Following Saab‘s declared bankruptcy, the outstanding balance on the $400 million euro ($526 million) loan given to the automaker by the European Investment Bank required payment, since it had been guaranteed by the Swedish Debt Office.

Now, the Debt Office has reported that the outstanding balance on the loan (equivalent to some $325 million) has been paid, making the Swedish government the former automaker’s largest creditor.

With Saab assets, including shares in the parts and tooling divisions held as collateral by the Debt Office (which are worth more than the loan itself), sources have reported that the Swedish government is looking to sell the automaker as a whole entity, instead of breaking up and selling off various assets through bankruptcy.

Former suitor Zhejiang Youngman Lotus Automobile Group, whose last-minute rescue bid was blocked by General Motors, causing Saab to collapse in December, is reportedly still interested in acquiring the  former Swedish automaker, though so far, no official bids have  been announced.

[Source: Auto News]

Saab‘s parent, Swedish Automobile (formerly Spyker Cars), announced that an unnamed Chinese company will purchase 582 Saab cars at a total value of 13 million Euros ($18.4 million) in order to help the automaker pay wages to its employees and part of the money it owes to suppliers.

“I am pleased to announce this agreement, as it secures part of the necessary short-term funding for Saab Automobile and allows us to pay our employee’s wages before the end of this month,” declared Swedish Automobile CEO Victor Muller.

However, with suppliers facing prospects of only getting 10 percent of what they are owed in the short term, there have been calls for Saab to file for voluntary bankruptcy, the European association of automotive suppliers CLEPA, stating this is the only option in order to allow employees to obtain state aid.

In addition, Saab is still struggling to raise money via leasing and by-back of its real estate. According to an official release by Saab Automobiles, Russian businessman Vladimir Antonov is still very much interested in pour money into the ailing automaker, but was awaiting clearance from the Swedish National Debt Office.

Swedish real estate company Hemfosa, was on Saturday, preparing to buy and lease back Saab’s factory in Trollhattan, to help ease the company’s debt , though the deal still hinged on participation from the European Investment Bank as well as Chinese companies Pang Da and Youngman.

Nevertheless these ‘pending’ agreements have done little to quell fears about Saab’s longer term viability, particularly among CLEPA members. The organization’s CEO Lars Holmqvist believes that the Swedish government’s slow response to intervene with the Saab situation and the automaker’s low volume production, along with what he see as ‘pathetic’ last ditched attempts to secure funding, are only postponing the inevitable.

[Source: WSJ]

Poor Saab, it just can’t seem to catch a break. After negotiations with several Chinese automakers, it appeared that a deal with Hawtai Motor Group had been reached. Now that deal has collapsed.

Saab parent, Spyker Cars, said that Hawtai was unable to obtain all the necessary consents, as a result; the arrangement has been terminated with immediate affect, though there still is the possibility the two companies might continue discussions, albeit on a non-exclusive basis.

In the meantime, Spyker and Saab will continue to work on finding short and medium-term funding, which includes more discussions with Chinese ‘partners.’  In addition, Saab is talking with the European Investment Bank to complete the 29 million Euro drawdown on the loan given to it , as well as getting approval to sell and lease Saab assets.

Spyker said that “as soon as the EIB drawdown or other equivalent funding is confirmed, Saab Automobiles plans to re-start production depending on the outcome of discussions with its suppliers.”  The saga continues.

[Source: Automotive News]

General Motors has signed an agreement to sell off its Swedish Saab unit to the Koenigsegg Group. Led by supercar maker Koenigsegg, the group includes several additional investors. The deal will see the Koenigsegg Group take a 100 percent stake in Saab.

In a statement Koenigsegg Group CEO Christian von Koenigsegg said that the group plans to “transform Saab into a stand-alone vibrant entrepreneurial company and make it ‘sustainable’ by making it profitable.”

The deal is still contingent on additional funding, which Koenigsegg plans to raise through government loans and additional investors. According to a report in the Swedish newspaper Dagens Industri, a Koenigsegg Group executive said that the company requires $413.6 million in additional investments. Currently the Swedish government is reviewing a plan to secure a loan from the European Investment Bank.

Both Koenigsegg and General Motors seem to have differing opinions on how long it will take for the funding issue to be solved. Koenigsegg spokeswoman Halldora von Koenigsegg said she expects funding to be secured by in a month, while the less-optimistic GM is reported to have the end of 2009 pegged as a deadline to finalize the sale.

Additional specific terms of the agreement are not known, but it is expected that GM will supply the Koenigsegg Group with resources to assist in developing one additional model. Currently Saab is set to launch its latest model, the 2010 9-5 (pictured above) at the Frankfurt Auto Show.

[Source: Automotive News]

General Motors has officially announced it has reached a tentative deal to sell its Swedish Saab brand to a group of companies lead by Swedish supercar-maker Koenigsegg.

The deal will see the Koenigsegg group receive $600 million in funding from the European Investment Bank, which has been guaranteed by the Swedish government.

GM will provide Saab with platform and powertrain technology for an undisclosed period of time, while Saab is set to begin production of the next generation 9-5 in the near future at its plant in Trollhättan, Sweden.

“The proposed agreement will enable us to maximize the brand’s potential through an exciting new product line-up with a distinctly Swedish character.  Today’s announcement is great news for Saab’s current and future customers, dealers, suppliers and employees around the globe, said Jan Ake Jonsson, Managing Director of Saab.

“This is yet another significant step in the reinvention of GM and its European operations,” said GM Europe President, Carl-Peter Forster.  “Saab is a highly respected automotive brand with great potential. Closing this deal represents the best chance for Saab to emerge a stronger company.  Koenigsegg Group’s unique combination of innovation, entrepreneurial spirit and financial strength, combined with Koenigsegg’s proven ability to create world-class Swedish performance cars in a highly efficient manner, made it the right choice for Saab as well as for General Motors.”

Koenigsegg’s acquisition of Saab is expected to be completed by the third-quarter of this year.

Official:

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After purchasing Jaguar and Land Rover from Ford, and then dumping hundreds of millions of dollars into the two British brands, Indian carmaker Tata is just beginning to see the light – thanks to the Chinese government. According to a report in the Business Standard, the Chinese government has just signed a deal with Tata for the purchase of 13,000 new Land Rover and Jaguar vehicles.

The deal is reportedly worth $850 million – roughly a third of what Tata paid for the two companies just two years ago.

Apparently the division of cars will be be 10,000 Land Rovers and 3,000 Jaguars, although there are not details on which specific models.

A spokesperson for Jaguar Land Rover (JLR) said that this deal, “provides us with a solid base on which to further build our presence in this key emerging market and is particularly welcomed at this challenging time for us and the automotive industry.”

No kidding?

JLR is currently undergoing a downsizing operation that will see 450 employees let go – bringing the total to 2,000 since the economic crisis started. Compared to the industry as a whole, however, both companies have fared rather well with Land Rover posting a sales decline of 17 percent in 2008 and Jaguar actually posting an increase of 8 percent over the same period.

The two companies were  expected to take part in the $3.2 billion bailout from the British government and the European Investment Bank, however, that might not be quite so necessary now.

[Source: Business Standard]