May 16, 2011
Is this an end to Saab’s troubles? 0
Troubled Swedish company Saab Automobile signed a tentative financing and import deal today with largest car distributor in China. Saab’s parent, the Dutch sports car maker Spyker Cars, and Pang Da Automobile Trade, signed the memorandum of understanding in Beijing.
Saab, one of Sweden’s biggest car producers has had dramatic and some unexpected changes in recent years. From financial struggles, near closure of the company, a takeover and a senior member of the company resigning it would be an understatement to say that there have been some unwelcome events occurring recently for the company.
Troubles were highlighted in 2009 when the company were in severe financial trouble and were struggling to find a buyer. In late 2009, Koenigsegg fellow Swedish car manufacturers walked away at the last minute from a potential takeover. This left the company stranded and wondering what to do next.
Later on during the year General Motors announced that a buyer had not been found for the company, sadly meaning Saab was expected to shut down. This was at the time the only option for General Motors, as the Saab had been bankrupt since Spring of 2009 and each day the company was left open was costing General Motors too much for it to keep on running.
However in January 2010 a takeover deal was announced from Dutch sports car maker Spyker, who bought Saab from General Motors. The company then changed the name from Saab to Saab Spyker Automobiles. General Motors were in reality still involved with a share but this only amounts to less than 1% of the voting rights. The takeover was hailed as great news for Saab fans worldwide and for the future of the company at the time.
Again in April 2011, there was more downbeat news. It was reported that the Trolhattan plant in Sweden had halted production. This was an obvious passed on effect from a failure to pay suppliers. It was been sounded out that the company is in need of extra investment to sort their liquidity problems.
Though the new deal with Pang Da automobile remains subject to the approval of the European Investment Bank and the Swedish authorities, all the Saab fans around the world hope this would bring an end to company’s financial troubles.
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