After filing for bankruptcy on Monday morning, Saab is now suspending all warranty coverage on its North American cars.

Saab dealers have been told that all remaining vehicles they have on the lot are to be sold as is with no coverage; The warranty booklets were even removed from the information packets of new Saab’s. The demise of the company could mean better deals for some, but it also proves to be an unfortunate surprise for any new Saab owners. Saab has also suspended the processing of payments and claims that were underway, even if they were started before the automaker filed for bankruptcy.

“Saab owners should be advised to keep receipts of all related warranty work done or services performed until further notice,” Saab Cars North America said. It is not 100% confirmed that the warranty claims will not be honored, but for the time being dealers have been told to assume the worst.

[Source:Automotive News]

Despite being officially declared bankrupt, Saab still has organizations willing to snap up the remnants, as the former Swedish carmaker goes into liquidation.

It’s probably not surprising, but considering the money it’s already put out to try and save Saab, China’s Zhejiang Youngman Lotus Automobile Co. Ltd, is still interested in acquiring what assets it can, which, according to a spokesman, primarily concerns the Phoenix platform which would have formed the basis for the next generation 9-3, along with other technologies that didn’t hinge on General Motors (part of the reason for Saab’s bankruptcy was GM’s refusal to allow Youngman to acquire the brand, fearing technologies it had invested with the Swedish automaker could end up in Swedish hands).

Yet another suitor comes in the form of the Turkish government. While it is very unlikely Turkey would want to build Saabs per se, the country already boasts a number of assembly plants belonging to foreign automakers, but until now hasn’t had a real domestic brand. If the government is able to acquire Saab assets, including the much valued Phoenix platform, then the Saab 9-3 might live on after all, though under a different name.

Given the twists and turns that have occurred with Saab since its independence from GM, what happens next at this point is anybody’s guess.

[Source: Left Lane News]

Saab’s financial rollercoaster seems to have come to what many have speculated would be its inevitable conclusion, with the Swedish automaker today announcing it has filed for bankruptcy with the District Court in Vänersborg, Sweden.

The news comes as Saab was seeking to reorganize, with the struggling car maker desperate to arrange funding. The most likely candidate had been Chinese automaker Zhejiang Youngman Lotus Automobile Co., which has now announced it can not move forward based on opposition from General Motors. GM opposed the sale to a Chinese automaker as it owns the technology behind two of Saab’s models and even manufactures the 9-4X crossover for Saab.

Representatives at GM have previously said the American auto giant would look to block any sale based on intellectual property issues, with concerns such a sale could harm its business in China.

“After having received the recent position of GM on the contemplated transaction with Saab Automobile, Youngman informed Saab Automobile that the funding to continue and complete the reorganization of Saab Automobile could not be concluded. The Board of Saab Automobile subsequently decided that the company without further funding will be insolvent and that filing bankruptcy is in the best interests of its creditors,” reads a statement on the Saab website. Along with Saab Automobile, this filing includes Saab Automobile Tools AB and Saab Powertrain AB.

In yet another twist to the ongoing Saab soap opera, the Swedish automaker has received a payment from Zhejiang Youngman Lotus Automobile as it struggles to stay solvent. The payment, which is some $5 million will be reportedly be used to cover outstanding tax expenses.

Following on from that, Youngman, which is looking to take a significant stake in Saab, apparently plans to pay out more money by the end of this week, (some 20 million euros/$26.4 million), in this case to cover unpaid salaries. A spokesman for Saab, Eric Geers, confirmed that while the first payment had been received, nothing else could be confirmed, except the fact that talks with Youngman are “ongoing.”

Saab has been struggling to stay afloat ever since it was purchased from General Motors by Spyker and it’s main assembly plant in Trolhattan, Sweden, is currently idled in the wake of unpaid bills. In recent months the firm, owned by Swedish Automobile has sought creditor protection as it looks to find suitable investors.

Youngman has repeatedly tried to buy into Saab, but the latest deal was vetoed by General Motors, which still owns licenses for Saab technology. In the meantime Saab, still under creditor protection is under increasing pressure by the administrator overseeing the process, to have it’s protection agreement terminated.

A distric court in western Sweden, has given the automaker and its creditors, until Thursday this week to submit their views regarding the matter. A final decision on Saab’s status is expected to be made on December 16th.

[Source: Reuters]

Saab‘s clock is ticking quickly to find a way out of bankruptcy with just a “very few days” left to find a loan. Unfortunately, General Motors has been playing a vital role in blocking Saab from selling any of the company to a Chinese automaker, forcing Saab to try to find a loan.

