It’s silly, but Swedish automotive manufacturer, Saab just won’t die. For months now, the world has watched the spectacle surrounding Saab as they desperately sought new investors, then denied them, then approved a buy-out, then GM denied them and so on in that fashion. Well, last week it was made clear to Saab that the Swedish courts would judge them by Friday. They had no money, their last submitted proposal for Chinese investors was rejected by GM again and they owed millions of dollars worth of wages to their employees. Today, however, Saab received a $5 million investment from Zhejiang Youngman Lotus Automobile, one of two proposed Chinese investors.
This move was to solve Saab’s immediate tax issue and according to an article on Reuters.com, Youngman is set to give Saab another 20 million euros by tomorrow. That money will go to paying the owed salaries of Saab’s several thousand employees. With that out of the way, Saab will be better positioned to face the courts come Friday. Still, Saab was almost entirely out of funds yesterday, so it’s hard to see how $5 million will make a difference. That is why, Yougman is reported to be handing over another 10 million euros by the end of December. That could, theoretically, keep them afloat until they can get GM to approve Youngman’s acquisition of Saab. The reason GM continues to reject this deal is because they feel it would hurt them in the Asian market and replace them the primary parts and technology provider for Saab.
It is fun to see how Saab continues to stay alive while constantly hanging in that place of business limbo. For those Saab is in debt to, the same cannot be said. Saab has failed to pay off their debts for some time now, shielded by court order creditor protection. That could end by this week, which would leave Saab circled by all it’s creditors with nowhere to hide. It seems, however, that Youngman Lotus has taken a keen interest in Saab and would likely prevent that from happening while taking hold of the company reins. We’d be lying if we said we weren’t engaged in where this story will eventually end up.
Tyler Baker; OSM Writer
( Source : Reuters.com )