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Saab’s Gone Bust

3499064 1024x835 Saab’s Gone Bust

Saab’s history has been peppered with great successes and failures. While no car manufactures is perfect, in recent months the firm has found itself in deep financial trouble. Trying to find a way out from utter catastrophe, the company has unfortunately been unable to bring itself off the ledge of bankruptcy, taking a plunge that will certainly end badly. The conclusion of the Saab’s epic tale is now upon us, the only one question remains: what’s next?

Those who have been following Saabs battle will already know that its part owner General Motors (GM) has been halting any progress between Saab and several Chines companies including Zhejiang Yougnman Lotus Automobile. Largely to do with patent as well as technological licenses, the deal was unable to reach its conclusion and ultimately led the courts to accept bankruptcy proceedings.

Production has been sparse, with most of the progress being completely halted in April. Since than the main plant in Trollhattan, Sweden has turned into a ghost town rather than a thriving community. Incapable of paying its workers or its suppliers, Saab didn’t look like its past self.

The BBC correspondents spoke to auto manufacturer representatives who said that GM’s position and opinions concerning Youngman left them with an impossible decision. In order to appeals the creditors as well as produce complete solutions to the financial woes, the company believed that bankruptcy is the only fair way to proceed rather than continuing negotations.

Saabs Chief executive Victor Muller noted that much of the decisions were led by GM. This was so much the case that their veto of the Chinese investment was seen as the “last nail in the coffin” of a company that had been producing strong and reliable cars for a great part of the last century.

While rescue plans and alternative plans had been drawn up, it now seems certain that Saab will have a difficult time reshuffling and reimagining itself. While there is a glimmer of hope for the company, it seems now that its next steps will take place within law frim negotiation rooms and courthouses rather than on the factory floor.

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Saab’s final days?

saab needs cash Saab’s final days?

The Swedish car company has faced a troubling few years. Since GM’s sale of the company to Spyker in 2010 a great many things have gone wrong for the company. Faced with decreased sales and unpaid bills, the company had to reach out to the Chinese market for support.  While all appeared to be fine as crucial deal was readying to close, everything began to unravel, giving Saab just a week to set things right.

Certainly a tall order, the owners of the company have been given a week to provide the Swedish court a rescue plan or ultimately face bankruptcy proceedings. The company still owes both its employees and suppliers a great deal of money; money that needs to be paid in order for work to once more commence. Unions and companies alike have called in their debts and Saab may not be able to pay them back.

This new pressure arises out of the ashes of a deal with two Chinese firms Zhejiang Youngman Lotus Automobile, as well as a bank. The deal was recently blocked from taking place by the former owner GM. The company apposed the deal because of a transfer of intellectual property which might have negatively effected GM’s place in the auto industry. While the talks have not stopped between the Swedish automaker and the Chinese companies the scene continues to be tense. GM has repeatedly opposed the move, threatening to remove their support altogether from the ailing company.

Halting talks meant that the hope for funding has been severed. Already having entered bankruptcy protection in September, the three months original given to solve the issue are coming to a close. Indeed they are to sever all ties and go into liquidation if they do not comply with the courts wishes.

A company that has represented the country for decades, it has been a part of the country’s landscape. Indeed, the company and its 3,700 employees face gruelling times ahead. While everything appeared to be finally going there way, if a plan is not reached than this may very well be the end of Saab.  They have until December 16th to come up with an idea or face the disastrous consequences.

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Chinese Firms to buy Saab

saab through trees Chinese Firms to buy Saab

As the world economic power shifts to the eastern markets, the car industry appears to be affected more than ever.  Companies are barely surviving the deluge with some facing austere cuts or even bankruptcy. In order to avoid such a miserable future the Swedish car manufacturer Saab has turned to Chinese firms to take over their troubling business.

A move that will certainly be followed by other ailing members, the €100 million (£88 million) deal will allow Pang Da and Youngman to finally move on the automaker. The companies have been trying to make their way into the European market for quite some time but Saab has been rejecting their offers. Now in court trying to limit the outfall of their financial strains, the company has until November 15 to decide whether to accept the offer.

