The Saab farce continues. Now for a third time, Chinese Zhejiang Youngman Lotus Automobile makes a comeback. In the suitcase Youngman has a SEK 4 billion bid on Saab.
"Our revised bid is for every part of the Saab bankruptcy estate, including the spare parts company. An our offer means that the government and the National Debt Office get full compensation for their debt in the bankruptcy, which means SEK 2.2 billion. Youngman also has provided evidence that the money is available," said Youngman's spokesman in Sweden, Johan Nylén said to TT.
Nylén dismissed claims that Youngman would be out of the picture with regards to buying Saab.
"Quite the opposite. Youngman has now accelerated its ambition to buy Saab and start production as soon as possible. We have had ongoing contact with the administrators and we now hope to be entering into intensive negotiations," Nylén said.
The bid of SEK 4 billion should according to Nylén be the highest bid received by the administrators.
"Youngman is convinced that it has placed the highest bid, and it has proved to have access to the money and so Youngman should be in a good position as the purpose is that the creditors get back as much as possible of their money."
According to Nylén, Youngman has received a "letter of acknowledgment" from the Chinese National Development and Reform Commission, which says that Youngman is the only Chinese company which can buy Saab's assets.
A blog fueled by enthusiasm about Saab, the greatest car company between the North and the South Pole. And their cars, which probably is the only cars that would start on a cold and crispy South Pole morning.
Showing posts with label China. Show all posts
Showing posts with label China. Show all posts
Saturday, June 9, 2012
Wednesday, June 6, 2012
Swede behind National Electric Vehicle Sweden
If China and Japan weren't exotic enough, local Trollhättan newspaper TTELA now reports that the consortium behind National Electric Vehicle Sweden (NEVS) even has ties to the British Virgin Islands. NEVS is of course the company that wants to acquire the assets of bankrupt Saab Automobile.
TTELA has investigated the ownership structure behind National Modern Energy Holdings, which owns 51 percent of National Electric Vehicle Sweden, and found that National Modern Energy Holdings is actually registered in the British Virgin Islands and not in Hong Hong as previously stated by NEVS. The company which owns National Modern Energy Holdings is however the Hong Hong based company Dragon Base Holdings. To make things interesting, when looking into these companies TTELA found that the Swede Kai Johan Jiang is the principle owner of the group of companies and has been appointed CEO of NEVS.
Furthermore, the top economic planning body in China, the National Development and Reform Comission, which has to approve all considerable Chinese investments abroad, will have no say in a possible acquistion of Saab by National Electric Vehicle Sweden since Kai Johan Jiang is a Swede.
According to Wikipedia, Kai Johan Jiang, born in China's Shandong province in 1965, founded State Power Group in China in 2004. State Power Group is a Chinese energy corporation doing business in substainable energy sources, primarily biomass, including bio ethanol. In 2008 he was awarded Emerging Entrepreneur Of The Year by Ernst & Young in China.
"Our R&D branches in Europe are now involved in developing the second generation of biomass ethanol technology. In the future, straw will first be used to extract biomass ethanol, then burned to generate power," Jiang told Knowledge@Wharton in an interview from March 2010.
With such an interest in biomass ethanol, one would think that NEVS if acquiring Saab would also be interested in continued production of Biopower Saabs in Trollhättan?
And Jiang is no stranger to the automotive industry. From 1993 to 2000 he worked for Volvo Group.
"Before entering biomass energy in 2002, I was a senior adviser for Volvo. I made the switch after consulting with my colleague, Karl Erling Trogen - who is now a director on our board - about which industry had a bright future. We agreed that environmental sustainability was a key to a robust future for the planet and decided to establish a world-leading company in renewable energy, choosing biomass power as our main focus. In China, most farmers burn straw as unwanted waste, but the caloric value of the amount of straw burned each year is the equivalent of 500 million tons of standard coal," Jiang said to Knowledge@Wharton.
The colleague Jiang mentions, Karl Erling Trogen, is a name we have already become familiar with the past weeks when NEVS was registered in Sweden with Trogen as the only member of the board. And just like Jiang also Karl-Erling Trogen has a past career from the automotive industry as former CEO of Volvo Trucks.
One big question is however if Jiang has the needed money to buy and make Saab profitable, or if bringing the money to the table is the role of the Japanese venture-capital firm Sun Investment. According to the interview with Knowledge@Wharton, Jiang's State Power Group was not making any money as of 2010.
Let's end this entry about Kai Johan Jiang with some words from him about his passion for working with substainable energy:
"I rarely take weekends off and work hard every day. I’m passionate about what I am doing, and my colleagues share this enthusiasm. The vision that one plant can create thousands of jobs and benefit tens of thousands of farmers is incredibly inspiring.
My philosophy is that if a business benefits both society and the environment, that business will be successful eventually. Senior officials in the country have recognized the significance of developing biomass energy. Today, biomass energy in China benefits farmers and the environment."
TTELA has investigated the ownership structure behind National Modern Energy Holdings, which owns 51 percent of National Electric Vehicle Sweden, and found that National Modern Energy Holdings is actually registered in the British Virgin Islands and not in Hong Hong as previously stated by NEVS. The company which owns National Modern Energy Holdings is however the Hong Hong based company Dragon Base Holdings. To make things interesting, when looking into these companies TTELA found that the Swede Kai Johan Jiang is the principle owner of the group of companies and has been appointed CEO of NEVS.
Furthermore, the top economic planning body in China, the National Development and Reform Comission, which has to approve all considerable Chinese investments abroad, will have no say in a possible acquistion of Saab by National Electric Vehicle Sweden since Kai Johan Jiang is a Swede.
According to Wikipedia, Kai Johan Jiang, born in China's Shandong province in 1965, founded State Power Group in China in 2004. State Power Group is a Chinese energy corporation doing business in substainable energy sources, primarily biomass, including bio ethanol. In 2008 he was awarded Emerging Entrepreneur Of The Year by Ernst & Young in China.
"Our R&D branches in Europe are now involved in developing the second generation of biomass ethanol technology. In the future, straw will first be used to extract biomass ethanol, then burned to generate power," Jiang told Knowledge@Wharton in an interview from March 2010.
With such an interest in biomass ethanol, one would think that NEVS if acquiring Saab would also be interested in continued production of Biopower Saabs in Trollhättan?
And Jiang is no stranger to the automotive industry. From 1993 to 2000 he worked for Volvo Group.
"Before entering biomass energy in 2002, I was a senior adviser for Volvo. I made the switch after consulting with my colleague, Karl Erling Trogen - who is now a director on our board - about which industry had a bright future. We agreed that environmental sustainability was a key to a robust future for the planet and decided to establish a world-leading company in renewable energy, choosing biomass power as our main focus. In China, most farmers burn straw as unwanted waste, but the caloric value of the amount of straw burned each year is the equivalent of 500 million tons of standard coal," Jiang said to Knowledge@Wharton.
The colleague Jiang mentions, Karl Erling Trogen, is a name we have already become familiar with the past weeks when NEVS was registered in Sweden with Trogen as the only member of the board. And just like Jiang also Karl-Erling Trogen has a past career from the automotive industry as former CEO of Volvo Trucks.
One big question is however if Jiang has the needed money to buy and make Saab profitable, or if bringing the money to the table is the role of the Japanese venture-capital firm Sun Investment. According to the interview with Knowledge@Wharton, Jiang's State Power Group was not making any money as of 2010.
Let's end this entry about Kai Johan Jiang with some words from him about his passion for working with substainable energy:
"I rarely take weekends off and work hard every day. I’m passionate about what I am doing, and my colleagues share this enthusiasm. The vision that one plant can create thousands of jobs and benefit tens of thousands of farmers is incredibly inspiring.
