October 28, 2011
A new light at the end of the tunnel for Saab? 0
Saab have been bought out and rescued by a Chinese company. Just seven months ago the company were facing the strong possibility of bankruptcy and closure. It was only a few months ago where production had to be halted with the company failing to pay suppliers.
It was sold by Chief Executive Victor Muller who is also chairman of Swedish Automobile, the parent company of Saab. The deal to originally purchase the company was completed just two years ago.
In a statement, he said that Saab are not in a very stable financial position. He was quoted to have said “This is very good news, Pang Da and Youngman will invest way more than the 240m Euros we had planned to invest, so Saab has now got the funding, the stability and the product portfolio it deserves.”
The sale hasn’t yet been officially confirmed as it still needs approval from the appropriate intuitional bodies.
As a result of production being halted earlier this year, Saab’s factory in Trollhaettan produced just 11,000 cars rather than the anticipated 80,000. Saab car production won’t be a problem any longer according to Muller with him saying the company will be able to “produce some 190,000 cars without much ado”.
Employees pay also came under scrutiny. Staff had not been paid their wages due to unstable finances. Muller said not only will staff be paid but will have their jobs secured too. A statement from him read “Workers will have their salaries paid and their jobs guaranteed for the future.”
The investment from the Chinese company is not only a life saver but consequently an amazing opportunity according to Muller. Gaining exposure to the largest car market in the world will help the company get back on its feet according to Muller. He said “This will give us access to the Chinese market. The largest car market in the world will become the second home market for Saab.”
On departing with the company, Muller had some very kind and proud words to say about his personal experience. “I’m proud that I managed to bring Saab into a safe port. I am proud that I have helped save an iconic carmaker.”