Since Saab can’t sell all or part of the company to any of its interested suitors, Saab has asked their Chinese partner Youngman for a generous $803 million loan. Saab is basically looking for a way to avoid having to get approval from General Motors, since they refuse to give it if it involves shares of the company.

But they better act quick as Saab’s creditor protection could be lifted as early as next week, forcing them into bankruptcy.

[Source: Left Lane News]

Saab has officially been struggling for two whole years now, since its problems first came to light in December, 2009.

With time, it has seen some positive developments, but things don’t look any better for the foreseeable future.

A few months ago, Saab had received a court order that prevented its creditors to push the company into bankruptcy. It would use this time to reorganize. However,  Saab’s owner – Swedish Automobiles NV, has said that Saab and its creditors have just five to six days to submit their views to the district court in Sweden. The court will decide whether to end the reorganization and push the company into bankruptcy.

Despite attracting two major Chinese companies (Pang Da Automobile Trade Co. & Zhejiang Youngman Lotus Automobiles) to invest in Saab, there have been delays in getting the necessary payments from the Chinese, and production lines have been sitting still for almost an entire year.

Saab previous owner, General Motors also has some objections. Most of the technologies found in current Saab vehicles is licensed from GM, and it does not want to support a sale of Saab that could hurt its own position in China.

GM currently builds the 9-4X for Saab in Mexico. If GM pulls the plug on their deal with Saab, it would be impossible for the company to survive in its current form.

Stay tuned, as this drama is far from over just yet.

[Source: Automotive News]

It seems like there’s more people involved that are interested in saving Saab than there are interested in purchasing their vehicles. Nonetheless, the drama continues to unfold as we reported yesterday that the Bank of China would come to save Saab, but the Chinese firm Pang Da is still expressing interest.

Pang Da is still interested in purchasing at least a part of Saab along with China’s Youngman. Both were originally included in Saab’s plan to sell the brand, but recent reports show that the Bank of China would replace Pang Da as the rescuer. The reason for the switch was believed to be caused by opposition from Saab shareholder, General Motors.

Saab did say that they are still in talks with Youngman and an unnamed bank, but declined to comment on Pang Da’s involvement. But Pang Da reassured the public today that they are still interested in a stake in Saab and that they are still in negotiations with them.

The bright side to all of this? It should be over soon, as Saab’s time is running out with unpaid workers calling for the company’s bankruptcy.

[Source: Reuters]

Saab’s sob story saga might be coming to an end, though the information surrounding their pending acquisition is murky at best.

Rumors swirled quickly around the media yesterday that the Bank of China, fourth-largest by market value had planned to acquire just under 50 percent of the company. Those reports are now being corrected— it’s a bank in China, but not the Bank of China. Regardless, this investment could be the savior Saab prayed for after GM flatly rejected their previous partnership with Zhejiang Youngman Lotus Automobile Co. and Pang Da Automobile Trade Co.

Pang Da operates dealerships in China, while Youngman manufactures Chinese vehicles under the Lotus brand.

According to GM, that partnership would jeopardize their own interests in China because they supply both parts and the 9-4X crossover, which would then be unfairly accessible to the Chinese companies.

Saab hopes the new deal will keep GM satisfied while allowing them to finally be rid of their debt, which includes unpaid salaries and bills.

“The discussions include a short term solution to enable Saab Automobile to pay November wages and continue reorganization. The outcome of the discussions is still uncertain,” Saab said to Automotive News.

Saab parent company Swedish Automobile originally hoped for Pang Da and Youngman to take a combined 53.9 percent share of Swedish Automobile, but nothing in Saab. The two companies pushed instead for full ownership of Saab.

Gallery: Saab 9-4X

[Source: Automotive News]

Although Saab has been struggling for the past year, don’t bet against it. All but doomed when GM sought to stop Saab’s deal with the Chinese Zhejiang Youngman Lotus Automobile Co. and Pang Da Automobile Trade Co., Youngman is now proposing a new deal with Bank of China, the country’s fourth largest bank by market value.

The deal with Bank of China, which replaces Pang Da, will allow the bank to own just under 50 percent of Saab. As GM threatened to halt the assembly of the Saab 9-4X crossover as well as halting the supply of components and technology if Youngman and Pang Da succeeded their acquisition bid, the substitution of Bank of China should help pave the way for Saab’s acquisition approval.

Currently, Saab is under court protection from Swedish creditors as its plant has not produced a car in months due to unpaid salaries and bills.