My philosophy is that if a business benefits both society and the environment, that business will be successful eventually. Senior officials in the country have recognized the significance of developing biomass energy. Today, biomass energy in China benefits farmers and the environment."
Friday, June 1, 2012
SEK 1.5 billion VS SEK 4 billion
In the right corner weighing in at SEK 4 billion, from China... Zhejiang Youngman Lotus Automobile!
In the left corner weighing in at SEK 1.5 billion, National Electric Vehicle Sweden!
Let's get ready to rumble!
Today is the first day of June and we still have no word on a deal to sell the Saab bankruptcy estate. Earlier this week it looked like the electric car consortium, through its newly registered Swedish company National Electric Vehicle Sweden, would be the new owner of Saab. Reports say that NEVS is still the favorite, but the negotiations seem to have run into some challenges.
One challenge could be the price NEVS is offering. Reports say that it could be as little as SEK 1.5 billion. The offer does however not include Saab Automobile Parts. Offering a great deal more and wanting to buy also Saab Parts is Youngman. Their offer is said to be SEK 4 billion. The administrators main task is to raise as much money as possible so that the bankruptcy estate can pay its creditors as much as possible. And so the administrators can not simply brush aside a SEK 4 billion bid from Youngman. But the bankruptcy administrators require cash payment when a deal is signed, and Youngman must prove that the money is available for immediate payment.
To make the job to reach a deal even more complex, Svenska Dagbladet today reports that a number of deals made by Saab's former parent company, Spyker Cars, on behalf of Saab, must be sorted out before a sale can be done. And that is why Victor Muller came to Sweden earlier this week.
But that's not all. According to Svenska Dagbladet, also Saab's former head of design, Jason Castriota, is said to have some interest in what's going on in Trollhättan now. When he took the job as head designer at Saab and designed the Saab 9-3 replacement, he made a deal with Saab that he would get royalty payments for every Saab 9-3 sold. And now this also has to be worked out before a sale of Saab can be done.
In other words, there seem to be enough challenging questions left to make the administrators workday hectic.
In the left corner weighing in at SEK 1.5 billion, National Electric Vehicle Sweden!
Let's get ready to rumble!
Today is the first day of June and we still have no word on a deal to sell the Saab bankruptcy estate. Earlier this week it looked like the electric car consortium, through its newly registered Swedish company National Electric Vehicle Sweden, would be the new owner of Saab. Reports say that NEVS is still the favorite, but the negotiations seem to have run into some challenges.
One challenge could be the price NEVS is offering. Reports say that it could be as little as SEK 1.5 billion. The offer does however not include Saab Automobile Parts. Offering a great deal more and wanting to buy also Saab Parts is Youngman. Their offer is said to be SEK 4 billion. The administrators main task is to raise as much money as possible so that the bankruptcy estate can pay its creditors as much as possible. And so the administrators can not simply brush aside a SEK 4 billion bid from Youngman. But the bankruptcy administrators require cash payment when a deal is signed, and Youngman must prove that the money is available for immediate payment.
To make the job to reach a deal even more complex, Svenska Dagbladet today reports that a number of deals made by Saab's former parent company, Spyker Cars, on behalf of Saab, must be sorted out before a sale can be done. And that is why Victor Muller came to Sweden earlier this week.
But that's not all. According to Svenska Dagbladet, also Saab's former head of design, Jason Castriota, is said to have some interest in what's going on in Trollhättan now. When he took the job as head designer at Saab and designed the Saab 9-3 replacement, he made a deal with Saab that he would get royalty payments for every Saab 9-3 sold. And now this also has to be worked out before a sale of Saab can be done.
In other words, there seem to be enough challenging questions left to make the administrators workday hectic.
Wednesday, May 30, 2012
Youngman won't give up on Saab, places new bid
Chinese Zhejiang Youngman Lotus Automobile, which has been trying to buy Saab for over a year, has now placed a renewed and better bid on the Saab bankruptcy estate. This according to local Trollhättan newspaper TTELA.
Last week reports came through Swedish media that Youngman had been dropped as a bidder by the bankruptcy administrators. In from the wing came a dark horse later identified as National Electric Vehicle Sweden, a company owned by a Japanese-Chinese consortium.
The past week National Electric Vehicle Sweden has been reported to be the favorite to acquire Saab. According to one report from Svenska Dagbladet, the deal was ready to be signed last weekend but was delayed or stopped for unknown reasons. Sources say that it was the Swedish National Debt Office (NDO) which stopped the deal from being closed on Sunday. Back in 2010 when Saab took a SEK 2.2 billion loan in the European Investment Bank (EIB), the NDO guaranteed the loan and took the shares in Saab Automobile Parts as collateral. Shortly after Saab filed for bankruptcy in December 2011, the NDO redeemed the loan and thus more or less took ownership of Saab Parts.
One might speculate that the NDO stopped the deal with National Electric Vehicle Sweden last weekend because National Electric Vehicle Sweden has no interest in Saab Parts and is therefore unwilling to buy the company from the NDO. Chinese Youngman, on the other hand, is interested in acquiring all of the Saab companies, including Saab Parts, and a sale to Youngman would therefore guarantee that the NDO recovers the money it paid when redeeming Saab's loan in the EIB.
With Chinese Youngman reentering the scene with a renewed and better bid, the NDO might see the possibility of a hassle free and quick sale of Saab Parts. As opposed to using lots of time and money to find new owners for Saab Parts.
Youngman's latest bid is said to be of a considerable amount and the money is said to be available in Europe. According to Dagens Industri, Youngman is willing to pay SEK 4 billion in total, including SEK 2.2 billion for Saab Parts. Dagens Industri also reports that one reason that the deal with National Electric Vehicle Sweden was not reached last weekend, was because the buyers tried to negotiate the price down. So just maybe the Youngman bid is an offer too good to refuse for both the administrators and the NDO?
Last week reports came through Swedish media that Youngman had been dropped as a bidder by the bankruptcy administrators. In from the wing came a dark horse later identified as National Electric Vehicle Sweden, a company owned by a Japanese-Chinese consortium.
The past week National Electric Vehicle Sweden has been reported to be the favorite to acquire Saab. According to one report from Svenska Dagbladet, the deal was ready to be signed last weekend but was delayed or stopped for unknown reasons. Sources say that it was the Swedish National Debt Office (NDO) which stopped the deal from being closed on Sunday. Back in 2010 when Saab took a SEK 2.2 billion loan in the European Investment Bank (EIB), the NDO guaranteed the loan and took the shares in Saab Automobile Parts as collateral. Shortly after Saab filed for bankruptcy in December 2011, the NDO redeemed the loan and thus more or less took ownership of Saab Parts.
One might speculate that the NDO stopped the deal with National Electric Vehicle Sweden last weekend because National Electric Vehicle Sweden has no interest in Saab Parts and is therefore unwilling to buy the company from the NDO. Chinese Youngman, on the other hand, is interested in acquiring all of the Saab companies, including Saab Parts, and a sale to Youngman would therefore guarantee that the NDO recovers the money it paid when redeeming Saab's loan in the EIB.
With Chinese Youngman reentering the scene with a renewed and better bid, the NDO might see the possibility of a hassle free and quick sale of Saab Parts. As opposed to using lots of time and money to find new owners for Saab Parts.
Youngman's latest bid is said to be of a considerable amount and the money is said to be available in Europe. According to Dagens Industri, Youngman is willing to pay SEK 4 billion in total, including SEK 2.2 billion for Saab Parts. Dagens Industri also reports that one reason that the deal with National Electric Vehicle Sweden was not reached last weekend, was because the buyers tried to negotiate the price down. So just maybe the Youngman bid is an offer too good to refuse for both the administrators and the NDO?
