Saab's 9-5 in testing. Image: © Saab AB
In many ways, the saga of Saab automobiles is playing out like an old-fashioned movie cliffhanger. Each week, our hero (Saab, in this case) seems closer to imminent death, yet somehow survives to fight another day. For the past month, Saab’s financial state has looked bleak: a plan to sell off Saab assets to raise capital was being heavily scrutinized by both the European Investment Bank (EIB) and the Swedish Debt Office. At issue was the potential buyer (Vladimir Antonov), a Russian investor with alleged ties to organized crime.
This week, there’s a new twist: Hawtai Motor Group, a privately owned Chinese company, is seeking to invest some $210 million in Saab, giving them a 29.9 percent stake in the struggling automaker. Per Daniel Barr, Swedish Debt Office project leader for Saab, the automaker has filed an application for ownership change which must be approved by both the Debt Office and the EIB before money can change hands. Even if the agencies do green-light the ownership change, Hawtai will still require approval from the Chinese government. In other words, the transaction is still a long way from being signed, sealed and delivered.
Saab has been at a production standstill since a lack of cash flow forced suppliers to halt deliveries in April. Should the deal with Hawtai gain approval, the company could begin production of automobiles within two weeks. Even that may prove to be a double-edged sword for Saab’s employees, since the investment by Hawtai is likely to pave the way towards Chinese manufacturing of Saab automobiles.
Source: 4 Wheels News
Kurt Ernst has been passionate about automobiles and driving nearly his entire life. His early years were shaped working in the family service station, though his real passion was auto racing. After graduating from the University of Colorado, Kurt spent a year club racing with the Sports Car Club of America, before focusing on a business career in marketing and project management. Later, his passion for writing and the automotive hobby found him freelancing for a variety of automotive news sites, including Automotive Addicts and Motor Authority, where his work was syndicated and appeared in several national publications. Recognized as an expert in the automotive field, Kurt joined Hemmings Motor News as an Associate Editor in 2013, and in the years since has progressed to Editor, Hemmings Daily; Managing Editor for Hemmings Motor News, Hemmings Classic Car, Hemmings Muscle Machines, and the Hemmings Daily; and now, Managing Editor, Hemmings Auctions. Kurt was instrumental in organizing the Hemmings Motor News Concours d’Elegance from 2013-2019, and has served as a judge at this event and The Vintage Racing Stable Concours d’Elegance. A Skip Barber Racing School graduate and prolific writer, Ernst is also skilled in copyediting, project management, brand development, and public relations.
