By on September 12, 2011

The white-collar unions Unionen and Ledarna filed bankruptcy petitions today against Saab, everybody from Associated Press  to inside.saab reports.  On the same day, Saab announced that it had licensed its PhoeniX architecture to China’s Youngman at firesale prices – a move that could possibly buy another month or two. But first things first:

The Vanersborg District Court confirmed that Unionen and Ledarna took bankruptcy action against Saab, and that a bankruptcy hearing will be held within three weeks. According to a court spokesperson, Saab has to prove at the hearing that it has the money to pay the bills. Alternatively it can delay things for another two weeks if it can show that money is on its way.

Saab can avert bankruptcy by having its bankruptcy protection application approved on appeal, or by finding new money before the bankruptcy hearing. If not: BANKRUPTCY.

Saab is nervously drumming the table, hoping for  a €245 million ($344 million) cash infusion from China’s Youngman and Pang Da. This  is hinging on approval from the National Development Reform Commission (NDRC) which is not famous for its swift action.

To tide Saab over once again, Victor Muller reached deep into his hat and found another rabbit: According to a press release, Saab sold a non-exclusive license of its PhoeniX platform to a Dutch Special Purpose Vehicle called Swedish Automobile coöperatief U.A. (SPV) for €70 million. A Special Purpose Vehicle is no car, it is a company created for a narrowly defined purpose, in this case to hold the  PhoeniX license. Apparently, this license is transferable. According to the release, “Youngman has also signed a technology license transfer agreement with the SPV on purchasing the license and providing a guarantee for its payment of the license.”  The price Youngman paid was not released, but something in the neighborhood of €70 million would be a good guess. Maybe a little more. Management fee.

Judging from the oblique language of the press release, this whole sale and licensing business is nothing else than a security for a loan that will probably be coming from Youngman. For €70 million, that’s bupkis in the car business, Youngman got its hands on technology that was scheduled to go retail by 2013. This is probably the first time a Chinese manufacturer gets plans and license to a car years before it goes on sale in the West. For only €70 million. Reuters isn’t completely convinced and writes that Saab “conjured up a promise of 70 million euros ($96 million) in vital financing.”

Those rabbits better have at it in the hat: Everybody who is owed anything will race to the bankruptcy court and file their claim. Looking at the mid-term balance sheet, there were liabilities of over €1.4 billion. Oooops. Someone have a rabbit farm?

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12 Comments on “Our Daily Saab: Bankruptcy Filing And A Hat Trick...”

  • avatar

    Given the nature of the previous discussions on this topic, I was actually wondering if it was going to be a ‘Gordie Howe’ hat trick…

    • 0 avatar

      A goal, an assist and a fight (won, of course).

      Then there was the way Gordie would retaliate. In the original six days, teams played each other at least a dozen times a year. If someone took a run at Howe, he’d take note. The first game or two, the guy who hit him would be on his guard, but Gordie wouldn’t retaliate. After the guy’s guard was down, Howe would go into the corner with his opponent and ride the guy’s head with his elbow into the fencing that was there before glass. Two players would skate into that corner but only Howe would skate away.

      I think that Gretsky and Lemieux didn’t have Gordie’s toughness. When he was on the ice, the Red Wings didn’t need an enforcer to protect him.

  • avatar

    The Chinese press, including Hong Kong, have speculated that all Youngman really wanted was the rights to the Phoenix architecture.
    For those who want Saab to survive, this could be a frightening development. So much now depends on the good will of Youngman, who, in case of bankruptcy, already have what they want. Just a thought.

  • avatar
    Paul W

    “The Vanersborg District Court confirmed that Unionen and Ledarna took bankruptcy action against Saab …”

    Which leaves the workers union, IF Metall, which instead negotiated a raise of 500 SEK for its members. How about that!

  • avatar

    In a weird “car”-mic twist the rental car I picked up last night for the week…

    2011 Saab 9-3 AWD 2.0T with 15K miles on the clock. Nice car. Feel like I’m driving a bit of automotive history with Saab on the death watch.

    • 0 avatar

      Who the hell is renting Saabs!? The rental car business hinges heavily on short- and mid-term resale value. Someone either got a firesale deal on shuttered dealer stock or else really mucked up…

    • 0 avatar

      Wow, that must be the first SAAB rental I’ve ever heard of. But then again, I don’t rent that often, even when I do, it’s usually through our corporate suppliers (Hertz and AVIS).

  • avatar

    Another day another Saab story. Time for a sobb story:

  • avatar

    You get weird stuff in the rental fleet. A few years back, the Car lot at Billings, MT was full of infiniti. We got a FX35 with the nice high po six cylinder. The massive Infiniti truck was also rented out. These weren’t special or custom….

    I don’t know if this addressed some production vs. sales issue, or was a “high speed real world conditions” test by Nissan. It sat nicely at 90 on the montanabahn, if thirsty.

    I had a 900 Classic Turbo. It was fast, frugal and well constructed for the time. The 9-3 (nee GM) was the same flavor, but the Classic was a few inches bigger in all dimensions, violating the unwritten car manufacturer’s rule that three inches of back seat room and front seat width cost an extra $10,000.00.

    The Classic was in many ways an “un car”, a spiritual twin to the Volvo 240. Shame about the transmissions though.

    The 9-3 lasted 180k, at which point I sold it. We still see it around town occasionally.

    Sadly, saab spent the last few years as the car you leased (few were bought-when GM stopped leasing them one of our local dealers went from 20 units a month to 2, per a claim in a local business newspaper) when you couldn’t or didn’t want to spend BMW/MB money but wanted something euro and different.

    • 0 avatar

      I think you get to see some of the more odd ball cars at the smaller rental places. I usually go through AVIS and Hertz (our corporate suppliers), I only ever see bog standard rentals (apart from the Hertz specials that is).

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