At least two potential buyers are reportedly looking to take over bankrupt Saab.
Could it really turn out to be a “Happy New Year” for Saab? Barely two weeks after finally filing for bankruptcy, a move most had expected would result in the liquidation of the long-struggling Swedish automaker, Saab could find salvation in the form of investors from either Turkey or India, industry insiders and company officials reveal.
A report out of Europe suggests an unidentified Turkish entity – which apparently has the support of that country’s government – is interested in purchasing Saab’s assets. So is Mahindra & Mahindra, one of the two largest Indian national automotive companies.
Details remain sketchy, but a senior Saab official tells TheDetroitBureau.com that “something could happen this month.” In fact, he added, a revival of the now-bankrupt automaker would have to be put in place this month or the bankruptcy process might make it impossible to put all the pieces back together again.
The alternative would be to sell off those pieces, which would range from individual product lines to the Saab factory in Trollhattan, Sweden. It was considered one of the most modern in General Motors’ global production network before GM sold off Saab in early 2010. But it also has a significant drawback, according to sources.
“Sweden is one of the most expensive places in Europe to do business,” noted a Saab company insider – who also pointed out that workers at the Trollhattan plant didn’t exactly do themselves a favor by pressing to take Saab into bankruptcy. That’s the sort of militancy that might drive off potential buyers, he said.
Saab’s decision to voluntarily file for bankruptcy on December 19th took few by surprise. The company’s situation has been steadily worsening since March, when a group of key suppliers decided to boycott the Trollhattan plant until outstanding bills were paid.
In the months that followed Saab Chairman Victor Muller announced a series of potential deals meant to raise cash and save the maker – but each proposed venture eventually faltered, notably including a proposal by the Chinese automaker Zhejiang Youngman Lotus to buy Saab outright. That bid was vetoed by GM which refused to authorize the sale of its intellectual property – or provide the necessary engines and other components – to a company that might compete with GM in China, one of its largest markets.
It remains to be seen if GM would see things more positively if Saab finds a buyer in India or Turkey.
There are conflicting reports about whether Mahindra is, indeed, interested in acquiring Saab. The Saab official acknowledged there are at least preliminary discussions underway, though a spokesman for the Mumbai-based manufacturer initially issued a denial. CarTradeIndia.com, meanwhile, cites several sources indicating Mahindra is trying to arrange a meeting with the two Swedish executors handling the Saab bankruptcy.
There may be a glitch, however. A separate report indicates those executors have declined to meet with Lars Carlstrom, the representative for Mahindra, India’s largest automaker, because he had previously done business with Russian oligarch Vladimir Antonov.
Antonov has been hovering around the periphery of Saab since GM first offered it for sale. He was a one-time partner of Victor Muller’s but had to remove himself to get GM to sell Saab to the Dutch entrepreneur. Muller later made several offers to invest in Saab as its finances worsened but was repeatedly rebuffed.
As for the second deal now being reported, no one has yet identified the potential Turkish buyer – even though several reports suggest the entity has the backing of Turkey’s government.
With the Swedish court-assigned executors looking to move fast it seems likely that any serious buyer will have to come out into the open rather quickly.