Swedish Automobile May Liquidate as Debt May Trump Saab, Spyker Sales Cash
Swedish Automobile NV, the Dutch owner of Saab Automobile, may liquidate even if it succeeds in selling the former General Motors Co. brand, as the proceeds may not be enough to pay off creditors.
Swedish Automobile, which has tentative agreements to dispose of Saab as well as its Spyker sports-car business, will consider “all of its options,” including a voluntary liquidation should the deals go through, the Zeewolde, Netherlands-based company said today in a statement, according to Bloomberg.
The transactions would raise 132 million euros ($181 million) and would be insufficient to cover the company’s 136.5 million euros in debt, said Swedish Automobile, also known as Swan. A lack of approvals and final agreements on the deals raises questions about “the future of Swan and any settlement with stakeholders,” the company said.
GM, which sold Trollhaettan, Sweden-based Saab last year to the sports-car manufacturer, then called Spyker Cars, said on Nov. 7 that it wouldn’t approve a planned shift of the unit to two companies in China as the Detroit-based automaker sought to protect its interests in the country. Saab has built few cars since it first stopped production in March because of a lack of cash, and is under court-administered protection from creditors.
Clearance of the Saab sale is also required from Chinese authorities, the Swedish government and the European Investment Bank. The preliminary agreement with Zhejiang Youngman Lotus Automobile and Pang Da Automobile Trade Co., the prospective Saab buyers, is valid until Nov. 15. Swedish Automobile said today that it’s in discussions with GM about gaining the U.S. carmaker’s consent.
Swedish Automobile is also continuing talks with North Street Capital LP about a final agreement on the sale of Spyker. The Greenwich, Connecticut-based private-equity firm tentatively agreed in September to buy the manufacturer of the C8 Aileron supercar for 32 million euros.
More Industry

Kia Closes Out Summer With a Bang
Its U.S. subsidiary broke multiple records in August, in part due to a surge of demand for hybrids models.
Read More →
Indiana Dealership Changes Hands
A 30-year-old Ford dealership in Indiana has a new owner and will soon be undergoing renovations to meet manufacturer requirements.
Read More →
Texas Dealership No Longer in the Family
The Ford store, a longtime cornerstone of the Houston market, is now part of one of the fastest-growing U.S. auto groups.
Read More →
Genesis Grows California Presence
The Cardinale Automotive Group opened its third Genesis rooftop in the Golden State, Genesis of San Bruno, a stand-alone dealership serving the San Francisco Bay Area.
Read More →
August Auto Sales a Mixed Bag
An early forecast shows strong business despite consumer hurdles, and hybrids are a big piece of their affordability coping strategy.
Read More →
EV Market Humming Along
July sales show steady growth as the segment stabilizes from last year’s artificial surge following pullback of federal support.
Read More →
Auto Loan Delinquency Rates Stabilize
Auto loans are a main driver of nonmortgage consumer debt, but delinquency rates stabilized in the second quarter across all credit risk tiers.
Read More →
EV Sales Recover in Q2
The EV sales roller coaster continues as numbers show improvement, but industry experts predict a year-over-year third-quarter decline and fourth-quarter jump.
Read More →
The Cheapest Hybrids to Fuel
The powertrain is increasing in popularity, in no small part due to its fuel economy. A new report lists the most efficient hybrids on the market.
Read More →
Hybrids and SUVs Gaining Ground
The most recent Kelley Blue Book Brand Watch found that only two nonluxury brands increased in shopper consideration, buoyed by their hybrid and SUV offerings.
Read More →