Thursday, May 24, 2012
National Electric Vehicle Sweden confirms bid on Saab
Yesterday the news broke that the Japanese-Chinese consortium interested in acquiring Saab has registered a company in Sweden named National Electric Vehicle Sweden. Now Mattias Bergman, spokesman of the company, confirms a bid on Saab.
"We can confirm that we are a bidder and that we are still interested in the assets of Saab," Mattias Bergman told Swedish news agency TT.
"We will at the present not publicize our business plan. We are interested in what the brand name stands for, the high competence of Saab and the plant facilities which are world class," Mattias Bergman continued.
"We will get back to the business plan and the number of employees needed in due time."
The consortium consists of the Chinese energy corporation National Modern Energy Holdings and the Japanese risk capital firm Sun Investment.
"They are the principal owners. There are other owners which we will not name at the moment," Bergman said.
Sun Investment is a Japanese venture capital firm which was established four years ago and which invests in renewable energy. The Chinese company National Modern Energy Holdings is part of the concern National Bio Energy, which is Hong Kong based and has 7,000 employees. The corporation owns power plants in China and is focusing towards bioenergy.
"We can confirm that we are a bidder and that we are still interested in the assets of Saab," Mattias Bergman told Swedish news agency TT.
"We will at the present not publicize our business plan. We are interested in what the brand name stands for, the high competence of Saab and the plant facilities which are world class," Mattias Bergman continued.
"We will get back to the business plan and the number of employees needed in due time."
The consortium consists of the Chinese energy corporation National Modern Energy Holdings and the Japanese risk capital firm Sun Investment.
"They are the principal owners. There are other owners which we will not name at the moment," Bergman said.
Sun Investment is a Japanese venture capital firm which was established four years ago and which invests in renewable energy. The Chinese company National Modern Energy Holdings is part of the concern National Bio Energy, which is Hong Kong based and has 7,000 employees. The corporation owns power plants in China and is focusing towards bioenergy.
Wednesday, May 23, 2012
Youngman out, National Electric Vehicle Sweden in?
And then there were one (or two, or three?). Reports in Swedish media say that Chinese Zhejiang Youngman Lotus Automobile now has been (or has willingly) dropped out of the race to buy the Saab bankruptcy estate.
Sources say that the reason for the Youngman drop out is uncertainty about payments from Youngman since all major payments needs Government approval. Youngman then follows Turkish Brightwell Holdings which dropped out in February.
This development would mean that we now are left with only mystery bidders. Indian Mahindra, which many times has been mentioned as a bidder, has never confirmed placing a bid on Saab within the final deadline. In addition, there might be one or two other bidders. One of these a consortium interested in starting electric car production.
On Monday the company National Electric Vehicle Sweden was registered in Sweden. The purpose of the company is "development of electric vehicles and vehicle components and related business." Member of the board of this new companys is among others Karl-Erling Trogen, a former CEO of Volvo Trucks.
"It's not just about electric cars, but also about larger volumes of hybrid cars related to a long term development in electric cars," a source said.
It is suggested that the consortium no longer includes Panasonic, but now a Chinese car maker, which could be BAIC, a Chinese battery maker and Swedish stakeholders.
But why shouldn't also this Chinese consortium run into problems with getting payments approved just like Youngman? Well, according to Swedish Radio P4 Väst, the consortium has its financing from outside China. Which of course also points to other stakeholders in he consortium besides Chinese companies.
If this consortium wins the battle, then it is bye bye to the Saab we know. It's said that they will probably not want the Saab Parts company, which would mean that they are not interested in the Saab cars presently on the roads. Maybe not even the Saab brand name.
Sources say that the reason for the Youngman drop out is uncertainty about payments from Youngman since all major payments needs Government approval. Youngman then follows Turkish Brightwell Holdings which dropped out in February.
This development would mean that we now are left with only mystery bidders. Indian Mahindra, which many times has been mentioned as a bidder, has never confirmed placing a bid on Saab within the final deadline. In addition, there might be one or two other bidders. One of these a consortium interested in starting electric car production.
On Monday the company National Electric Vehicle Sweden was registered in Sweden. The purpose of the company is "development of electric vehicles and vehicle components and related business." Member of the board of this new companys is among others Karl-Erling Trogen, a former CEO of Volvo Trucks.
"It's not just about electric cars, but also about larger volumes of hybrid cars related to a long term development in electric cars," a source said.
It is suggested that the consortium no longer includes Panasonic, but now a Chinese car maker, which could be BAIC, a Chinese battery maker and Swedish stakeholders.
But why shouldn't also this Chinese consortium run into problems with getting payments approved just like Youngman? Well, according to Swedish Radio P4 Väst, the consortium has its financing from outside China. Which of course also points to other stakeholders in he consortium besides Chinese companies.
If this consortium wins the battle, then it is bye bye to the Saab we know. It's said that they will probably not want the Saab Parts company, which would mean that they are not interested in the Saab cars presently on the roads. Maybe not even the Saab brand name.
Tuesday, May 22, 2012
New undisclosed Chinese company wants Saab
According to Swedish business newspaper Dagens Industri, a new and yet undisclosed Chinese company has entered the battle to win Saab.
"It's correct that for the last two weeks there have been four parties interested in the Saab business," said Lars Holmqvist, former head of the European suppliers association CLEPA to DI.
The four interested parties would be Chinese Zhejiang Youngman Lotus Automobile, Indian Mahindra & Mahindra, a Chinese-Japanese consortium with unknown stakeholders and now the latest bidder, an undisclosed Chinese company.
"I do not know how serious they are. I still believe that Chinese Youngman is in the lead seeing that they have already invested money in Saab," Holmqvist told Swedish news agency TT.
Speculations have it that this new indisclosed party could be Chinese Qoros Auto. Qoros is a new car brand aiming to launched their first car at the Geneva Motor Show next year. It has been said that the cars will be produced by Magna Steyr, but if the company acquires Saab in Trollhättan, that could change.
We have reported earlier here on Life with Saab that a number of former Saab executives, managers and engineers have actually been hired by Qoros. And that would of course mean that Qoros now has a good understanding of the values and possibilities in the Saab bankruptcy estate.
Qoros also has hired former people from Volvo, BMW and Volkswagen, and the company seem to be serious about entering the European market with competitive vehicles.
DI's sources say that the administrators may start negotiations with the new stakeholder should the talks with Mahindra and Youngman break down.
Interesting days a head!
"It's correct that for the last two weeks there have been four parties interested in the Saab business," said Lars Holmqvist, former head of the European suppliers association CLEPA to DI.
The four interested parties would be Chinese Zhejiang Youngman Lotus Automobile, Indian Mahindra & Mahindra, a Chinese-Japanese consortium with unknown stakeholders and now the latest bidder, an undisclosed Chinese company.
"I do not know how serious they are. I still believe that Chinese Youngman is in the lead seeing that they have already invested money in Saab," Holmqvist told Swedish news agency TT.
Speculations have it that this new indisclosed party could be Chinese Qoros Auto. Qoros is a new car brand aiming to launched their first car at the Geneva Motor Show next year. It has been said that the cars will be produced by Magna Steyr, but if the company acquires Saab in Trollhättan, that could change.
We have reported earlier here on Life with Saab that a number of former Saab executives, managers and engineers have actually been hired by Qoros. And that would of course mean that Qoros now has a good understanding of the values and possibilities in the Saab bankruptcy estate.
Qoros also has hired former people from Volvo, BMW and Volkswagen, and the company seem to be serious about entering the European market with competitive vehicles.
DI's sources say that the administrators may start negotiations with the new stakeholder should the talks with Mahindra and Youngman break down.
Interesting days a head!
