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Saab limps along after new Chinese payout

TT/Rebecca Martin · 13 Dec 2011, 12:40

Published: 13 Dec 2011 12:40 GMT+01:00

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”But taxes and fees have been paid for Saab now,” Geers told news agency TT.

According to CEO Victor Muller, the sum that Youngman transferred to Saab is significantly higher than the 3.4 million kronor ($496,000) Saab needed for immediate payment of taxes and fees.

”Youngman transferred more than € 3.4 million to us,” Muller told local paper TTELA, adding that the payment is a ”good sign”.

Geers couldn't tell TT what bank was involved in the transaction but said that Saab is now working hard to secure the rest of the financing to continue the restructuring of the company.

According to TT, Saab had managed to clear their taxes regardless of the Chinese money.

”They have accounted for their VAT (moms) now,” confirmed Margareta Åhrberg, tax administrator at the Swedish Tax Agency.

This means that the company should get 21.3 million kronor in tax refunds, clearing their debt of 3.4 million by a large margin.

Youngman had said on Monday that money was on its way, one of many reassurances that funds would be injected into the cash-strapped auto company amid reports that a bankruptcy filing was imminent.

The ambition for Youngman now is to be a part owner of Saab, which would require a significantly larger cash injection.

Muller is also the only remaining member of the Saab board after alternate board member Martin Larsson gave up his position on Monday.

Story continues below…

The move not only leaves Muller personally liable to pay the money Saab owed to Swedish authorities, but also violates Swedish corporate law.

However, the company has six months to correct the situation.

TT/Rebecca Martin (news@thelocal.se)

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Your comments about this article

02:54 December 14, 2011 by gsp1946
I was 41 before I could afford my 1st Saab (a 97 (900S), and then I bought two more (a '99 9-3 Aero and an '06 9-5 "Aero"). I bought an '87 900T and then an '94 900S for my son's high school and college cars. After I retired from teaching, I worked as a Saab salesman, a service advisor and a bookkeeper/cashier. It was the best time ever. Now it will come to an end for Saab, that wonderfully quirky, sneaky-fast, car for the individual. We shall never see its like again.
00:12 December 15, 2011 by Just_Kidding
They also need 34Million SEK to pay 10000 SEK to each of their 3400 employees for November..or am I wrong? But getting some money from Chinese is a step forward since it means that they are not just wasting time and kicking tires at SAAB and mean business.
19:18 December 15, 2011 by Escort
When you can buy a BMW or Audi for similar money, you have to be a pretty misguided individual to spend your hard-earned cash on a liability like a Saab. They passed the point of no return years ago, at least where the European and North American markets are concerned.
16:53 December 16, 2011 by jackgranville
You BMW, Audi and Merc guys can say what you like. My SAAB 9-5 Estate (2006) is the best car I ever bought - and that includes two Volvos and two Mercs. The Volvos were fine and I may go back to the mark if SAAB dies. But the Mercs caused me a lot of trouble - notably with dodgy warning lights and a terrible servicing and repair network here in the UK. My Saab has never let me down (touch wood!) and there are plenty of them around here in London. You can go on about "out of date" design etc, but like the man said - if it ain't broke, don't try to fix it. Come on SAAB and you moneybags in China. Save a mark that has been at the forefront of producing eco-friendly and reliable cars and make more of them.
20:22 December 16, 2011 by Escort

I am actually a Volvo guy, Jack. It's good that you like your car, but everyone that I know who has owned a Saab has replaced it with another make. My neighbour bought a new 9-3 which was pretty unreliable, and he replaced it with an A4. This seems to be a common pattern, so Saab must be doing something wrong if it can't hang on to customers. They also seem to regularly feature in the "below average" category in customer satisfcation surveys (along with Fiat, Renault, etc.), which just isn't acceptable for a premium brand.
21:54 December 17, 2011 by dibble
I too am a Volvo lover but my experience is the opposite of Escort where my SAAB friends and acquaintances have stuck to the marque and majority have replaced their SAAB with another. One very good friend purchased a Mercedes AMG 5.5 and reckons it was the most unreliable car he ever had. He replaced it with an S Class which is now 5 years old and has been in the coachbuilders twice with rust problems and has also been very unreliable. Dealers have been very disappointing with the quality of service. S Type replaced two months ago with Audi A8. No such problems with Volvo.

Do hope SAAB manage to overcome their problems. Pity they ever got in tow with GM.
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