Law and Rights
Cash-shy Swedish carmaker Saab is still out panhandling it seems, but maybe things are looking more hopeful.
After the Russian banker (Vladimit Antonov) fell through, after the Chinese company (Hawtai) didn't happen, now they're on to "door #3" as Monty Hall might have said under similar circumstances on his "Let's Make a Deal" tv show.
This time it's Pang Da Automobile, according to Automotive News. The Chinese dealership chain that apparently is talking about a $150-155 million deal that would give Saab enough money to reopen its idled assembly plant (it's been closed over 45 days now) and give Pang Da sales rights in China plus 24% (originally announced as 29.9%) of the Saab company.
Rumor was that Saab was talking with several Chinese companies, looking for that apparently elusive white knight with cash, and Pang Da is no slouch. They just pulled off a billion dollar IPO that was the second largest Chinese IPO this year. Cash? They got it alright. But is it enough?
Saab is calling it "medium term funding" which has to make you wonder what long term funding would mean. Still, the Chinese company is a dealership chain so their initial talks give them a chance to buy 40 million euros worth of vehicles immediately, which will line Saab's pockets for at least a little while, during which all the rest of the ducks can be put in a row to finalize the "memorandum of understanding" that the two corporations have signed.
Meanwhile, if you are in the market to buy a new or used car, think twice before you buy Saab. Here today, gone tomorrow could mean "stuck" for you. On the other hand, maybe you'll get a heck of a deal on that used Saab?
Subscribe in a reader
- Is Saab About To Disappear? Bankruptcy "just Hours Away" Swedish Press Says
Once upon a time, Saab was a shining star in the sea of vehicles GM built or had a hand in building. Now, with Swedish creditors pounding on the doors and Swedish employees unpaid, the factory shuttered in Sweden (although the one in Mexico has its doors...
- Saab Files For Court Protection - Is That Water Going Down The Drain I Hear?
Saab finally got to the point where the roof was going to cave in (economically) so they filed for court protection from creditors in Sweden - something akin to a bankruptcy reorganization filing sort of. It protects them from creditor collection efforts...
- Saab Troubles Continue As Asset Seizure Nears
It's a sad story for Saab owners around the world. The only vehicle actually being built right now is reportedly just the 9-4X Suv model with the rest of the Saab model line on hold while every day is undoubtedly causing heartburn in the board room....
- Chinese Buy Control Of Saab - Well, They Own Everything Else Already Anyway, Right?
Swedish car maker Saab has been struggling for months to survive - in fact, ever since GM dumped them after the GM bankruptcy - and things are still shaky, but now there's a white knight investor to the rescue. Well, actually a Chinese knight, sort...
- Saab Opens Manufacturing Plant - And Gets Shut Down Again - It Just Never Ends
Saab just can't seem to get it up and running as the money continues to run out. Last month it made a deal with China's largest dealer network that promised to refuel the Swedish automaker with badly needed funds to reopen its plant, according...
Law and Rights
For Saab, what's behind door #2? or is it #3? Survival?
Cash-shy Swedish carmaker Saab is still out panhandling it seems, but maybe things are looking more hopeful.
After the Russian banker (Vladimit Antonov) fell through, after the Chinese company (Hawtai) didn't happen, now they're on to "door #3" as Monty Hall might have said under similar circumstances on his "Let's Make a Deal" tv show.
This time it's Pang Da Automobile, according to Automotive News. The Chinese dealership chain that apparently is talking about a $150-155 million deal that would give Saab enough money to reopen its idled assembly plant (it's been closed over 45 days now) and give Pang Da sales rights in China plus 24% (originally announced as 29.9%) of the Saab company.
Rumor was that Saab was talking with several Chinese companies, looking for that apparently elusive white knight with cash, and Pang Da is no slouch. They just pulled off a billion dollar IPO that was the second largest Chinese IPO this year. Cash? They got it alright. But is it enough?
Saab is calling it "medium term funding" which has to make you wonder what long term funding would mean. Still, the Chinese company is a dealership chain so their initial talks give them a chance to buy 40 million euros worth of vehicles immediately, which will line Saab's pockets for at least a little while, during which all the rest of the ducks can be put in a row to finalize the "memorandum of understanding" that the two corporations have signed.
Meanwhile, if you are in the market to buy a new or used car, think twice before you buy Saab. Here today, gone tomorrow could mean "stuck" for you. On the other hand, maybe you'll get a heck of a deal on that used Saab?
Burdge Law Office
www.USLemonLawyers.com
Ready to help you get rid of your lemon car
www.USLemonLawyers.com
Ready to help you get rid of your lemon car
Subscribe in a reader- Is Saab About To Disappear? Bankruptcy "just Hours Away" Swedish Press Says
Once upon a time, Saab was a shining star in the sea of vehicles GM built or had a hand in building. Now, with Swedish creditors pounding on the doors and Swedish employees unpaid, the factory shuttered in Sweden (although the one in Mexico has its doors...
- Saab Files For Court Protection - Is That Water Going Down The Drain I Hear?
Saab finally got to the point where the roof was going to cave in (economically) so they filed for court protection from creditors in Sweden - something akin to a bankruptcy reorganization filing sort of. It protects them from creditor collection efforts...
- Saab Troubles Continue As Asset Seizure Nears
It's a sad story for Saab owners around the world. The only vehicle actually being built right now is reportedly just the 9-4X Suv model with the rest of the Saab model line on hold while every day is undoubtedly causing heartburn in the board room....
- Chinese Buy Control Of Saab - Well, They Own Everything Else Already Anyway, Right?
Swedish car maker Saab has been struggling for months to survive - in fact, ever since GM dumped them after the GM bankruptcy - and things are still shaky, but now there's a white knight investor to the rescue. Well, actually a Chinese knight, sort...
- Saab Opens Manufacturing Plant - And Gets Shut Down Again - It Just Never Ends
Saab just can't seem to get it up and running as the money continues to run out. Last month it made a deal with China's largest dealer network that promised to refuel the Swedish automaker with badly needed funds to reopen its plant, according...