which was why onstar etc wasn't initially available on Saabs vs the other Epsilon designs.
The new 9-5 is very impressive on the road and for me a nicer drivers car than Merc or BMW and come the winter the XWD system is a joy.

Saab designers have always had a slightly different perception of the market and that has always appealed to a certain sector of the market.

If they get up and running again they need the freedom from new owners to re-invent themselves in the same way they did with the 99....downside is that by using GM parts for the last 15 or so years it made some areas cheap to produce which allowed them to put time and money into a strong safety shell.

In the UK a 9-3 was seen as an expensive Vauxhall Vectra by many who hadn't driven them....the Saab was 1000% better in every area but sales so the 1st thing the new owners will have to do is win over the press.

fingers crossed that Saab return soon.

[CleveSaab]

Originally Posted by sptsdn

Perhaps because it was never on their radar in the first place?

I think it has much more to do with the fact that most people: simply aren't gear heads.
Was it even on the local news but maybe a passing mention?

[saabmeatball]

I have read other sources saying that not all of Saab's technology has been released. So there maybe something in the works at Saab that no one can talk about -

[TunnanXWD]

Psssssssssssssssst, go tell the "crew" over at SU that Alex of North Street has got the top bid in.

And they have a deal with Wright Radial Engine Company.

It will be a "push & pull" configuration say the inside sources.

Haldex? We don't need no stinking Haldex ..

[SaabKen]

Originally Posted by TunnanXWD

...... that Alex of North Street has got the top bid in. ........ Haldex? We don't need no stinking Haldex ..

All in all it's just another bid in the hole ......

[valbowski1980]

Originally Posted by CleveSaab

I think it has much more to do with the fact that most people: simply aren't gear heads.

Agreed...

Originally Posted by CleveSaab

Was it even on the local news but maybe a passing mention?

Top Gear gave a nice send-off but nothing much beyond that.

[AE86]

I think the Youngman bid failed?