Pang Da, Youngman announce €610 million in long-term financing for Saab

Article by Christian A., on October 31, 2011

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.

Topics: subaru

If you liked the article, share on:

Comments

Recommended

The 2018 Cadillac CTS-V sedan will be getting a new paint job that will give it a unique icy feel. Dubbed the Glacier Metallic Edition, this special model was built...
by - August 23, 2017
During the North American International Auto Show at Detroit in 2015, Hyundai introduced a concept pickup truck they named the Santa Cruz. This model took home the Concept Truck of...
by - August 23, 2017
Porsche introduces the technologically advanced wheels with braided carbon fiber. These will be initially available on the 911 Turbo S Exclusive Series. Being the first car manufacturer to offer such...
by - August 23, 2017
All eyes were turned to the fuchsia pink bespoke McLaren 720S MSO at the 2017 Pebble Beach Concours d’Elegance Sunday. Surely, we can understand why. The one-off supercar, which was...
by - August 23, 2017
Hyundai Motor Group – including both Hyundai Motor and Kia Motors – has disclosed a wide-ranging plan to introduce 31 environment-friendly models in a new development roadmap that aims to...
by - August 22, 2017
Facebook

Youtube Channel

Tip Us
Do you have a tip for us?
Did you film an important event?
Contact us
Newsletter
Subscribe to our newsletter!
Subscribe
Galleries