Originally owned by GM, the company’s future has been in question for many months. The two Chinese companies are planning to invest nearly €240 million into the new venture, rejuvenating the company to its past glories. Saab CEO Victor Muller has said that the new designs and plans will certainly help the company continue making great cars for many more years.

Rather than reorganizing itself using the Swedish court system, the alternative is already being pursued. While it has not been fully stopped proceedings and the company has yet to hear back from the court dealing with the request, BBC analysts have suggested that there was no other move than to declare bankruptcy. Many investors as well as workers were expecting to be paid what they are owed through this new initiative.

Few remained unaffected by the economic crash. While we instantly think about the United States market as an example of hard times, the European markets aren’t doing much better. With Eurozone policies currently in the works, many nations of the European Union have been looking to borrow money from China. As the dynamic changes so too will the companies. Based on all these alterations the next century will certainly be an interesting one. Let us hope that Saab continues to grow and prosper under its new ownership.

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Asking The Experts

Survey Asking The Experts

“If you really want to know about cars, ask the experts.”

So says Which? Car editor Richard Headland. But who are these experts? Manufacturers? (Bit biased.) Dealers? (Bit too profit making.) Garage owners? Mechanics?

None of the above. According to Richard, the experts are “… the people who drive every day.”

With (allegedly) no brand loyalty – although that is a touch difficult to swallow – it’s the everyday driver who can tell you what is good, and bad, about the cars that they drive.  Personally cars are like salad cream – it has to be Heinz – but in these economically frugal days, to paraphrase Joseph with his dreamcoat “Any car will do.”

So what did Which? Car find out in a Summer 2011 survey for new and used cars?

Makers of the most reliable cars

hyundai logo1 300x213 Asking The ExpertsHyundai; according to the survey, has a great range of cars, is value for money, reliable and offer transferable, five-year warranties at a time when everybody is looking to cut back and make their money go further. In fact, a Hyundai has, on average, a 20% chance of a fault in 12 months from new. That’s not the best – but more about that later.

Car that makes its owners happy

In first place, a car that was actually phased out 6 years ago, but still holds a place in its owners’ hearts – the Toyota Yaris Verso.

Second, the VW Passat CC

Third, Land Rover Discovery – but, as you’ll see later, that was the only good news for the Land Rover in this survey.

Most Loved cars

skoda logo new 150x150 Asking The ExpertsIn the Top 10 of this list, there’s 4 Skodas – the Yeti, (Never seen one of them, although the apparantly exist icon smile Asking The Experts ), Superb Estate, old Superb and new Superb.

But down there at the bottom…

Most ‘un-loved’ cars

Strictly not a true title but I didn’t really want to put ‘Most loved cars – well, not really’ as a title so, at the bottom of the most loved cars, with a satisfaction percentage of 49.4% (No; I’ve no idea how they were calculated but I’m guessing at a “How much do you love this car?” question) is the Renault Laguna Sport Tourer.

It’s in good company, as 7 out of the bottom 10 are built by French manufacturers (did they ask Al Murray to put this survey together?) with poor handling, performance, build quality and poor non-engine electrics cited as reasons for this particular poor performance.

So, it seems that Which? Car readers and members seem to like practical good-value cars (like Skoda, so it seems), aren’t keen on the “unreliable and fault-prone” Gallic cars like Renault and Peugeot and really can’t be bothered with the ‘satisfaction factor’ of so-called luxury brands like Mercedes, BMW and VW – giving them an average score, the same as Alfa Romeo and Citreon.

Says a lot more about them than any other statistic.

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toyota avensis 150x150 Asking The ExpertsThe survey looked at over 67,000 cars – new and used – to get the results, and other ‘winners’ included:

Best Buy (Medium Sector aka ‘most popular car bought’ sector) – Kia Cee’d estate
Best value cars based on dependability and running costs (Medium Sector) – Honda Jazz and Skoda Fabia diesel
Best Medium Cars (Used) – Mazda 3, VW Golf, VW Jetta, Ford Focus
Best MPV (Used) – Honda FRV, Skoda Roomster, Toyota Previa

But the biggest winner of all, an undisputed winner in the Large Section (Used) – and every other Large Section sector – was the Toyota Avensis. Often called “dull” in description by the questioned drivers, the petrol version scored way ahead of many of its rivals in the majority of cases.

