Saab's North American chief Tim Colbeck tells suppliers the maker has won at least a temporary reprieve.
It’s proving a lot more risky than most folks might have anticipated to bet against the struggling Swedish automaker Saab. Just ask administrator Guy Lofalk.
Barely a week ago, he had recommended that the courts end Saab’s voluntary reorganization, which would have meant the collapse of the company, which has been struggling to find investors – or a buyer – since last spring. Instead, Lofalk has been fired and replaced with what appears to be a more willing administrator while Saab itself will have some more time to pull together a deal, according to an e-mail sent by Saab Cars North America President Tim Colbeck to suppliers.
“There was positive progress in the negotiation” with Chinese carmaker Zhejiang Youngman Lotus, the executive reported, adding that Victor Muller, Saab’s global chairman, “remained optimistic an agreement would be reached in the short term.”
Muller’s Dutch-based Swedish Cars purchased Saab from General Motors in early 2010 but quickly ran into financial problems. In turn, that led unpaid suppliers to launch a boycott, last March. The maker’s headquarters assembly plant, in Trollhattan, Sweden, has been shuttered ever since.
A series of deals meant to save the company have collapsed or been stalled in recent months, including one that would have led to the sale of Saab to Zhejiang Youngman and China’s leading car dealer network Pang Da.
Complicating matters, General Motors has said it would effectively veto a sale to the Chinese by refusing to sell them critical technology, including engines used in Saab products, as well as the 9-4X crossover produced at a GM plant in Mexico.
Saab officials are also working to change GM’s position.
The ouster of Lofalk, who had been openly negative about Saab’s chances since being assigned to the company in September, was followed by news that a court hearing scheduled for December 15th has been delayed. The maker will now present its case to the court next Monday.
At that point it will seek an extension of the original three-month reorganization process, noted Colbeck. That would give it until sometime in March to pull a deal together.