Posted on 10/21/2009 3:44:27 PM PDT by WesternCulture
Saab Automobile has received permission to borrow 4 billion kronor from the European Investment Bank, the bank’s board revealed on Wednesday.
Prior to Wednesday’s meeting, most indications were that the EIB board, which includes representatives from all 27 European Union members states, would approve Saab’s request.
The EIB leadership group had recommended to the board that the bank agree to lend the Swedish car company up to €400 million, or roughly 4.1 billion kronor ($590 million), having concluded that Saab’s application was sufficiently strong.
The loan is a critical lifeline for Saab, and was a key element for the planned takeover of the company by the Koenigsegg Group.
“It wasn’t totally unexpected. It was an incredibly important step for Saab’s future. Without the loan, it would have been a nonstarter,” Jöran Hägglund, a state secretary with Sweden’s industry ministry, told the TT news agency.
The money, mainly targeted at cleaner and more fuel-efficient production, marks a huge step towards the purchase of Saab from its US parent company General Motors by Swedish sports car maker Koenigsegg and Beijing Automotive Industry Holding Co Ltd (BAIC).
"The loan will be used for research and development activities for the improvement of fuel efficiency and safety including new tooling for the production of cleaner and safer cars, subject to the European Commission's approval of the Swedish state guarantee," said a statement by the EIB.
Stockholm has repeatedly refused to take a stake in Saab, but Koenigsegg had asked the Swedish government -- unconvinced about its business plan -- to act as a guarantor.
Koenigsegg had been short 3 billion kronor to complete the acquisition of Saab first announced in June, though the total purchase price has never been disclosed.
Saab employs 3,400 people in Sweden alone and sold just over 93,000 cars worldwide in 2008.
Koenigsegg Group, founded in 1994, has just 45 employees and produces 18 high-end sports cars a year at more than a million euros ($1.4 million) each.
Under GM's stewardship, Saab rarely posted a profit and last year lost 3 billion kronor.
It seems both SAAB and Volvo will become European again.
As a Swede and as a present Volvo owner (and former SAAB owner), I wish to thank America for your belief in our products.
You have aided the core industries of my nation. That matters.
We are on your side. My
The next car I buy will be an American one.
SAAB should get a southern US state governor to give it $1 billion so to build a factory in their state....
Heck US states have been giving tax dollars to foreign car makers for years....before the Feds bailed out the Big Three. Saab just needs to apply
“Heck US states have been giving tax dollars to foreign car makers for years....before the Feds bailed out the Big Three. Saab just needs to apply”
- One day, all people will drive Peugeots, German cars, Toyotas and perhaps some also will drive Volvos.
Personally, I will never, EVER, buy anything else than a well equipped Volvo.
Call my car taste whatever you may, it is not I who gets owned on the Autobahn when the going gets rough.. and all the way down to cities like Milan and Florence I’ll have the speakers bumping with music like this:
http://www.youtube.com/watch?v=yqSCsbRL2mk
It seems a lot of people love Saabs.
I hate them.
Been in plenty and can’t believe the owners payed good money for it.
Like driving a Go-cart or something.
My cousin owned a brand new one back in the 80’s.
3 weeks old the whole right front wheel assembly collapsed while parked in a lot.
He was lucky not to be driving it at the time.
My uncle bought a beautiful one about 7 years ago then Traded it in like 8 months later.
junk
I drive a 2002 Saab 9-3 and it is excellent.
I’ve had a few rentals in my time when my car was in the shop. A new Maxima (which was very nice but not as nice as my Saab), a new Pontiac G6 (simply horrible, I can’t believe it sold for $20k or so new), and a Camry (good, but still, nowhere near as nice as my Saab).
My Saab has given me no problems. I have heard that starting with the 2003 models, one takes their chances. I lucked out with the 2002.
I have a freind who’s brother seems to collect old Saabs.
Last time i was over there was about six of them sitting in his garage and driveway.
I must admit i heven’t been in one in years.
I’m sure the new ones must be nice ($$$) and feel like your driving in an actual car.
I just saw a brand new Maxima on the highway the other day.
Pretty sweet looking redesign from what i saw.
Currently i’m driving a Brand new looking 1993 Infiniti J30 with only 42,000 miles.
Should last me a while.
I hope nothing big breaks....
My Saab cost $30k or so when I got it, with 0.9% financing. It made it a very affordable car for me at the time.
For some reason, among people I know at least, it has a higher perceived value than $30k. People seem to think it’s a $40k car, not a $30k car.
At the time I was looking at Cars, I was building a Toyota online and as I added stuff I wanted, the price creeped up so that it was approaching the high 20s. I figured I’d just get the Saab for a few more bucks. I like the car - it serves me well.
The 9-5 as well as the second 9-3 generation are very reliable constructions.
Personally, I am a Volvo owner, but I seldom hear complaints about the vehicles SAAB make today.
what happenedwith the stock price?
my guess is more money down a rat hole, glad it isn’t mine.
“What happened with the stock price?
My guess is more money down a rat hole, glad it isn’t mine.”
- My resoning;
If SAAB survives coming governernment experiments the better.
If not, drop it.
I’d bet on C Koenigsegg though.
He sems like the kind of guy knowing how to beat odds.
Go, kid!
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