GALLERY: Saab 9-4X

[Source: Reuters]

Vladimir Antonov, the Russian “businessman” who attempted to buy Saab earlier in the year, has been arrested in England over charges of involvement in a massive money laundering scheme in Lithuania.

Antonov, owner of Portsmouth F.C. (a British soccer team) and his partner Raimondas Baranauskas, were released on bail and ordered to surrender their passports. Both are due to be extradited to Lithuania, where authorities say the two embezzled hundreds of millions of dollars from Lithuanian bank Snoras.

Antonov previously tried to buy Saab, but his attempts to purchase it were disrupted by creditors and other parties, amid allegations of financial impropriety.

[Source: The Bellingham Herald]

Even as the Occupy movement is being disbanded around the world, one branch of the movement just had a resurgance, as Saab fans “occupied” the Facebook page of General Motors.

Saab fans blame GM for holding up the sale of Saab to their potential saviors - whoever they may be (so far it’s been Russian businessmen, American private equity investors and now, a Chinese automaker) but GM has expressed concerns about intellectual property getting into the wrong hands. GM definitely has a point, and we’re not sure if juvenile tactics like this will help advance the cause of Saab fans. Perhaps the opposite.

Consumer Reports recently compared four luxury sedans in the January issue of the magazine, pitting the Audi A6 against the Infiniti M35h, Mercedes-Benz E350 BlueTec and Saab 9-5, with the refreshed A6 receiving an overall test score of 93, tying Infiniti’s M37 at the top of the charts. The previous generation A6 had scored a disappointing 79.

For the A6, Consumer Reports raved about how agile, comfortable, quiet and quick the vehicle was. The model tested was a 3.0T Quattro Premium Plus with a supercharged 3.0L powerplant with 310-hp. Consumer Reports was able to get 22-mpg out of the sedan, enjoyed the eight-speed transmission and found braking performance to be very good.

Mercedes-Benz’s E350 BlueTec received top honors for fuel efficiency with 26-mpg, while the M35h received an excellent road test score despite reporting that its power delivery tend to be jerky and abrupt. Consumer Reports also reported that the M35h’s handling and braking wasn’t as brilliant as the M37′s.

Lastly, and probably to no one’s surprise, Saab’s 9-5 was deemed disappointing and seen as a poor value.

An article in Automotive News proposed that the Saab 9-4X crossover may be the world’s rarest new vehicle on sale. Although Saab had planned to sell between 15,000 and 20,000 examples globally this year (with half of sales conducted in the United States), a mere 194 have been sold through October in the United States.

While ultra-low volume cars like the Lexus LFA may sell in the double digits for a given model year, the 9-4X is a mainstream vehicle, built at a General Motors facility in Mexico and based on the Cadillac SRX crossover. Given Saab’s recent financial roller coaster, it’s no surprise that production and supply woes would be present. But the notion of a Saab being one of the rarest vehicles on sale, is highly ironic. For years, nobody wanted Saab products. Now it would be tough to find one even if you wanted one.

[Source: Automotive News]

General Motors has announced that it will cut ties with Saab over its pending sale to two Chinese automakers. The threat has some very real consequences with GM stating it would cease manufacturing of the 9-4X crossover for Saab, as well as stop delivery of the parts it currently supplies the Swedish automaker with.

“Although General Motors is open to the continued supply of powertrains and other components to Saab under appropriate terms and conditions, G.M. will not agree to the continuation of the existing technology licenses or the continued supply of 9-4X vehicles to Saab following the proposed change in ownership as it would not be in the best interests of G.M. shareholders,” said Jim Cain, a General Motors spokesman in an interview with Reuters.

GM owned Saab until last year, selling it to Dutch exotic car maker Spyker, remaining connected despite the changed ownership. Money problems have plagued Saab since, bringing it to the brink of bankruptcy over the summer. A series of deals meant to save the company fell through, until current owner Swedish Automobile decided to sell Saab to Zhejiang Youngman Lotus Automobile and Pang Da Automobile Trade.

Therein lies the problem for GM, which objects to supplying its technology to Chinese companies and potentially threatening its sales in China and other markets. Monday’s announcement represents a hardened position compared to their Friday announcement suggesting the sale would be difficult to back.

Don’t forget that there haven’t been any final decisions made yet, Swedish Automobile said they will discuss the sale with G.M. before moving forward.

“I expect this to happen tomorrow. There are always alternatives but we only have limited time,” the chief executive of Swedish Automobile, Victor R. Muller, told Reuters in a text message.

