Saab automobile comes up with a new proposal for a solution for the ailing auto makerMonday, 05 December 2011
The Chinese vehicle manufacturer Youngman and Saab Chairman Victor Muller have agreed on what could be described as approach to a solution that can save Saab automobile.
According to reports from Swedish television yesterday, the draft agreement has been handed over to General Motors and means that the Saab employees could receive their salaries on Monday.
According to the draft agreement submitted to General Motors, the State Bank, Bank of China is to become one of the owners of the auto company instead of the Chinese distributor Pang Da.
Previously it was thought that Pang Da together with Youngman would take over the entire Saab's parent company, Swedish Automobile, but now Pang Da is disappearing in the background and out of the picture. Youngman is to be the only one shareholder, according to reports.
AdvertisementLast Friday, after long negotiations in Stockholm, Saab's chairman Victor Muller and leadership of the Chinese vehicle manufacturer Youngman agreed to these developing terms.
Having previously made deals with the Chinese dealer, Pang Da to take over Saab Automobile, it now becomes only a shareholder of Swedish Automobile which owns Saab.
The deal is similar to the solution that was being worked on last summer, with one important exception: Pang Da is no longer but has been replaced by the Chinese State banks, Bank of China.
The solution of this summer was that Pang Da and Youngman, would have a majority of nearly 54 percent of the company. Now, Youngman and the ownership of the bank now stand at just under 50 percent, all this is still to be approved by General Motors.
A major problem that is to be examined on Monday, already is that Youngman wants to get wages for the Saab employees, money that is already one week overdue.
Youngman had already made this promised, but the problem is that such promises, Youngman had brought before without any money being received.
If Saab employees don’t received their wages, the only option remain will be bankruptcy.
But if wages are paid and GM approves the new setup, Saab's Chairman Victor Muller will have his revenge.
From having being discarded, he will remain as a major shareholder in Saab together with Youngman.
The solution also includes that General Motors should get paid for their preferred shares, and that funders should bail out Saab's loan from the European Investment Bank, which means that the Swedish National Debt Office and the government will no longer need to stand as guarantors.
The cost of reviving car production in Trollhättan is also included in the preliminary business plan, which means that Youngman and Chinese Bank must invest billions in coming years.
Saab Automobile's information chief, Eric Geers would not comment on whether there is a new plan for the carmaker's future.
“I have no information about it. We'll have to wait a bit,” he told Swedish news agency TT.
Saab however said that it will continue to work with Pang Da man for the future and will continue to negotiate with them
According to report, Saab Automobile's CEO, Victor Muller has stepped back from previous information about the Chinese state bank, Bank of China would be included as prospective owners of the ongoing discussions.
By Scancomark.se Team
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