P&A Providers & Administrators
MenuMENU
SearchSEARCH

Saab's Hopes Fade as Chinese Investors Lose Interest

October 20, 2011
3 min to read


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.

Ad Loading...


“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.”

Ad Loading...


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would be coming, with Reuters last week citing Pang Da’s chairman, Pang Qinghua, as saying the investment plan was no longer valid because of the reorganization.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.”

Ad Loading...


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

Photo of gray SUV plugged into public electric-vehicle charger in parking lot
Industryby Hannah MitchellJuly 21, 2026

World EV Adoption Set to Grow

A new report says the segment, despite recent setbacks in some regions, is poised for acceleration as many countries look to reduce pollution.

Read More →
Bar chart of truck and SUV segments' weekly value change
Industryby StaffJuly 21, 2026

Black Book: Weekly Market Update

Wholesale automotive auction business stayed steady last week as bidders encountered lower prices, analysts observed.

Read More →
laptop with blue car on screen on a shopping website, Clear Costs Convert
Industryby Lauren LawrenceJuly 21, 2026

Pricing Transparency Drives Purchase Consideration

An annual study by JD Power found that clear pricing matters to consumers on automaker websites, so much so that it increases their purchase consideration.

Read More →
Ad Loading...
Bar graphic of used-car segment weekly change
Industryby StaffJuly 14, 2026

Black Book: Weekly Market Update

Used-vehicle market depreciation was the prevailing story in the wholesale market last week.

Read More →
Light-blue Fiat car parked on a sunny Chicago street
Industryby Hannah MitchellJuly 14, 2026

Smaller Is Looking Better

A growing number of Americans in the market for a new vehicle are opting for more affordable options, not waiting for market stability to bite the bullet.

Read More →
man sitting at desk using calculator with charts in front of him, to-go coffee cup on desk, rising and falling data chart in front
Industryby Lauren LawrenceJuly 14, 2026

U.S. EV Market Slowly Stabilizes

U.S. electric-vehicle interest is slowly stabilizing since a major dip in sales after last year's end of the federal EV tax credit, and hybrids remain the leading electrified power train.

Read More →
Ad Loading...
blue background, map of the world with connecting lights and an electric vehicle emblem in the middle
Industryby Lauren LawrenceJuly 8, 2026

Global EV Market Entering New Phase

Automakers are making investments to lower battery costs and optimize production to meet changing consumer needs.

Read More →
Bar chart showing week-over-week wholesale automotive price change
Industryby StaffJuly 7, 2026

Black Book Weekly Market Update

The holiday weekend, not surprisingly, put a drag on wholesale automotive activity last week, analysts observed.

Read More →
Photo of Honda CR-V SUV on two-lane road next to roadside trees
Industryby Hannah MitchellJuly 1, 2026

Auto Affordability in Context

Cox Automotive points out the complex circumstances that have led to eye-popping vehicle prices.

Read More →
Ad Loading...
Line chart of used-vehicle days to turn over past week
Industryby StaffJune 30, 2026

Black Book: Weekly Market Update

Automotive auction inventory increased last week, giving choosy bidders even more leeway.

Read More →