Friday, April 20, 2012
A Chinese reincarnation of the Saab 9-5
Back in 2009 Beijing Auto Works bought the old Saab 9-5 technology (1998-2010) from Saab/GM to be used in several coming vehicles from BAIC. The first one being the BAIC C70. Many spy photos have since emerged. Photos that have worried Saab fans because the BAIC cars have looked like exact copies of the Saabs they are based on. But now we finally have the pictures of the production ready BAIC C70G. And I am pleased to say that it looks quite different from the old Saab 9-5 which it is based on.
More pictures at Car News China.
More pictures at Car News China.
Monday, April 16, 2012
Youngman prepared to invest SEK 20 billion in Saab
Updated 22:22
One of the bidders on the Saab bankruptcy estate is Chinese Youngman. Earlier the company has confirmed placing an indicative bid, and now Youngman's spokesman Johan Nylén confirms that the Chinese company has also placed a definite bid on Saab.
"There is a number of bidders left. Youngman's interest remains. We are still one of the bidders," Johan Nylén told Dagens Industri.
Johan Nylén would however not comment on how much Youngman is prepared to pay for Saab, but he did say how much Youngman believes a restart of Saab will cost.
"To restart the production we estimate the cost to be SEK 10 billion," Nylén said.
Furthermore, Nylén dismissed rumors claiming that Youngman is only interested in acquiring Saab for the technology to be used in vehicle production in China.
"That is absolutely not correct. The entire business plan is based on production taking place in Trollhättan," Nylén said.
"Realistically, a fairly slow start and then go up into larger volumes," he continued. The production would be of the current Saab 9-3 and possibly Lotus cars, while the technology for the next generation Saab cars is being finalized.
Nylén also said that Youngman is prepared to invest SEK 20 billion over a period of five years in order to implement their business plan for Saab.
In addition to Youngman, also Indian Mahindra has been mentioned as a possible bidder. When commenting on other bidders, Nylén said that Youngman believes that Mahindra is in fact one of the bidders.
"It would be Mahindra. But Youngman is probably the only one of the bidders who have the ambition to have continued production in Trollhättan."
One of the bidders on the Saab bankruptcy estate is Chinese Youngman. Earlier the company has confirmed placing an indicative bid, and now Youngman's spokesman Johan Nylén confirms that the Chinese company has also placed a definite bid on Saab.
"There is a number of bidders left. Youngman's interest remains. We are still one of the bidders," Johan Nylén told Dagens Industri.
Johan Nylén would however not comment on how much Youngman is prepared to pay for Saab, but he did say how much Youngman believes a restart of Saab will cost.
"To restart the production we estimate the cost to be SEK 10 billion," Nylén said.
Furthermore, Nylén dismissed rumors claiming that Youngman is only interested in acquiring Saab for the technology to be used in vehicle production in China.
"That is absolutely not correct. The entire business plan is based on production taking place in Trollhättan," Nylén said.
"Realistically, a fairly slow start and then go up into larger volumes," he continued. The production would be of the current Saab 9-3 and possibly Lotus cars, while the technology for the next generation Saab cars is being finalized.
Nylén also said that Youngman is prepared to invest SEK 20 billion over a period of five years in order to implement their business plan for Saab.
In addition to Youngman, also Indian Mahindra has been mentioned as a possible bidder. When commenting on other bidders, Nylén said that Youngman believes that Mahindra is in fact one of the bidders.
"It would be Mahindra. But Youngman is probably the only one of the bidders who have the ambition to have continued production in Trollhättan."
Saturday, March 31, 2012
Day of final bids
Today is the (unconfirmed) date set by the Saab bankruptcy administrators for the final bids on Saab. We should have some very interesting weeks coming. Which suitor will be chosen as preferred bidder? Which suitor(s) will give up on Saab?
One suitor has already dropped out. Turkish Brightwell Holdings dropped out at the end of February. Reason being General Motors reluctance to license technology to any new owner of Saab.
Two other suitors we know have a serious interest in Saab, are Chinese Zhejiang Youngman Lotus Automobile and Indian Mahindra & Mahindra. Youngman has been in the race to acquire Saab for almost a year now. First the company were looking to become partner and part owner of Saab, later sole owner. The company has been reported to have made a SEK 2 billion opening bid on Saab. A bid the Chinese were open to increase if needed. In addition, they are ready to invest SEK 12 billion in the development of new Saab models based on the Phoenix platform.
So far we have gotten no confirmation that Mahindra has made a bid. We just know that they have shown an interest. But according to TTELA and SR P4 Väst, the Indians have also placed a bid. Apart from that, we know very little about Mahindra's ambitions for Saab. But it is safe to assume that they are interested in the Phoenix platform.
One week ago we also got the reports that a Japanese-Chinese consortium has placed a bid on Saab. The reports say that this consortium plans to start producing electric cars and batteries in Trollhättan. According to just-auto, the Japanese-Chinese consortium plan initially to use the 9-3 as the base for an electric car. But the cars will not be branded as Saabs.
Sounds like a bad business case, doesn't it? But what makes it much more believabe and scary is that the Swedish government is said to be "heavily involved" in the discussions to sell Saab to this consortium. Several meetings are said to been held between the consortium, the Japanese government and the Swedish government.
So who will end up as new owner(s) of Saab?
According to a report in TTELA today, Indian Mahindra and the Japanese-Chinese consortium are the favorites. As always, these claims are based on unnamed sources and should be taken with a pinch of salt. But I know which of these two parties I want for new owner of Saab. Mahindra!
One suitor has already dropped out. Turkish Brightwell Holdings dropped out at the end of February. Reason being General Motors reluctance to license technology to any new owner of Saab.
Two other suitors we know have a serious interest in Saab, are Chinese Zhejiang Youngman Lotus Automobile and Indian Mahindra & Mahindra. Youngman has been in the race to acquire Saab for almost a year now. First the company were looking to become partner and part owner of Saab, later sole owner. The company has been reported to have made a SEK 2 billion opening bid on Saab. A bid the Chinese were open to increase if needed. In addition, they are ready to invest SEK 12 billion in the development of new Saab models based on the Phoenix platform.
So far we have gotten no confirmation that Mahindra has made a bid. We just know that they have shown an interest. But according to TTELA and SR P4 Väst, the Indians have also placed a bid. Apart from that, we know very little about Mahindra's ambitions for Saab. But it is safe to assume that they are interested in the Phoenix platform.
One week ago we also got the reports that a Japanese-Chinese consortium has placed a bid on Saab. The reports say that this consortium plans to start producing electric cars and batteries in Trollhättan. According to just-auto, the Japanese-Chinese consortium plan initially to use the 9-3 as the base for an electric car. But the cars will not be branded as Saabs.
Sounds like a bad business case, doesn't it? But what makes it much more believabe and scary is that the Swedish government is said to be "heavily involved" in the discussions to sell Saab to this consortium. Several meetings are said to been held between the consortium, the Japanese government and the Swedish government.
So who will end up as new owner(s) of Saab?
According to a report in TTELA today, Indian Mahindra and the Japanese-Chinese consortium are the favorites. As always, these claims are based on unnamed sources and should be taken with a pinch of salt. But I know which of these two parties I want for new owner of Saab. Mahindra!
Friday, March 23, 2012
Japanese-Chinese bid on Saab
According to Swedish Radio P4 Väst, a Japanese-Chinese consortium has placed a bid on the entire Saab bankruptcy estate. P4 Väst's sources say that the consortium plans to start producing electric cars and batteries in Trollhättan under the Saab brand.
In early February reports came through that Chinese Beijing Automotive (BAIC), together with Japanese Panasonic, could be interested in starting a co-operation for electric vehicles in Trollhättan. But according to local Trollhättan newspaper TTELA, BAIC and Panasonic is not involved in the new Japanese-Chinese consortium. The consortium is said to consist of companies from the supplier industry.