[Source: The New York Times]

Saab‘s matchmaking saga is the stuff of cinema. Facing compounding financial dilemmas and a series of unsuccessful talks with a number of investors, the troubled Swedish automaker had little going for it. Just as Saab was close to finally making a deal with its Chinese investors, Pang Da Automobile Trade Co. and Zhejiang Youngman Lotus Automobile Co., the company faces yet another challenge that may prevent the deal from happening.

General Motors Co., the former owner of Saab, is looking to prevent the Chinese acquisition. GM spokeswoman Renee Rashid-Merem claims, “GM would not be able to support a change in the ownership of Saab which could negatively impact GM’s existing relationships in China or otherwise adversely affect GM’s interests worldwide.”

Removing Saab during its 2009 bankruptcy restructuring, GM still owns the technology that Saab uses to produce two of its models. Also, GM has built the 9-4X in Mexico for Saab this year. If bought by Pang Da Automobiles and Youngman Lotus, GM is concerned for the intellectual property that is licensed to Saab.

As roadblocks mount, it is becoming clear that time is running out for Saab. The Swedish brand sold 49,000 units in the United States in 2003 and have now dropped to only 5,800 models sold for 2010 nearly a 90-percent decrease. Through October, only 4,984 units have been sold in the United States so far this year.

[source: Detroit News]

After much back and forth over the past months between Swedish Automaker Saab and Chinese suitors Pang Da Automobile Trade Co. and Zhejiang Youngman Lotus Automobile Co., it seems like funding for Saab is very much back. The Chinese companies have both agreed to buy the Swedish automaker, providing the company with some much needed short and long term liquidity.

The details of Pang Da and Youngman’s agreement are an initial commitment of EUR 50 million to fund Saab Automobile while in reorganization. Next, the Chinese investors will then provide at least another EUR 600 million in funding to restart production and to settle the company’s debts and liabilities, allowing the company to concentrate on matters moving forward.

However, the condition that broke the agreement in the past may cause an interference again. This deal can only become a reality if the Chinese government chooses to give its seal of approval.

According to Saab’s restructuring plan, production will resume in Sweden and Mexico while considerations for assembly in China will be addressed as well. Immediate targets for Saab include the introduction of the 9-4X crossover and the 9-5 SportrCombi wagon. Saab aims to sell up to 55,000 vehicles for the year 2012. In 2010, Saab only managed to move 32,000 vehicles.

Pang Da and Youngman are optimistic that Saab has what it takes to become a profitable company. While 2012 will be a transitional year of reconstruction, the Chinese hope that Saab profitability will return for 2014.

It’s been a leaky autumn so far in the motoring universe. Supposed actual pictures and specs have been “leaked” on Toyota’s upcoming FT-86 coupe (FR-S to us in North America); as well as details on Honda’s new generation CR-V crossover.

Now, Saab has joined the fold, with a picture uncovered by Swedish website SVD Näringsliv, which reportedly shows the next 9-3. The image was originally part of a presentation which Saab gave to the European Investment Bank last year as it made attempts to remain financially afloat.

Now that Da Pang and Youngman have agreed to buy the Swedish Automaker lock, stock and barrel (for a price of 100 million euros/$142 million U.S.), Saab can now get on with what it does best, namely making quirky cars.

Although the Chinese government has yet to give it’s approval stamp, it appears things are moving forward. Production at Saab’s plant in Trollhattan, is rumored to restart in the next several weeks and a number of new models are apparently in the pipeline, including an updated 9-3, which will reportedly come in fastback (which the sketch above illustrates) and convertible variants. Other planned models include an entry level 9-1 and possibly an executive express (9-6 or 9-8 anyone?).

Although some might say that the Saab-China deal wasn’t agreed under the best of terms (Saab’s owner Swedish Automobile was under intense pressure to get a major lifeline, or else bankruptcy protection would end), there are others that are glad one of the world’s most interesting and alternative car manufacturers is still around.

It’ll be interesting to see if under Chinese stewardship; the blasted brand can finally make some money. Time will no doubt tell.

According to Inside Line, Saab may be ready to re-start production at its factories in as little as 8 weeks, after being sold to two Chinese automakers for $142 million.

While Saab was valued at $660 million this summer, both Pang Da and Zhejiang Youngman Lotus Automobile Co. managed to purchase the company at a rock bottom price after a number of other deals failed to materialize. Chinese companies now own both Saab and Swedish automaker Volvo.

Saab’s Swedish factories have been idled since March, but could be up and running in as little as 2 months. The company claims to have 11,000 vehicle orders on the books, and may even bring the 2012 9-5 SportCombi station wagon to this April’s New York Auto Show if all goes smoothly in the upcoming months.

