If you’ve been holding out hope for a Saab comeback, we’ve got some bad news for you. Saab’s parent, Swedish Automobile, has cancelled agreements with Chinese partners Pang Da and Youngman, after the two companies attempted to change the terms of the non-binding agreements already in place. Instead of investing in Saab, the Chinese companies wanted to buy out the remaining shares of Saab common stock to take a controlling interest in the struggling automaker.
Such an action would likely have meant the end of Saab as we know it, so the move was rejected by Swedish Automobile CEO Victor Muller. That leaves Saab without a source of revenue to continue its restructuring, since the $70 million committed by North Street Capital last week will go to pay employee wages from August and September.
Had the Chinese government approved the original deals with Pang Da and Youngman, Saab would have received some $340 million in funding. While Chinese government approval was never likely, the possibility of such funding was enough for a Swedish court to approve a restructuring plan over bankruptcy. While betting against Saab has proven to be a mistake in the past, finding a new savior with unlimited funding in the next few days seems unlikely.
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.