Swedish Springtime is reported to be representing the consortium. CEO of Springtime, Maria Arnholm, said the following to TTELA:
"I can confirm that we represent parties which have interest in Saab. That's all I can say."
According to sources the consortium is among the favorites to win the bidding for Saab. The consortium is said to be backed by financially strong partners and they are ready to pay a good price for the Saab bankruptcy estate.
"They are big favorites, because they are financially very strong," one source said.
The consortium is said to have met and held favorable talks with the bankruptcy administrators.
"They have met a number of stakeholders around Saab and they are a strong card in the bidding," a source told Dagens Industri.
The consortium is also said to have support from the Swedish government and Ministries.
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This would mean that we now have at least three more or less confirmed bidders. Chinese Youngman, Indian Mahindra and this new Japanese-Chinese consortium. Both Youngman and Mahindra are vehicle manufacturers and they want Saab's Phoenix platform and technical expertise and knowhow on regular cars. This new consortium on the other hand, wants to produce electric vehicle, which would mean the end to the Saab we know and love. The only thing that would carry on is the connection to Trollhättan and Sweden and the brand name Saab.
So what do we want, a Saab based on the Phoenix platform or a completely new electric Saab?
In early February reports came through that Chinese Beijing Automotive (BAIC), together with Japanese Panasonic, could be interested in starting a co-operation for electric vehicles in Trollhättan. But according to local Trollhättan newspaper TTELA, BAIC and Panasonic is not involved in the new Japanese-Chinese consortium. The consortium is said to consist of companies from the supplier industry.
Swedish Springtime is reported to be representing the consortium. CEO of Springtime, Maria Arnholm, said the following to TTELA:
"I can confirm that we represent parties which have interest in Saab. That's all I can say."
According to sources the consortium is among the favorites to win the bidding for Saab. The consortium is said to be backed by financially strong partners and they are ready to pay a good price for the Saab bankruptcy estate.
"They are big favorites, because they are financially very strong," one source said.
The consortium is said to have met and held favorable talks with the bankruptcy administrators.
"They have met a number of stakeholders around Saab and they are a strong card in the bidding," a source told Dagens Industri.
The consortium is also said to have support from the Swedish government and Ministries.
----------------
This would mean that we now have at least three more or less confirmed bidders. Chinese Youngman, Indian Mahindra and this new Japanese-Chinese consortium. Both Youngman and Mahindra are vehicle manufacturers and they want Saab's Phoenix platform and technical expertise and knowhow on regular cars. This new consortium on the other hand, wants to produce electric vehicle, which would mean the end to the Saab we know and love. The only thing that would carry on is the connection to Trollhättan and Sweden and the brand name Saab.
So what do we want, a Saab based on the Phoenix platform or a completely new electric Saab?
Saturday, March 17, 2012
Youngman-Lotus car sets world record
As you probably know by now, Chinese Zhejiang Youngman Lotus Automobile Co. is very eager to buy the entire Saab bankruptcy estate. Reason being Saab's high end technology, safety and brand name. But Youngman is already producing passenger cars. Last year 35,000 Youngman cars of two models were sold in China. And several new models are about to be launched.
So what is a Youngman car capable of? Well, according to Guinness World Records, a Youngman-Lotus car has the record for the world's largest loop!
So what is a Youngman car capable of? Well, according to Guinness World Records, a Youngman-Lotus car has the record for the world's largest loop!
Thursday, March 8, 2012
Rachel Pang of Youngman talks with Svenska Dagbladet
Reporter Jonas Fröberg of Svenska Dagbladet has done an excellent interview with Rachel Pang, CEO of Youngman Automobile. Below is a translation:
"Like ending a romantic relationship"
Rachel Pang, Saab speculator in a world dominated by suits. Now the previously inaccessible 29-year-old talks open-heartedly about the journey with Saab and Victor Muller - in an interview partially done from the passenger seat as she drives around, showing off her hometown in China.
After the interview, I have written a discreet note in the margin of the writing pad. "Shoulders slightly raised. Fingers entwined. Has dignity. "
Photo: Magnus Hjalmarson Neideman, Svenska Dagbladet
-Get in, says Rachel Pang and gets behind the wheel of a big black Mercedes, parked diagonally in front of the headquarter's entrance. She apologizes, says it's her mother's car. She herself is driving a small Youngman-Lotus.
We travel the few kilometers into the city of Jinhua in the Zhejiang Province, her hometown, a three-hour train ride south of Shanghai.
Why Saab?
-Technology, safety, and because it is part of Youngman's strategy to get a premium brand, she says thoughtfully.
She speaks English easily after three and a half years in England, where she took a degree in business administration. The first contact with Saab was made in October 2010. Then Rachel Pang was about to become president of the passenger car division and worked closely with English Lotus to produce cheap everyday cars.
What was your first impression of Victor Muller?
-It was in Shanghai in February last year. He was charismatic, passionate... an incredible entrepreneur. It was hard not to be impressed.
Just over two months later, in May last year, the tone was quite opposite. Despite the agreement with Youngman, Victor Muller negotiated with several other Chinese manufacturers. Behind Rachel Pang’s back. He finally chose Hawtai.
How did you find out?
She sighs.
-Victor told me face to face just before it was announced. I was very sad. We had put in so much work.
She is silent for a moment.
-It was like ending a romantic relationship. But they apparently did not have faith in us.
Why not?
-I do not know. It was the Board of Directors of Saab's parent company, Swan, which made the decision. But I know that they did not get all the relevant information.
A few weeks later Saab's business development manager Martin Larsson called. Saab wanted to collaborate again, this time also with the car dealership chain Pang Da.
Did you hesitate?
-We did not think that much on the risk for us then, we wanted to save the company, she says.
Thereafter an autumn with constantly lack of funds followed, reorganization and ultimately bankruptcy. Youngman was accused of not keeping their promises.
Comment?
-You have to remember that Saab was in a very bad shape. Victor and the people at Saab did not understand all the Chinese rules. All the big money transfers must be approved by the NDRC.
Could you have avoided reconstruction?
-We had transferred EUR 20 million. We had reached a limit and it took time to get permission to transfer more money.
Give us a quick analysis: Why did you fail last autumn?
-Partly because the money transfers were difficult. But also because of GM's no, and that others wanted to acquire Saab also caused problems. All in all it became too complex.
Are you in contact with Victor Muller today?
-Yes, he sends text messages sometimes and asks what the situation is.
We are approaching the city centre. Skyscrapers spread out. The assistant and the photographer Magnus are in the back seat. The seat upholstery is mustard colored and longhaired. Suddenly Rachel Pang lifts her arm and points.
-That’s where I live.
Imagine a mixture of Strandvägen [a certain road] in Stockholm and Manhattan on the "fine" north side of the river that divides the city. It's a penthouse apartment in a newly built skyscraper with panoramic views of the homeland.
-When I was a child I went with my father at various factories and got an early taste for working in the family business. After my education, I worked two months in the bus assembly - and no one knew who I was.
How was it like?
-Educational. But later on it became known who I was. Since then I've been working with import and export and I’ve been at several other departments.
It beeps every now and then when the mobile phone which is located between the seats receives text messages, she glances at it, but continue to talk.
Now she is CEO of Youngman's car manufacturing, which is operated in collaboration with Lotus Cars, which is owned by Malaysian Proton. Last year only 35,000 cars of two models were sold in China. But they are about to launch several new models. It requires a lot of collaboration with Lotus and many teleconferences with England - in the middle of the Saab circus.
