Saab's Hopes Fade as Chinese Investors Lose Interest
Saab Automobile’s last hopes for avoiding collapse appeared to be fading Thursday, with Chinese investors getting cold feet and the court-appointed administrator recommending that its reorganization process be halted.
Guy Lofalk, the administrator, “will apply for termination of the voluntary reorganization of Saab” and two subsidiaries, Saab said.
“We definitely will not accept” Mr. Lofalk’s bid to end the reorganization, said Victor Muller, the Dutch entrepreneur who bought Saab from General Motors in 2010. Mr. Muller added that he would seek to have a new administrator appointed, reported The New York Times.
Mr. Lofalk “is completely focused on an ownership change,” Mr. Muller said. “He wants to force Swedish Automobile to sell Saab.”
Saab’s main factory, in Trollhattan, Sweden, last turned out a car more than six months ago after unpaid suppliers stopped extending credit to the automaker, leaving Mr. Muller to fight an increasingly desperate battle to restart production before the company is declared bankrupt.
Saab won court protection from creditors last month to reorganize, and Mr. Lofalk was charged with helping it come up with a convincing business plan, even as the company held out for 245 million euros (about $335 million), in promised investments from two Chinese companies, Zhejiang Youngman Lotus Automobile and Pang Da Automobile Trade.
“The situation is rather complicated,” Mr. Muller said in a telephone interview. “We’ve seen the Chinese investors making U-turns in the last few days. That is very concerning because just last week they had confirmed their interest.”
On Friday, Mr. Muller said that the Chinese companies were now offering to buy Saab outright. He said he had declined their offer and called on them carry through with the original agreement.
Cecilia Tissel, an official with the Vanersborg District Court, said the administrator’s move reflected his belief that the reorganization "won’t be successful.” She said Saab had until next Thursday to come up with a response.
There has been growing uncertainty as to whether the Chinese investments would be coming, with Reuters last week citing Pang Da’s chairman, Pang Qinghua, as saying the investment plan was no longer valid because of the reorganization. The companies later said Mr. Pang’s statement had been the result of “a misunderstanding.”
Mr. Muller said he was confident that Saab would present its reorganization plan to the court as scheduled on Oct. 31.
“No way it’s over,” Mr. Muller said. “It’s a process that we’ll fight in court.”
Swedish Automobile, Mr. Muller’s holding company for Saab and his Spyker sports car business, said earlier Thursday that it had obtained financing from North Street Capital, an American private equity firm. Under that deal, North Street was to lend Saab $60 million and buy 2.39 million new shares in Swedish Automobile at $4.19 a share.
More Industry

Ownership Priorities are Shifting
A new survey shows that in the U.S. vehicle quality for generation Z is largely defined by advanced safety features, intuitive technology and premium sound systems.
Read More →
Pump Price Jump Calculated
ISeeCars.com examined fuel costs for different power trains, finding which ones have experienced the biggest hits since the war in Iran commenced.
Read More →
Black Book: Weekly Market Update
Wholesale values fell last week despite the spring season still being in the traditional full-gear mode, analysts said.
Read More →
Arkansas Auto Group Acquires First Indiana Rooftop
Performance Brokerage Services represented both the buyer and seller in the sale of Carver Toyota of Columbus by Carlock Automotive Group.
Read More →
Stellantis to Dive Into U.S. Lending
The multinational maker of Chrysler, Dodge, Jeep, Ram and multiple other brands received conditional approvals for a Utah-based industrial bank.
Read More →
New-Vehicle Prices Rise
With April sales down, higher prices on in-demand large vehicles helped inflate the overall ATP, though increases were under long-term averages, Cox Automotive reported.
Read More →
Black Book: Weekly Market Update
Last week in the wholesale automotive market proved to be a mixed bag, analysts reported.
Read More →
Black Book: Weekly Market Update
Conversion rates were flat last week at 63%, Black Book analysts calculated, as low-mileage and almost-near units outpaced the overall market.
Read More →
EU Auto Association Urges Action
Trade relations between the European Union and the U.S. are at risk, causing the European Automobile Manufacturers Association to push lawmakers to make a decision.
Read More →
Driving into the Super CFC Era
Understanding the risks and benefits of retail accounting and Super CFCs can help you better present options to your dealer partners.
Read More →