[Source: Inside Line]

According to Saab CEO, Victor Muller, a takeover offer of the Swedish brand by China’s Zhejiang Youngman Lotus Automobile Co. and Pang Da Automobile Trade Co. has been turned down.

Although initial talks were intended to aid Saab in raising capital, Muller explains during a Reuters interview, “The token offer was unacceptable because it would trigger every conceivable change of control clause and that would possibly mean the end of Saab.”

Although the undisclosed offer was unsuccessful, the two Chinese automakers are still interested in Saab, committed to their 53.9 percent stake in the Swedish brand.

Addressing Saab’s plans if the Chinese companies walk away from the deal, Muller answers, “There is always a plan B.” However, keeping his cards close to his chest, Muller will reveal the details of the plan, “only if we resort to it.”

Moreover, an investment firm has also pledged an injection of capital, prompting the directing administrator in charge of Saab’s reorganization to request on Thursday for the Swedish court to pull the plug on Saab’s bankruptcy protection. Saab, having extended plants halts since March due to lack of money, avoided bankruptcy last month when the Swedish court granted Saab voluntary reorganization.

[Source: Automotive News]

U.S. private equity firm North Street Capital will give Saab a $70 million investment, including an equity stake worth $10 million and a $60 million loan to the ailing car maker.

With Chinese-backed financing looking increasingly unlikely, the investment from North Street Capital, a firm run by auto enthusiast Alex Mascioli, will give Saab the resources it needs to (literally) keep the lights on at their facilities. The Chinese government has yet to approve the bridge loan being offered by both Zhejiang Youngman Lotus Automobile Co and Pang Da, and Saab’s owners fear that full payment will not be received on the October 22nd due date.

[Source: Automotive News]

The administrator in charge of the Saab bankruptcy proceedings has told a Swedish court that the process must stop.

“The money is not enough to continue the reorganization,”said Guy Lofalk in an interview with Reuters. “Now, an application [to terminate the reorganization] has been mailed. It should be on the court’s desk tomorrow.”

Lofalk said that the $70 million investment from North Street Capital was insufficient, and that the two Chinese companies looking to buy Saab have failed to reach an agreement with Saab’s owners.

Saab’s owner, Swedish Automobile, said that it would fight the request and attempt to have Lofalk removed from his position.

[Source: Automotive News]

Narrowly escaping bankruptcy and liquidation for the 17th time (ok, maybe that’s an exaggeration), Saab has confirmed receipt of a 70 million Euro payment from Chinese investor and automaker Zhejiang Youngman Lotus Automobile Co.

Far from a magic wand that will make all of Saab’s troubles go away, the automaker continues to operate in its restructuring phase, with the funds being used to simply keep the ship afloat during that time. Swedish law doesn’t permit companies to take out new loans during a restructuring phase, a law both Saab and Youngman have managed to avoid by signing an agreement back in September, and now claiming the funds have been available for several weeks.

Saab continues to await further investment by Youngman and Pang Da Automobile Trade Co., both of which are subject to approval by the Chinese government won’t be decided on until October 14th at the earliest. Saab has given no indication of when it hopes to open its Trollhattan assembly plant.

[Source: WSJ]

The tiny island nation of Singapore is best known for its laws banning chewing gum and instituting corporal punishment against criminals, and apparently, a big lover of the Saab 9-5.

The obscure Swedish sedan was named “Car of the Year” by a local publication called “Consumer Guide”, according to Saab’s PR department.  Car taxes in Singapore are severe and import restrictions make it difficult for residents to actually buy a new car, so Saab may get bragging rights, but seeing any extra dollars from this is unlikely.

At this week’s SEA All-Wheel Drive Symposium in Bloomfield Hills, Michigan, OEM supplier BorgWarner will show off its next generation of AWD systems including a new hybrid-electric setup. The system, known as eAWD, will be fitted to a Saab 9-3 and BorgWarner claims it will offer, “superior stability and traction with lower emissions and up to 20 percent better fuel economy.”

Saab announced a similar system on its Phoenix Concept (above) at the Geneva Auto Show earlier this year. Calling its version eXWD, the setup makes use of a 200-hp turbocharged 4-cylinder gasoline engine and 34-hp hybrid system with power constantly going to the front wheels, while sending power to the rear wheels when necessary. Saab claims the setup would be able to deliver a 50-mpg rating.

In addition, BorgWarner will display new single and multi-gear eGearDrive transmissions for electric cars.

GALLERY: Saab Phoenix Concept