-When it has been at the most intense with Saab, I’ve talked to my father on the phone every day at midnight. Afterwards I sit very often in conference calls with Europe at 3 – 4 o'clock at night. Then I sleep a little and start working again.
Rachel Pang and her father Pang Qingnian.
Photo: Magnus Hjalmarson Neideman, Svenska Dagbladet
Does it work out well to have your own father as your boss?
-Yes, I understand that me being a 29-year-old means that I do not always have the most experience. I discuss all the important issues with him.
Leisure?
-I have very little free time, but I love to cook. Creating meals in peace and quiet. It's relaxing, she says, smiling.
We have now come into the city centre and sat down at a Starbucks Coffee Shop. Her untouched latte is smoking hot. She continues to talk.
-The acquisition team totals around ten people from several departments. But for several weeks last autumn I was completely alone in Sweden. Then we worked almost around the clock.
She is quiet and prepares.
-It was written that I did not show up at the District Court in December. But the fact was that I got sick. I'd been working too much.
Honestly, did you consider giving up after the bankruptcy?
-No, not really. We had spent close to EUR 50 million on Saab.
Now she is back in Sweden. Travelling around with a delegation together with her father, and have nearly met with everyone in the Swedish political elite.
Do you believe in reviving Saab?
-Yes I do. But I am aware that it will take a lot of work the first years.
Monday, March 5, 2012
Youngman closing in on Saab?
Last week Chinese Zhejiang Youngman Lotus Automobile travelled from China to Sweden with one goal: To return back to China with an agreement to buy Saab Automobile from the bankruptcy administrators. Time will tell if they can succeed.
A large delegation arrived from China last week. Present were founder and Chairman of Youngman, Pang Qingnian, his daughter and CEO of Youngman Automobile Rachel Pang, and also a representative from their Chinese bank, allegedly the Bank of China.
"They do not wish to return home without the green light on the acquisition," a source told Swedish news agency TT.
To Swedish Radio P4 Väst Youngman's Chairman Pang Qingnian said:
"In any case we will do our best. If Sweden gives us the opportunity to buy Saab, we will do our very best to revive Saab."
After meeting the bankruptcy administrators in Gothenburg on Friday, the Chinese delegation travelled on to Stockholm on Saturday to continue the negotiations.
Youngman would not make any comments on Saturday, but their Swedish spokesman and lawyer, Johan Nylén, said that the talks were at a very intensive stage had been "very positive".
But why is Youngman so keen on acquring Saab? Youngman's Chairman Pang Qingnian gave some insight to radio P4 Väst:
"First and foremost because Saab is a well known brand and because Saab has a good management. Saab has a team that can build cars of high quality and with a good reputation. Saab is a good brand and if it were to disappear, we would be very very sorry," Pang Qingnian said.
From an interview several years ago we know that Pang Qingnian's ambitions are to develop and build cars of high quality:
"I want to produce automobiles with high quality, low energy consumption, low costs and low prices. From the aspect of strategy, we will win the market through high quality and low pricing. This is the direction of my future strategy. Let more consumers, spend relatively little money to buy good vehicles," Pang Qingnian said.
And Youngman has certainly shown the interest to acquire high quality manufacturer Saab the past year. For us looking from the outside at Saab's struggle to survive, Youngman has maybe not always looked credible and trustworthy when promised money to save Saab from bankruptcy was not paid. But this is business, and in business there is seldom room for charity and compassion. Only fools would time and time again make payments without any guarantee of something in return. In addition, it has been said that Youngman had trouble getting the needed money out of China. But now that has changed:
"What we can say right now is that they are still working intensely with the acquisition. Youngman has the necessary funding in place," lawyer Johan Nylén told TTELA.
And if Youngman succeed in buying Saab, Chairman Pang Qingnian belives in a bright future for Saab and its emplyees:
"We have high confidence in the management [of Saab] and we believe that Saab with all the employees have a great future and if we get the opportunity to buy it, we welcome every employee back."
And to achieve this, Pang Qingnian is prepared to invest SEK 12 billions to develop new Saab models. Models which will first and foremost be based in Saab's Phoenix platform which is under development. But until then, the Chinese would like to produce Lotus cars in Trollhättan:
"Since GM has stopped the production of the 9-5, we would like to start producing Lotus [based?] cars while we invest to develop the Phoenix platform," said Pang Qingnian to TTELA.
Pang Qingnian could however not say when an acquisition could be finalized.
"We do not know when in time a transaction can be done. But the bankruptcy administrators are working quickly and are very positive."
According to lawyer Johan Nylén, General Motors is no longer a decisive factor for the Chinese to buy Saab.
A large delegation arrived from China last week. Present were founder and Chairman of Youngman, Pang Qingnian, his daughter and CEO of Youngman Automobile Rachel Pang, and also a representative from their Chinese bank, allegedly the Bank of China.
"They do not wish to return home without the green light on the acquisition," a source told Swedish news agency TT.
To Swedish Radio P4 Väst Youngman's Chairman Pang Qingnian said:
"In any case we will do our best. If Sweden gives us the opportunity to buy Saab, we will do our very best to revive Saab."
After meeting the bankruptcy administrators in Gothenburg on Friday, the Chinese delegation travelled on to Stockholm on Saturday to continue the negotiations.
Youngman would not make any comments on Saturday, but their Swedish spokesman and lawyer, Johan Nylén, said that the talks were at a very intensive stage had been "very positive".
But why is Youngman so keen on acquring Saab? Youngman's Chairman Pang Qingnian gave some insight to radio P4 Väst:
"First and foremost because Saab is a well known brand and because Saab has a good management. Saab has a team that can build cars of high quality and with a good reputation. Saab is a good brand and if it were to disappear, we would be very very sorry," Pang Qingnian said.
From an interview several years ago we know that Pang Qingnian's ambitions are to develop and build cars of high quality:
"I want to produce automobiles with high quality, low energy consumption, low costs and low prices. From the aspect of strategy, we will win the market through high quality and low pricing. This is the direction of my future strategy. Let more consumers, spend relatively little money to buy good vehicles," Pang Qingnian said.
And Youngman has certainly shown the interest to acquire high quality manufacturer Saab the past year. For us looking from the outside at Saab's struggle to survive, Youngman has maybe not always looked credible and trustworthy when promised money to save Saab from bankruptcy was not paid. But this is business, and in business there is seldom room for charity and compassion. Only fools would time and time again make payments without any guarantee of something in return. In addition, it has been said that Youngman had trouble getting the needed money out of China. But now that has changed:
"What we can say right now is that they are still working intensely with the acquisition. Youngman has the necessary funding in place," lawyer Johan Nylén told TTELA.
And if Youngman succeed in buying Saab, Chairman Pang Qingnian belives in a bright future for Saab and its emplyees:
"We have high confidence in the management [of Saab] and we believe that Saab with all the employees have a great future and if we get the opportunity to buy it, we welcome every employee back."
And to achieve this, Pang Qingnian is prepared to invest SEK 12 billions to develop new Saab models. Models which will first and foremost be based in Saab's Phoenix platform which is under development. But until then, the Chinese would like to produce Lotus cars in Trollhättan:
"Since GM has stopped the production of the 9-5, we would like to start producing Lotus [based?] cars while we invest to develop the Phoenix platform," said Pang Qingnian to TTELA.
Pang Qingnian could however not say when an acquisition could be finalized.
"We do not know when in time a transaction can be done. But the bankruptcy administrators are working quickly and are very positive."
According to lawyer Johan Nylén, General Motors is no longer a decisive factor for the Chinese to buy Saab.
Friday, March 2, 2012
Youngman in negotation with administrators
According to TTELA, Chinese Zhejiang Youngman Lotus Automobile, is as we speak in a meeting with the bankruptcy administrators to discuss Youngman's bid on Saab.
