Saab Secures Agreements with Chinese Investors, Announces Plan for Three New Vehicle Models

Following what has been some rather challenging times recently, Saab revealed some more good news on Monday. 

The company announced the signing of final agreements securing investments with China’s auto dealership chain Pang Da Automobile Trade Co. and automaker Zhejiang Youngman Lotus Automobile Co. that have been in the works since last month.

The company also revealed that it will be partnering with Youngman Passenger Car Group Co. — a branch of the Youngman Automobile Group — on the formation of a Sweden-based new product joint venture company designed to develop three new Saab models.

And after troubles such as production disruptions — due in large part to Saab’s inability to pay suppliers — and the company having to send its employees home without pay in mid-June because of lack of funding, Saab’s future is looking up, as Monday’s announcement follows some good news announced recently.

The automaker negotiated a potential leaseback deal to sell a stake in its Saab Automobile Property and received an $18.4 million order for 582 vehicles just last week. And the automaker is off to a good start this week, as well.

This investment will secure funding for Swedish Automobile and Saab, and company officials noted that the parties involved continue to work towards executing additional distribution and manufacturing joint ventures.

"I am pleased to announce the signing of binding agreements (subject to obtaining regulatory approvals) with Pang Da and Youngman, as it underlines the confidence of all parties in a successful tripartite partnership,” said Victor Mueller, chief executive officer of Swedish Automobile and Saab.

“Establishing the new product joint venture is a major step for both Saab Automobile and Youngman Passenger Car and marks the start of an exciting new partnership. This joint venture offers Saab Automobile the opportunity to develop models that were not envisaged nor funded in our original business plan: for instance, we will now be able to develop a small entry level Saab, a car that has long been on the top of our wish list,” he continued.

The recent finalized agreements also allows for the return of shareholder and investor, Vladamir Antonov  — CEO of international financial organization Convers Group—  to the company after he is cleared by the Swedish National Debt Office, among others parties.

“Mr. Vladimir Antonov’s interest in participating as an investor/financier in Swedish Automobile remains unwavering, but he is still awaiting a decision on his clearance from parties at interest following the Swedish National Debt Office recommendation to clear him over eight weeks ago. Once clearance has been obtained, Mr. Antonov can provide much needed financing and/or capital to Swedish Automobile/Saab Automobile at this critical time. We are pushing hard to obtain this vital clearance as soon as practically possible," Mueller said last week.

Moving on to the new conditional agreement with Youngman Passenger Car, the NPJV will be 50 percent owned by Saab and 50 percent by the Chinese company.

Company officials noted the NPJV will focus on developing three completely new Saab vehicles: the Saab 9-6X, Saab 9-7 and Saab 9-1.

Pang Qingnian, CEO of Youngman, noted: “The agreement on the new product joint venture brings together the best of both worlds, merging the industrial and financial strength of Youngman Passenger Car with the state-of-the-art technical expertise of Saab Automobile. The Saab 9-6X and Saab 9-7 will be key to enhancing the prestige of the Saab brand to an even larger group of customers in China and the US, while the entry level Saab 9-1 will appeal to urban motorists around the globe."

During this project, which is still subject to approval by Swedish authorities, Saab will be responsible for “controlling and managing the design, the development and testing process to the start of production and providing other necessary technical and quality control support.”

Youngman Passenger Car will be responsible for providing the necessary financial investments for the joint venture.

Pang Qinghua, CEO of Pang Da, also voiced his enthusiasm regarding the automaker’s future: “I am very happy to have signed binding agreements with our partners, which further feeds my confidence in a successful future for Saab Automobile. We were already impressed with Saab´s current and planned product portfolio to date and with the addition of three new Saab models, the brand will be even better positioned to meet demand in markets around the world and China in particular."

Saab 9-4X Crossover Earns Top Safety Pick 

In other company news, Saab announced Tuesday its new 9-4X crossover has earned a Top Safety Pick from the Insurance Institute for Highway Safety.

The crossover received the IIHS’s highest rating for crashworthiness, after the Saab 9-5 Sedan was awarded the same accolade, just three weeks ago.

"To achieve two Top Safety Picks in three weeks is, of course, extremely gratifying," says Per Lenhoff, head of safety development at Saab.

"Our main priority is always the protection of real people in real accidents, but the IIHS tests are a valuable guide for consumers and it is important for us to achieve good results,” he continued.

When being rated by the IIHS, a unit is judged as Good, Acceptable, Marginal or Poor in each of the tests and to achieve the Top Safety Pick award, cars must achieve the highest rating in all four procedures and should also be fitted with an electronic stability program.

“The Saab 9-4X brings car-like handling and ride qualities to the crossover segment. Key to its dynamic performance is a unique body structure, purpose-designed for a crossover application and free from compromises through adapting an existing sedan or wagon format,” the company noted while describing the vehicle.

The 9-4X crossover entry level price is $34,205 for front-wheel-drive and $48,835 for the 9-4X Aero XWD model.