On Monday, Swedish Automobile presented the restructuring plan of Saab Automobile to the company’s creditors at a preliminary meeting in Vanersborg, Sweden.
Saab’s management informed the creditors about the key points of the reorganization process, which has the support both of the administrators who are overseeing the process as well as future owners Pang Da and Youngman.
The two Chinese companies have committed to provide €50 million (US $69.6 million) in order to fund the restructuring process. They have also pledge to give at least €600 million (US $835.8 million) in 2012 and 2013 to restart production and clear the carmaker of all its debts.
Pang Da and Youngman claim to have made plans to secure Saab’s future existence by expanding its model line-up and setting up new operations in China. Among other measures, the plan also calls for cutting operating costs by reducing the workforce by 500 employees.
The new owners plan to accelerate Saab’s penetration in the Chinese market as well as other emerging countries including Russia. They also want to restart production as soon as possible and reposition Saab as a “distinctive, near premium brand supported by a renewed and broadened portfolio”.
The sales target set for next year is a modest 35,000-55,000 units. For 2013, however, Saab is supposed to ramp up production and sales drastically, practically doubling 2012’s figures to 75-85,000 cars annually.
The next two years are seen by Pang Da and Youngman as “transitional” and they expect Saab to be profitable again by 2014. According to the plan they presented, they aim to vastly increase annual production to 185-205,000 units in the long run.
Somewhere in the statement, though, was a rather interesting statement: “Saab Automobile has not received the funds from Pang Da and Youngman that have been committed for today.”
You can make what you want of that. We sincerely hope that, even though it does sound ominously familiar, this is just a glitch and the deal will eventually go through.
