Cash-shy Swedish carmaker Saab is still out panhandling it seems, but maybe things are looking more hopeful.
After the Russian banker (Vladimit Antonov) fell through, after the Chinese company (Hawtai) didn't happen, now they're on to "door #3" as Monty Hall might have said under similar circumstances on his "Let's Make a Deal" tv show.
This time it's Pang Da Automobile, according to Automotive News. The Chinese dealership chain that apparently is talking about a $150-155 million deal that would give Saab enough money to reopen its idled assembly plant (it's been closed over 45 days now) and give Pang Da sales rights in China plus 24% (originally announced as 29.9%) of the Saab company.
Rumor was that Saab was talking with several Chinese companies, looking for that apparently elusive white knight with cash, and Pang Da is no slouch. They just pulled off a billion dollar IPO that was the second largest Chinese IPO this year. Cash? They got it alright. But is it enough?
Saab is calling it "medium term funding" which has to make you wonder what long term funding would mean. Still, the Chinese company is a dealership chain so their initial talks give them a chance to buy 40 million euros worth of vehicles immediately, which will line Saab's pockets for at least a little while, during which all the rest of the ducks can be put in a row to finalize the "memorandum of understanding" that the two corporations have signed.
Meanwhile, if you are in the market to buy a new or used car, think twice before you buy Saab. Here today, gone tomorrow could mean "stuck" for you. On the other hand, maybe you'll get a heck of a deal on that used Saab?
ABOUT THE AUTHOR
Known nationwide as a leading Lemon Law attorney, Ronald L. Burdge has represented literally thousands of consumers in "lemon" lawsuits and actively co-counsels and coaches other Consumer Law attorneys. From 2005 through 2018, attorney Ronald L. Burdge has been named as the only Lemon Law Ohio Super Lawyer by Law and Politics magazine and Thomson Reuters Corp., Professional Division. Burdge restricts his practice to Lemon Law and Consumer Law cases. The Ohio Super Lawyer results are published annually in the January issue of Cincinnati Magazine. Ronald L. Burdge was named Consumer Law Trial Lawyer of the Year 2004 by the National Association of Consumer Advocates, the nation's largest organization of consumer law private and government attorneys. "Your impact on the auto industry has been magnified many times over because of the trail you blazed for others," stated NACA's Executive Director, Will Ogburn. Burdge has represented thousands of consumers in Ohio, Kentucky and elsewhere since 1978 and is a frequent lecturer to national, state and local Bar Associations and Judicial organizations. Burdge is admitted to Ohio's state and federal courts, Kentucky's state courts, and Indiana's federal courts. Other court admissions are on a "pro hac" temporary, case by cases basis.