The delegation from Youngman consists of twelve people, including founder and owner of Youngman Pang Qingnian and his daughter and CEO of Youngman Automobile Rachel Pang. Representatives from a Chinese bank is also reported to be present. According to Swedish Radio P4 Väst, the Chinese bank is Bank of China, which is one of the four big state-owned commercial banks of China. This would indicate that Youngman has funding in place and support from the Chinese authorities.
According to sources of Swedish business newspaper Dagens Industri, Youngman has made a SEK 2 billion offer which does not include the Saab parts business Saab Automobile Parts AB. Saab Automobile Parts AB has by Swedish authorities earlier been valued to at least SEK 2 billion, which would mean that the value of Saab as an entire entity, including the parts company, could be at least SEK 4 billion.
The delegation from Youngman consists of twelve people, including founder and owner of Youngman Pang Qingnian and his daughter and CEO of Youngman Automobile Rachel Pang. Representatives from a Chinese bank is also reported to be present. According to Swedish Radio P4 Väst, the Chinese bank is Bank of China, which is one of the four big state-owned commercial banks of China. This would indicate that Youngman has funding in place and support from the Chinese authorities.
According to sources of Swedish business newspaper Dagens Industri, Youngman has made a SEK 2 billion offer which does not include the Saab parts business Saab Automobile Parts AB. Saab Automobile Parts AB has by Swedish authorities earlier been valued to at least SEK 2 billion, which would mean that the value of Saab as an entire entity, including the parts company, could be at least SEK 4 billion.
Monday, February 20, 2012
Revised Youngman bid
According to Svenska Dagbladet, Chinese Youngman revised its bid on the Saab bankruptcy estate last week.
According to reports, the revised bid was made February 14 and the offer should be aorunc SEK 2 billion. Youngman is reported to be ready to increase the bid if the bankruptcy administrators can make a good arguement that the bankruptcy estate is worth more.
Youngman Chairman and founder Pang Qingnian tells SvD that the company is prepared to invest SEK 12 billion in the development of new Saab models. Furthermore that the development and manufacturing of Saabs will still be done in Trollhättan five years from now.
"It is essential," Pang Qingnian told Svenska Dagbladet and said that rich Chinese people prefer to buy cars manufactured in the West.
"We do not have the capacity to develop the cars. And I would like to keep many of the former management," he said and made it clear that it could prove a problem that many former employees now are getting new job.
According to Pang Qingnian, it is the Saab brand, the technology and the safety record of Saab that is the key elements that makes him want to buy Saab.
"We will focus on safety and the advanced technology and build up a network of dealerships. Saab will be our main priority. Today we are using 20 percent of the turnover from the car manufacturing on marketing and sales. That's a benchmark," Qingnian said on how to make Saab successful in China.
"Without the employees it is not possible, so it needs to happen quickly," said Pang.
First order of business should Youngman get Saab, is to finish the Pheonix platform according to Pang. That platform will form the basis for the next Saab 9-3 and then a new 9-4 and 9-5 will be developed. Later a 9-1, 9-6 and 9-7.
Until then Youngman wants to continue producing the current Saab 9-3, with some modifications.
"It [Saab 9-3] is not covered by GM's licenses and we could produce it with a diesel engine and automatic transmission - these are not controlled by GM. BAIC (Beijing Automotive) are entitled to certain technologies, but we have estimated that it will take about three months to replace the body parts. Thereafter it will take another few more months before any production can be started," Pang said and continued:
"We will first utilize the factory in Trollhättan and then we can start production in China."
According to reports, the revised bid was made February 14 and the offer should be aorunc SEK 2 billion. Youngman is reported to be ready to increase the bid if the bankruptcy administrators can make a good arguement that the bankruptcy estate is worth more.
Youngman Chairman and founder Pang Qingnian tells SvD that the company is prepared to invest SEK 12 billion in the development of new Saab models. Furthermore that the development and manufacturing of Saabs will still be done in Trollhättan five years from now.
"It is essential," Pang Qingnian told Svenska Dagbladet and said that rich Chinese people prefer to buy cars manufactured in the West.
"We do not have the capacity to develop the cars. And I would like to keep many of the former management," he said and made it clear that it could prove a problem that many former employees now are getting new job.
According to Pang Qingnian, it is the Saab brand, the technology and the safety record of Saab that is the key elements that makes him want to buy Saab.
"We will focus on safety and the advanced technology and build up a network of dealerships. Saab will be our main priority. Today we are using 20 percent of the turnover from the car manufacturing on marketing and sales. That's a benchmark," Qingnian said on how to make Saab successful in China.
"Without the employees it is not possible, so it needs to happen quickly," said Pang.
First order of business should Youngman get Saab, is to finish the Pheonix platform according to Pang. That platform will form the basis for the next Saab 9-3 and then a new 9-4 and 9-5 will be developed. Later a 9-1, 9-6 and 9-7.
Until then Youngman wants to continue producing the current Saab 9-3, with some modifications.
"It [Saab 9-3] is not covered by GM's licenses and we could produce it with a diesel engine and automatic transmission - these are not controlled by GM. BAIC (Beijing Automotive) are entitled to certain technologies, but we have estimated that it will take about three months to replace the body parts. Thereafter it will take another few more months before any production can be started," Pang said and continued:
"We will first utilize the factory in Trollhättan and then we can start production in China."
Thursday, February 16, 2012
Chinese Youngman to return to Sweden next week
Local Trollhättan newspaper TTELA reports that Chinese Saab suitor Zhejiang Youngman Lotus Automobile will return to Sweden at the beginning of next week.
Youngman made an indicative offer on the Saab bankruptcy estate already January 27th. Since then the Chinese have been in discussions with the administrators responsible for selling the Saab assets.
"This week is quiet, but on Monday and Tuesday there is reason to return to this issue," said Youngman's Swedish spokesman Johan Nylén to TTELA.
In addition to Youngman, also Turkish Brightwell Holdings NV has confirmed its interest in acquiring Saab, and yesterday Indian Mahindra & Mahindra also confirmed its interest in a TV interbiew. But these parties have not confirmed to have made any bids yet.
Youngman made an indicative offer on the Saab bankruptcy estate already January 27th. Since then the Chinese have been in discussions with the administrators responsible for selling the Saab assets.
"This week is quiet, but on Monday and Tuesday there is reason to return to this issue," said Youngman's Swedish spokesman Johan Nylén to TTELA.
In addition to Youngman, also Turkish Brightwell Holdings NV has confirmed its interest in acquiring Saab, and yesterday Indian Mahindra & Mahindra also confirmed its interest in a TV interbiew. But these parties have not confirmed to have made any bids yet.
Friday, February 3, 2012
Youngman bids SEK 3.2 billion, administrators set impossible conditions
Dagens Industri reports that the starting bid Chinese vehicle manufacturer Zhejiang Youngman Lotus Automobile placed on Saab January 27 is between SEK 2.2 and 3.2 billion. At the same time Swedish Radio P4 Väst reports that the bankruptcy administrators have set "impossible" conditions for a sale. Conditions which require an approval of the sale from General Motors.
Youngman's CEO Rachel Pang is expected to hold a press conference in Stockholm in Monday according to Dagens Industri.
"A detailed bid is expected to be ready at that time and she can present it to the public," said a source to Dagens Industri.
The Youngman bid is said to be from SEK 2.2 billion to 3.2 billion and will also include an assurance of continued production in Trollhättan.
Youngman would not comment on the bid but its spokesman in Sweden, Johan Nylén, told Swedish TV 4 Väst that they will work to get production going as quickly as possible and that they are waiting for an answer from the administrators.
But the question is if Youngman is waiting in vain. Swedish Radio P4 Väst reports that the administrators have set conditions that make a sale of the entire Saab business impossible and are now looking to sell Saab in parts.
