• Sweden's news in English

Volvo's Chinese owner interested in Saab: report

TT/AFP/The Local · 6 Oct 2011, 09:06

Published: 06 Oct 2011 09:06 GMT+02:00

Facebook Twitter Google+ reddit

According to the Dagens Nyheter (DN) newspaper, Saab's Chinese partner Youngman, which had previously promised to pay the cash-strapped car maker 640 million kronor ($93 million), may be backing out of the deal.

Instead, Geely, which acquired Volvo from Ford in 2010, has expressed an interest in Saab.

“One sign of this is that Geely has approached Saab's reconstructor, lawyer Guy Lofalk,” a source told the newspaper.

Lofalk, the court-appointed administrator of Saab's reconstruction, recently visited China as a part of his work on Saab's reorganisation.

According to DN, Geely has been watching Saab's struggles with interest, but has stayed cautious about entering the fray.

However, amid fears that a Saab bankruptcy could mean the end of the brand, the Chinese automaker appears to view ownership as a viable option.

On Wednesday, Saab confirmed that an expected payment from Youngman would be delayed and that it remained unclear when the funds may arrive.

A Volvo spokesperson refused to comment on the report, deferring inquires to Geely.

Saab has been under bankruptcy protection since September 21st when a Swedish appeals court approved the company's request to carry out a business reorganisation, giving Saab a reprieve from creditors.

Story continues below…

After 12 weeks, the bankruptcy protection would be lifted if no extension request had been filed and granted, it said.

Saab's Dutch parent company Swedish Automobile has argued it only needs to keep its creditors at bay until regulatory approval goes through for its anticipated cash injection of €245 million ($335 million) from its Chinese partners Pang Da and Youngman.

The company, which says it has about €150 million in outstanding debt, has said it expects this cash influx in November. 

TT/AFP/The Local (news@thelocal.se)

Facebook Twitter Google+ reddit

Your comments about this article

22:41 October 6, 2011 by spy
Interest from Geely can only help Saab.

Youngman should pay up or bugger off.
12:07 October 7, 2011 by HenriX
GEELY is VERY interested, they own VOLVO already.

GEELY wants to be the biggest car builder in china, their market is the BRIC's (extreme grow market next 10-15 years), EU sails are bonus.

SAAB is modern, Sweden is reliable country whitout the EU problems.

they want to own it all and take it from the stock exchange, so called stock-exit procedure. buy all the stocks, make an offer nobody can refuse. (€ 8 - € 12, still extreme cheap to buy a car company like SAAB)

Swedish gouvernement wil be helpfull (saving job's)GM has a lot to lose on the Chinese market so they will be very cooperative (SAAB still has to pay $ 326 million)

And Victor Muller can cash his SAAB stock's and go on to be again SPYKER boss.

Sub contract firm's can again make a business, buy out of their € 150 million (50-60%)

GEELY can only winn, cheap buy, production can start soon, their market is their and growing.

Sweden will give all the help they can, GM is supportive, Chinese gouvernement will help, SAAB employee's, can keep their job's. so buy out (stock exchange exit = cheapest and best for all.
13:50 October 7, 2011 by RobinHood
Geely and Volvo have no need for shares in Saab.

After the bankruptcy, they will cherry pick the bits of Saab they want from the receiver in bankruptcy, at fire sale prices.
22:29 October 7, 2011 by spy

Perhaps... But they wont get the name and they wont get muchof the technology which is licensed from GM.

At this stage anything could happen.
00:33 October 10, 2011 by robfrey1
Disappointed in Youngman...recently I had an employer rescind a job offer to me. Man, I needed the cash! It is all good now, I had a Geely step forward. I hope Geely can step in, Volvo has made profits since Geely ownership.
08:57 October 10, 2011 by HenriX
the Swedish gouvernement will not let SAAB and his employees / sub contracters down.

GEELY is the best option, they have the ambition, market, administration in China, and more.

Joining SAAB an GEELY will be very succesfull, what are the negative sides??????????????

So this week or next week ( but what is the need for waiting 1 more week )they will announce this plan. Sweden ande GEELY (China) team up and go on. And not these European BLA BLA talking. EU is a dead horse.
14:18 October 11, 2011 by saabdude
And I thought US business & politics was screwed up. The Swedes have shown that they can be even WORSE.

Nice move...Lofak "shopping" SAAB behind the backs of SAAB management...but then again...he's just another scumbag lawyer, afterall.

Sure hope SAAB make it through this latest saga...but with Lofak in charge of the reconstruction...don't see that too likely to happen...sadly.
20:04 October 11, 2011 by HenriX
dear Swedish people,

I am from the Netherlands.

I love your country and people (been there a lot). With Norway your country (for me) is the best in the world but in the case of SAAB??? Your no 1.

You spend, like the rest of the EU, billions to help Greece. Nice but they Fu%%^ it Up themselves!!!

And with Saab (and the sub contracters in Sweden)a lot of families lives depend on working there. ( 8 or 9.000??)

My suggestion, buy all the SAAB shares (5 - 6 -8 EURO's per share, it will kost you 100 - 200 millions NOT billions), you can kick out Victor M. Contact a Chinese, Malysian car firm, they will trust the Sewdish gouvernement, and have the market, make a deal and start PRODUCING cars. The VAG / BMW / MERC car firms are making billions in Asia. So can Saab.

It is cheaper then all those people without a job (DRAMA), you can sell it to an other company in China / Malysia. It will be a payback solution and HELP your own people.