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Korean cars 300x175 Asking The ExpertsAnd, if you want further proof of reliability. What Car? in conjunction with Warranty Direct released a report suggesting that, for reliability, Japanese and Korean makes are the best.

Honda vehicles, for the 6th year in a row, are top of the pile (That’s the power of dreams, eh?) with a mere 9% chance of developing a fault from new in the first 12 months. Toyota, Suzuki, Lexus and Mitsubishi fill the next four places.

And down at the bottom? Close your ears Land Rover – it’s you – with a 55% chance of a fault. And you won’t have to travel too far to have a chat with your fellow relegation favourites because they are all European. Alfa Romeo, Renault and Saab are all in the mid forties when it comes to chance of a developing fault from new.

Sorry Europe! Time to get those metaphorical socks pulled up!

Posted in Alfa Romeo, BMW, Car and Van Info, Car Manufacturers, Ford, Honda, Hyundai, Land Rover, Latest Car News, Lexus, Mitsubishi, Peugeot, Renault, Saab, Skoda, Toyota1 Comment

A Saad Day For Saab

20SaabBadge A Saad Day For SaabThe Frankfurt Motor Show is one of the most prestigious motor shows in Europe, and one of the biggest in the world. Held biennially in, surprisingly, Frankfurt in Germany, it is a Mecca for car manufacturers to show off their best side as well as their future sellers, creations and prototypes.

And this year will be no different, with mysterious newcomers Eterniti zooming into view and the likes of Jaguar, Audi, Porsche, Opel/Vauxhall and SsangYong revealing prototypes and new launches.

But, there will be one car manufacturer very conspicuous by their absence.

SAAB

Why?

According to the manufacturer’s parent company, Dutch supercar maker Spyker - who bought the Swedish giant from General Motors in 2010 - instead of spending an absolute fortune on all the bells and whistles that a lavish stand at the Show requires, it has decided to concentrate on more ‘real’ issues at home, like paying staff wages and keeping its factory in Trollhattan going.

So, is that honourable or stupid? Missing out on promoting itself in Frankfurt could cost the company dear, but at least it has admitted that its financial predicament is, to say the very least, a bit dodgy. Basically, Saab isn’t selling enough cars.

  • In 2010, it sold 30,000 vehicles – 25% of what it needs to sell to just break even
  • In June 2010 it announced that it could no longer pay staff wages
  • It borrowed money, sold and re-let its property and then sold 582 cars to a chines buyer that gave it a stay of execution
  • And, at the end of August, the Sweden Debt Enforcement Agency are going to request in the strongest possible terms (i.e. demand) that Saab pay some of its creditors. As over 100 debt claims have been filed in the courts, this could well run into hundreds of thousands of pounds and cause, whisper the word quietly, bankruptcy.

Sadly, all these financial worries cat a shadow over Saab’s development of a new 9-3 saloon which, if rumours are true, could  just save the company.

For now, we can only wait. Applause though please for a company willing to look after its employees rather than spend thousands on self-promotion, however important. I’m sure there are a few at Frankfurt in the same position but unwilling to face facts.

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The Saab Question

saab 9 5 2006 The Saab Question

The economy has not been kind to many companies around the world. With bailouts and busts appearing to be the norm, it appears that no even Saab has gone completely unscathed. Anyone following the news will know that the company has had quite a bit of trouble getting back on its feet, including problems with paying its employees. But it appears that things are turning up for the car manufacture with a large deal in the works.

Only a few weeks ago the company has had so much trouble that it was unable to pay staff wages, pushing it one step closer to bankruptcy. The Swedish manufacture has suspended production due to falling demand, ultimately causing it to question its place within the market as it only sold 30,000 units last year.

The shock came after the US General Motors was on the verge of defeat, and Saab having been purchased by the company for some 20 years, it has have a falling reputation. With unsustainable mechanisms in work and poor oversight, Spykers takeover was said to bring the company more luck, but this has not come to pass.

With so much going wrong for the manufacturer, it is a pleasant surprise that it has been granted a rather big order for an unidentified Chinese buyer for a whopping €245m, pushing the car manufacture away from disaster. Nowhere near out of the woods just yet, the prepayment of €12m will sustain the company enough for it to get its employees working and its factories back to full capacity.

