As you may know already, on Friday we announced that Swedish Automobile agreed to sale Saab brand to China’s Pang Da and Youngman for 100 million euros ($142 million). Today the two companies announced that they are planning to provide a 50 million euro bridge loan as well as 610 million euros in long-term financing from 2012.
That’s right, 600 million euros will be used to restart production, to settle company’s clear and due debts and to fund operations for the 2012-2013 medium-term timeframe.
Some of the key actions during reorganization will be establishing a new ownership structure with Pang Da and Youngman as strategic partners, reaching a new agreement with with creditors on repayment of outstanding debt to restore Saab Automobile’s supply chain, reduce the structural costs by SEK1 billion and reduce the headcount by 500 employees.
Moreover, the two Chinese companies want to restore confidence and trust with all key stakeholders. As expected, the two companies want to accelerate access to China as major growth market, but also make new distributorship agreements in other emerging markets like Russia. Furthermore, the new Saab will start building new products for traditional key markets, while the Chinese market will get the new 9-5 SportCombi and the 9-4X.
Regarding the sales goals, the new Saab wants to sell between 35-55,000 cars in 2012 and 75-85,000 cars in 2013. Still, profitability is expected no later than 2014, as the company has a long term volume outlook of 185-205,000 cars.