By on August 28, 2012

 

Part of Saab’s presumptive “quirky” image is a serious lack of funds.  Saab “bled red like a stuck pig” as Car & Driver so delicately put it. Saab was sold when GM ran out of money. Victor Muller didn’t have the funds, and Saab’s future owner, Made-in-China Swede Jiang Dalong also seems to suffer the cash flow problem that is so familiar to all who touch Saab.  The presumptive buyer has received an ultimatum by the bankruptcy administrators: Pay in full until Friday, or the deal is off.

Sweden’s Dagens Industri writes that the administrators had a meeting with NEVS chairman Karl-Erling Trogen last week to check where the money might be. DI figures that what they heard in the meeting “must have upset the administrators.”

Trogen is the freshly minted chairman of the freshly minted National Electric Vehicle Sweden AB (NEVS), Jiang Dalong’s company that was minted to take over the remaining assets of Saab. The purchase price has never been made public, but DI figures it to be in the neighborhood for $274 million. Those need to be on the table by Friday. So far, NEVS has only made a down payment of approximately $23 million, and the administrator wants the full monte now.

According to DI’s sources, Jiang Dalong has “problems with prospective financiers in Sweden, because the Saab brand is not included in the deal.” Jiang previously said that the Saab brand (which definitely was not part of the package) is not crucial to the deal. He also claimed that NEVS is backed by his rich Hong Kong company and the rich Japanese venture capital company “Sun Investment LLC.”  TTAC had doubts as to the financial wherewithal of both, we also could not find a “Sun Investment LLC” in Japan.

It does not surprise us that Jiang does not have the $274 million. It also does not surprise us that he needs Chinese backers, and it furthermore does not surprise us that they are getting cold feet. It would furthermore not surprise us if Jiang is a straw man for Chinese interests – who lost interest.

Even just-auto, so far one of the few remaining supporters of the Saab cause, has been led astray:

“Mystery continues to surround widespread speculation in Stockholm that National Electric Vehicle Sweden (NEVS) is about to pull the plug on its proposed buy-out of bankrupt Saab. NEVS has played a coy game for the past couple of months, constantly insisting to just-auto the deal for Saab would be completed “during this summer,” but rumours are now swirling around Sweden the agreement could collapse as early as this week.”

Just-auto’s favorite for who might come and pick up the pieces for really cheap when the NEV deal falls apart: Youngman.

 

 

 

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9 Comments on “Ultimatum: Pay Up, NEVS, Or The Saab Deal Is Off...”


  • avatar
    Detroit-X

    Isn’t this Saab saga something? How these rich dudes overestimate how much the world cares about buying a Saab is amazing. Is depressing.

  • avatar
    dejal1

    Let’s say NEVS coughs up the full $274 million. Now what? You have a building with an assembly line.

    You don’t have workers, you don’t have a product. If you go to the Saab fan boy site, most of the engineers have other found other jobs. How much money will it take to make something?

    Supposedly the Phoenix platform everyone wants is only 65% complete and can only be figured out if you know how to speak Klingon.

    Meanwhile Spyker + Youngman team up to build some ugly monstrosity.

  • avatar
    Polar Bear

    I translated the Swedish chef. He says “Dom grabbarna… Those dudes are not really rich. They are just dreamers who think their charm will somehow produce the money and they will own a cool car firm”.

    Turns out the Swedish chef is the most underestimated character on the Muppet Show.

  • avatar
    GS650G

    As long as the key is in the center console of whatever they come up with we can call it a SAAB.

  • avatar
    Polar Bear

    Poor Saab. They thought they were saved when GM took over. Oh well. I guess Western civilisation can survive without fighter-jet dashboards.

  • avatar
    -Cole-

    Lament Pontiac instead. Much more lamentable. Fuck SAAB

  • avatar

    Btw, according to LifeWithSaab: “which cites Svenska Dagbladet, truck developer and manufacturer Scania AB can not deny Saab Automobile the use of the Gripen (Griffin) emblem.

    Svenska Dagbladet has spoken to Henrik Klackenberg from Sweden’s National Archives. According Klackenberg, the Gripen emblem does not belong to Scania but has been in the possession of Malmö Municipality the last 500 years. As early as 1437, Malmö had a red griffin as a city emblem.

    In other words, it is not up to Scania to decide whether Saab Automobile can use the Gripen, it is up to Malmö Municipality or possibly the county of Skåne.”


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