Producing cars that are quite high quality, it is a shock that such a well-established company is faltering so greatly. With the greater and grater demand of the Chinese market as well as the increasing power of the Asian nations, it appears tat investors now are more important than ever. Only the future will dictate how this deal will develop and whether the company will get as large a deal in the future.

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Saab Reveal The Nation’s Favourite Family Car Games

64303saa Backseat Face Snap001 Saab Reveal The Nations Favourite Family Car Games

Saab emerge fresh from compiling a nationwide search to find the country’s favourite family car games. Before I reveal the winner, allow me first to share my favourite in-car games.

Yellow Car – This involves shouting “yellow car!” every time you see a yellow car. Sometimes a point system comes into play. You get one point for a yellow car, two for a purple and three for a pink. Whoever has the most points by the end of the journey wins. There are some variants in which the sighting of a yellow car is accompanied by a hard thump on the arm for those who didn’t spot it first. I don’t like that version.

Fortunately/unfortunately – This game basically requires for you to take it in turns to tell a story. One person begins: “Dan and James took a holiday.” Then turns are taken – alternatively one must make things worse, the other make things better. “Unfortunately, their plane crashed.” “Fortunately, they managed to bail before impact.” “Unfortunately, their parachutes didn’t work.” You get the idea. You can pass hours in this manner.

“I’ll Tell You Why You’re Wrong”: Pretty self-explanatory, this one. Essentially, someone must make a statement – any one will do – and it is then up to someone else to tell them why they’re wrong. e.g. “We’re nearly there, now.” “I’ll tell you why you’re wrong. It’s likely we’ll hit traffic after coming off the motorway.” Admittedly, this game can cause more fights than even a particularly fraught and drunken round of Monopoly, but it’s fun nonetheless.

Well, they’re my favourites, anyway. The nation’s favourite, though, is apparently “Backseat Face Snap.” Never heard of that one.

Submitted by Renee Smith and her family from Merseyside, this game requires backseat passengers to decide on four facial expressions. The players then face each other and cover their faces. If their expressions match when they reveal their faces, they shout “snap!”. My word, that does sound like fun.

This national campaign was launched earlier in the year in an attempt to bring back quality family time when in the car. It encourages parents to look at more interactive ways of keeping their children entertained when travelling as a family.

Says Charles Toosey, Saab GB’s MD: “Our ‘Bring Back Family Time’ campaign came on the back of a recent poll of UK parents, which showed that many parents were not taking advantage of the fantastic opportunity to engage with their children whilst travelling in the car.

“With family life being so hectic these days, travelling in the car is one occasion when we can really spend quality time with each other.

“Congratulations to our competition winner Renee and our runners-up and thanks to all the families who sent in their favourite car game ideas. We are delighted to announce the results and we hope that families will be inspired to make the most of the quality time spent together in the car as they play them.”

Being the winning submission, Renne and her family are to be rewarded with an enviable ultimate fun family experience: a family ticket to Alton Towers, including accommodation at the amazing Alton Towers Resort Hotel, plus a complimentary Saab 9-3 SportWagon to drive for the weekend.

Should you require inspiration for keeping the tykes amused on long journeys, here’s a “cut-out-and-keep” collection of the nation’s favourite car games:

Backseat Face Snap

Decide on four faces, such as happy, sad, pull tongues and funny face. Next, face your challenger and cover your face with both hands in front. Count together 1, 2, 3…then reveal!

Are you the same? Shout “SNAP!” or let’s try again!

Submitted by Renee Smith and her family from Merseyside

I Like Bananas!

When you see a car, say “I like…” followed by something of that colour. For example, if you see a red car, shout “I like tomatoes!” or for a green car, you might say “I like apples!” Take it in turns as a family, and the winner of the round is the first to spot a yellow car and say “I like bananas!”

It’s simple, it makes the journey fly by and it’s a great game for even the youngest of children.

Submitted by Rachel Edney and her family from Tamworth.

Island Shipwreck

You and your group of passengers are stranded on an island with sea surrounding you and all you have are trees, plants, a fresh water stream and your beach wear.

