Press Release: SWEDISH AUTOMOBILE SIGNS MOU WITH PANG DA AND YOUGMAN FOR THE SALE OF SAAB AUTOMOBILE AND SAAB GB

Zeewolde, The Netherlands, 28 October 2011 – 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 Guy Lofalk, has withdrawn his application to exit reorganisation.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.

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17 Comments

    1. So far it’s only a memorandum of understanding so don’t open the champagne just yet.
      The deal have to be approved by a lot of letter combinations like EIB, NDRC, GM and so on.
      In the short term it means that Saab will be in reorganisation until November 15.
      In the medium term (provided everything goes according to plans) it would probably mean that the production would restart.
      In the long term… Who knows? Saab as a manufacturer will probably survive, but some are worried production would move to China. I don’t think so and certainly not in the short term.

    1. This is what SWAN gets, what’s important for SAAB is how much they invest in SAAB and how quick they can get the production going and things back to “normal”. One can expect that they soon also will announce that they will start production in China, but it will probably take at least two years until the first SAAB leaves a Chinese plant. If they plan to keep SAAB as an international company they must also keep the Trollhättan plant and I think one of the assets they valued most in the deal is the strong development capabilities so they are also likely to keep that in Sweden for the foreseeable future.

  1. My best wishes to all SAAB employees for this encouraging development after all those months of uncertainty.  Hope SAAB will get well again soon.

  2. Great news, I’m so very happy for everyone connected with Saab, particularly those in Trollhattan. For myself, who learned to drive in a Saab 99 I feel a sense of relief. I’ve had a 9000, and now I can look forward with confidence to purchasing a New 95 estate as soon as the production lines get going again. Congratulations!

  3. Pretty disappointed SAAB may become a pure Chinese company. I would have loved to see the company under VM. If this deal goes through I am likely riding in my last SAAB vehicle. Ugh

  4. Congratulations to all involved. 

    I would imagine things came down to the last moments.

    Thank you all for giving me the future opportunity to purchase my 7th new Saab.

    Long Live Saab!

    Perian – GMI

  5.  
    I agree with comments inthere, Trollhättan plant would be maintained to produce cars for european & NA market, then cloned in China to produce for asian market. No doubt Chineses got the best cash garanties needed to continue Saab developpement. Volvo Cars are still good cars after all… Hope the same for Saab ! 

  6. Logically, I think the Chinese owners will want to manufacture the forthcoming new range of Saab cars, in China, on the so-called Phoenix platform. Therefore the New Saab 93 may well be made in China, or possibly as well as in Trollhattan. Considering that the American axle manufacturer AAM is I believe having its electric axle plant  built not far from Trollhattan, this could be one factor in keeping the whole show in Sweden. Like it or not, Saab hybrids are definitely on the way. Certainly diesel-electrics and probably petrol-electrics too. Of course , for the time-being the New 95 saloon and estate will be made in Trollhattan.

  7. having tried to negotiate a number of business deals for a number of years with the Chinese I see the same old story emerging. Regretfully the money will just not materialise.Looking at the press release and from bitter experience. Saab have achieved nothing, its just a memorandum and nothing is ever cast in stone its always changed at the next round of negotiations. I’m afraid Saab will go the same way as Rover and the Chinese will pick at the bones after bankruptcy has been declared. R.I.P a very good name. 

    1. I know we’re not there yet, but the Pang Da/Youngman tie-up does seem to have been quite serious so far. I know there are various hurdles still to be overcome, and that Saab will not be technically safe and secure until the deal is fully clear, signed, and most importantly of all, a big enough slice of capital is made available to solve the immediate financial concerns. I really hope you will be proved wrong, Sammysaab, and that the Chinese Companies will not be allowed to get Something for nothing. If this happens, the Swedish Government will have a lot to answer for.

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