"The administrators have practically set conditions that makes it impossible to conduct a full sale of Saab," said a source with good insight into the process to P4 Väst.
According to one source, the administrators require that a sale must be approved by General Motors.
The sources also say that the administrators have requested that the interested parties place bids on parts of the Saab business instead of entire Saab.
"The administrators have no intention to sell the estate as a whole, but they prefer selling it in parts. It is very surprising that they want to do it this way and completely unbelievable," one source said.
Swedish Radio P4 Väst writes that the administrators prefers that Volvo's owner Geely sets up a development centre in Trollhättan. Local Trollhättan newspaper TTELA reports that the negotiations between the administrators and Geely/Volvo is intensive, while the bid from Youngman is more or less being ignored. Another solution the administrators are said to be working for is that Chinese Beijing Automotive (BAIC) together with Panasonic start to build electric cars in Trollhättan.
"Yes, we are considering it, but it's a rather complicated business," said Mao Hai, vice president of Beijing Automotive Investment, to TTELA.
For me this is totally unbelievable. If this comes on top of everything that has happened to Saab the past years, then there must be a wide conspiracy against Saab. A conspiracy involving lawyers, courts, Ministries and the Government. And I refuse to believe that.
Youngman's CEO Rachel Pang is expected to hold a press conference in Stockholm in Monday according to Dagens Industri.
"A detailed bid is expected to be ready at that time and she can present it to the public," said a source to Dagens Industri.
The Youngman bid is said to be from SEK 2.2 billion to 3.2 billion and will also include an assurance of continued production in Trollhättan.
Youngman would not comment on the bid but its spokesman in Sweden, Johan Nylén, told Swedish TV 4 Väst that they will work to get production going as quickly as possible and that they are waiting for an answer from the administrators.
But the question is if Youngman is waiting in vain. Swedish Radio P4 Väst reports that the administrators have set conditions that make a sale of the entire Saab business impossible and are now looking to sell Saab in parts.
"The administrators have practically set conditions that makes it impossible to conduct a full sale of Saab," said a source with good insight into the process to P4 Väst.
According to one source, the administrators require that a sale must be approved by General Motors.
The sources also say that the administrators have requested that the interested parties place bids on parts of the Saab business instead of entire Saab.
"The administrators have no intention to sell the estate as a whole, but they prefer selling it in parts. It is very surprising that they want to do it this way and completely unbelievable," one source said.
Swedish Radio P4 Väst writes that the administrators prefers that Volvo's owner Geely sets up a development centre in Trollhättan. Local Trollhättan newspaper TTELA reports that the negotiations between the administrators and Geely/Volvo is intensive, while the bid from Youngman is more or less being ignored. Another solution the administrators are said to be working for is that Chinese Beijing Automotive (BAIC) together with Panasonic start to build electric cars in Trollhättan.
"Yes, we are considering it, but it's a rather complicated business," said Mao Hai, vice president of Beijing Automotive Investment, to TTELA.
For me this is totally unbelievable. If this comes on top of everything that has happened to Saab the past years, then there must be a wide conspiracy against Saab. A conspiracy involving lawyers, courts, Ministries and the Government. And I refuse to believe that.
Thursday, February 2, 2012
Youngman has placed bid on Saab
According to Swedish Radio news, Ekot, Chinese vehicle manufacturer Zhejiang Youngman Lotus Automobile has placed a bid on the Saab bankruptcy estate. Ekot's sources say that it is a bid worth several billions of Swedish kronor and it does include continued production in Trollhättan.
The sources also say that the bid was placed several days ago, but the bankruptcy administrators have so far not responded on the bid. According to SinoCast Daily Business Beat, Chairman of Youngman Pang Qingnian has said that the bid was placed Friday January 27th. SinoCast also reports that Pang Qingnian on January 30th predicted that the result would be known next month. He also stressed that the new acquisition scheme does not need the approval of General Motors.
Earlier it has been suggested that Youngman would be willing to bid SEK 5 billion for the estate and continue producing the Saab 9-3. Saab is said to have the rights to most of the technology used in the Saab 9-3, which would be the reason that the car could be continued produced despite General Motors statement that now buyer of Saab will be supplied licenses or technology. Production of the Saab 9-3 will however probably imply the use of engines, transmissions and drive trains from other suppliers that GM.
Production of Lotus cars at the Saab factory has also been mentioned as a possibility.
The sources also say that the bid was placed several days ago, but the bankruptcy administrators have so far not responded on the bid. According to SinoCast Daily Business Beat, Chairman of Youngman Pang Qingnian has said that the bid was placed Friday January 27th. SinoCast also reports that Pang Qingnian on January 30th predicted that the result would be known next month. He also stressed that the new acquisition scheme does not need the approval of General Motors.
Earlier it has been suggested that Youngman would be willing to bid SEK 5 billion for the estate and continue producing the Saab 9-3. Saab is said to have the rights to most of the technology used in the Saab 9-3, which would be the reason that the car could be continued produced despite General Motors statement that now buyer of Saab will be supplied licenses or technology. Production of the Saab 9-3 will however probably imply the use of engines, transmissions and drive trains from other suppliers that GM.
Production of Lotus cars at the Saab factory has also been mentioned as a possibility.
Tuesday, January 31, 2012
Youngman back in Sweden ready to talk
The management of Chinese Youngman arrived to Sweden late last night according to local Trollhättan newspaper TTELA. In the briefcase Chairman Pang Qingnian and his daughter and CEO Rachel Pang most likely have a bid on Saab. A bid based on a business plan not relying on support from General Motors.
"Youngman is not dependent on General Motors's decision," said Johan Nylén, Swedish spokesman of Youngman, to TTELA.
It was in the days ahead of Saab's bankruptcy filing on December 19, that General Motors (GM) made it clear that it would not support any transactions where Youngman took any ownership in Saab. Later GM has also said that they will not support any transaction, no matter who the buyer would turn out to be.
Now Youngman has evidently prepared a bid and a business plan where Saab will not depend on technical support or component sale from GM.
"You could say that Youngman is not dependent on General Motors. Youngman thinks that the operations at Trollhättan can be restarted, even without General Motors," Nylén said.
The Youngman management has a full schedule during their stay in Sweden.
"They will stay as long as necessary but at least one week," Johan Nylén said.
During their stay they will meet a number of people, organizations and companies that are significant to a restart of Saab.
"Then the next step is to begin final negotiations with the administrators," Nylén said, but he could not say exactly when those talks would take place:
"It depends on the administrators. We want to start a negotiation as soon as possible. Ideally, we would sit and discuss right now," said Johan Nylén.
"Youngman is not dependent on General Motors's decision," said Johan Nylén, Swedish spokesman of Youngman, to TTELA.
It was in the days ahead of Saab's bankruptcy filing on December 19, that General Motors (GM) made it clear that it would not support any transactions where Youngman took any ownership in Saab. Later GM has also said that they will not support any transaction, no matter who the buyer would turn out to be.
Now Youngman has evidently prepared a bid and a business plan where Saab will not depend on technical support or component sale from GM.
"You could say that Youngman is not dependent on General Motors. Youngman thinks that the operations at Trollhättan can be restarted, even without General Motors," Nylén said.
The Youngman management has a full schedule during their stay in Sweden.
"They will stay as long as necessary but at least one week," Johan Nylén said.
During their stay they will meet a number of people, organizations and companies that are significant to a restart of Saab.
"Then the next step is to begin final negotiations with the administrators," Nylén said, but he could not say exactly when those talks would take place:
"It depends on the administrators. We want to start a negotiation as soon as possible. Ideally, we would sit and discuss right now," said Johan Nylén.
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