They can also do something accept 5-10% pay reduction, and PLEASE don't say it is against EU rules.

Germany/ France/Holland etc they also don't care, if it is in their own interest.

Cheers see you soon, (again)

our some rich Sweeds can do the above!!! ACT.

don't do like the British, there used to be made in ENGLAND, but no more!!
Today's headlines
Fake police car driver seized after confronting real police
File photo of a police car. Photo: Johan Nilsson/TT

Three men in a fake police car were left red-faced after they tried to stop a man in southern Sweden who turned out to be an off-duty officer.

This tiny bird can fly for ten months straight: scientists
The common swift while not in flight. Photo: Madis Veskimeister/Wikimedia

Swedish scientists have found that this bird stays in the air for almost a year without landing.

Why the Pope is visiting Sweden next week
Pope Francis in the Vatican. Photo: AP Photo/Alessandra Tarantino

Pope to nail reconciliation agenda to Lutherans' door in southern Sweden.

The Local Recipes
How to make no-knead sourdough bread like a Swede
No-knead sourdough bread. Photo: John Duxbury/Swedish Food

Swedes love their sourdough bread. Food writer John Duxbury shares his favourite Swedish recipe for a no-knead loaf.

Meet Sweden's lonely Donald Trump voter
A Donald Trump campaign button. Photo: Rogelio V Solis/AP

The Local talks to an American Donald Trump supporter on what it is like living in progressive stronghold Sweden.

Forgotten Ingmar Bergman script to be made into a film
It's thought the script was part of an ill-fated collaboration between Bergman (left) and Federico Fellini (right). Photo: AP

Written in 1969, the script is 'up to the standard of his best', according to the Ingmar Bergman Foundation.

Sweden's consumption footprint 'among the worst'
Trucks transporting goods on a Swedish highway. Photo: Fredrik Sandberg/TT

Sweden has been criticized for its unsustainable consumption of the planet's resources in the latest edition of a major WWF study.

Video: How to be Joel Kinnaman for a day
Kinnaman with one of the camera rigs that will allow people inside his head. Photo: Tele2

The Swedish Hollywood actor will strap a camera to his head, stream it live and allow viewers to interact with him this weekend.

Presented by Invest Stockholm
How Stockholm's cold climate boosts creativity
Photo: Ola Ericson/imagebank.sweden.se

Do long, dark winters actually make Swedes more creative and more productive? We spoke to Stockholm startups to find out.

Sweden to keep record-low interest rate in 2017
Sweden's landmark negative interest rate will continue towards 2018. Photo: Anders Wiklund/TT

The Swedish central bank said that it will take longer than expected to reach its inflation target.

Sponsored Article
Top 7 tips to help you learn Swedish
People-watching: October 26th
Sponsored Article
‘Extremism can't be defeated on the battlefield alone’
Sweden cuts 2016 refugee forecast
Is Game of Thrones coming to Sweden?
Blog updates

6 October

10 useful hjälpverb (The Swedish Teacher) »

"Hej! I think the so-called “hjalpverb” (auxiliary verbs in English) are a good way to get…" READ »


8 July

Editor’s blog, July 8th (The Local Sweden) »

"Hej readers, It has, as always, been a bizarre, serious and hilarious week in Sweden. You…" READ »

Sponsored Article
One expat's strategy for making friends in Stockholm
Property of the week: Kungsholmen, Stockholm
Sponsored Article
Nordic fashion in focus at Stockholm University
Will Swedes soon be looking for fairtrade porn?
The Local Voices
'I simply don’t believe in nationality'
Why we're convinced Game of Thrones is based on Sweden
Sponsored Article
Stockholm: creating solutions to global challenges
People-watching: October 21st-23rd
Sponsored Article
Last chance to vote absentee in the US elections
Fury at plans that 'threaten the IB's survival' in Sweden
Analysis & Opinion
Are we just going to let half the country die?
Sponsored Article
This is Malmö: Football capital of Sweden
Angry elk chases Swede up a lamp post
Sponsored Article
Where is the Swedish music industry heading?
The Local Voices
'Alienation in Sweden feels better: I find myself a stranger among scores of aliens'
People-watching: October 20th
Sponsored Article
Why you should 'grab a chair' on Stockholm's tech scene
The Local Voices
A layover at Qatar airport brought this Swedish-Kenyan couple together - now they're heading for marriage
Sponsored Article
Swedish for programmers: 'It changed my life'
Swede punches clown that scared his grandmother
Sponsored Article
Stockholm: creating solutions to global challenges
Fans throw flares and enter pitch in Swedish football riot
Sponsored Article
Why you should 'grab a chair' on Stockholm's tech scene
Could Swedish blood test solve 'Making a Murderer'?
Sponsored Article
Where is the Swedish music industry heading?
Swedish school to build gender neutral changing room
Sponsored Article
One expat's strategy for making friends in Stockholm
People-watching: October 14th-16th
Sponsored Article
Nordic fashion in focus at Stockholm University
Man in Sweden assaulted by clowns with broken bottle
Nobel Prize 2016: Literature
Watch the man who discovered Bob Dylan react to his Nobel Prize win
Record numbers emigrating from Sweden
People-watching: October 12th
The Local Voices
'Swedish startups should embrace newcomers' talents - there's nothing to fear'
How far right are the Sweden Democrats?
The Local Voices
Syria's White Helmets: The Nobel Peace Prize would have meant a lot, but pulling a child from rubble is the greatest reward
jobs available