When you come across a lorry on your journey, choose one item for your island. For example, if you see a supermarket lorry, you could choose a case of vegetables, or if you see a van with DIY on it, you could choose some tools to build a house. The idea is to write down all of the provisions you are collecting that you are going to need to survive on the island!

Want to make it harder or be more creative? You could choose items to create your very own paradise island or draw your island at the end of your journey. It’s amazing what lorries will pass you by!

Submitted by Dawn Whittaker and her family from Barnsley

Traffic Bingo Game

Give every passenger boards with small pictures or words on of things that you might find on your journey, such as speed limit signs, post boxes, and petrol stations (or perhaps you might want to make it harder with suggestions like windmills, cows and public telephones?). As you go along, tick off the boxes when you see the items on your board. The winner is the first one who has marked off the most boxes by the end of the journey.

Submitted by Emma Oldfield and her family from Chester

Themed Alphabet Game

It’s simple! Pick a theme, such as countries, fruit, movie stars, football clubs – anything that comes to mind! Work your way through the alphabet, taking it in turns to name something that belongs to your chosen theme. Can you find a word for those tricky letters such as Q, X and Z? Give it a go and see!

Submitted by Elisabeth Barnwell and her family from Milton Keynes

Guess Upon a Rainbow

Give passengers a wipe-clean piece of card or board, which has all the colours of the rainbow on: red, yellow, pick, green, orange, purple and blue. It could be coloured spots, squares or lines or you could even create the board in the shape of a rainbow. You each have to spot something red on your journey that begins with R, then something yellow that begins with Y, something pink that begins with P and so on, working your way through the colours of the rainbow.

Once you’ve found items for every colour, to win, you must find something that has two of the colours of the rainbow on it. Want to make it more challenging? The item you find must begin with any letter of the word RAINBOW!

Submitted by Jamie Harwood and his family from East Sussex

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25 Years Of Saab’s Convertible

64212saa 25 years of the saab convertible 4 25 Years Of Saabs Convertible

2011 is a landmark anniversary for many companies, models and icons. Today we’re celebrating the 25th anniversary of Saab’s iconic Convertible – a car which few would argue hadn’t played a leading role in growing and moulding the shape of the automotive landscape.

In the past twenty five years, three generations of Saab Convertible have emerged, with almost 300,000 having been sold the world over.

Understandably in an effusive mood, Charles Toosey, Saab GB’s MD, says: “This year marks a momentous occasion for Saab, which we are delighted to be celebrating with our dealerships, staff and customers.

“At Saab, we are proud of our heritage and innovation, which has helped to shape the design, style and performance of the Convertible over the last 25 years, turning it into the exhilarating drive which it has become renowned for.”

Production of the Saab Convertible began in 1986 with a production run of just four hunfred Saab 900 Convertibles for the US market. Said car was an instant hit, and by the time it went on sale in Europe later that year, demand had exceeded production capacity.

Fast forward seven years to Autumn 1993 – the all-new Saab 900 Convertible arrives with the words: “We didn’t invent the Convertible, but we made a Saab of it.”

With increased storage capacity, a more stylish design and a move to a hydraulically powered soft-top, this second generation model and its Saab 9-3 evolution in 1998 became something of an icon.

Then came the third and current generation in 2003, which boasts the fastest soft-top in operation in its segment, automatic climate control adjustment for a “top down” heating mode and superior interior styling.

But what does the future hold for the Saab Convertible? Well, Saab celebrated the first anniversary of its rebirth as an independent company in February 2011 by launching an exclusive Independence Edition of its 9-3 Convertible.

The 1.9-litre TTiD Independence Edition Convertible is based on the top-of the-range Aero specification with a 180hp engine, six-speed automatic transmission and unique Amber Orange metallic paint finish, a limited edition serial number etched into the rear side windows, distinctive interior trim and comprehensive equipment.

Just 366 examples have been produced; one for each day during the first year and one extra for the start of a second year. Only 80 of these vehicles have been produced for the UK and are on sale at dealerships now.

Saab are treating this latest Saab 9-3 Convertible as the fruit of 25 years worth of experience in designing and engineering soft-top automobiles. Says Charles: “Now is a fantastic time to be a part of Saab as we celebrate 25 years of success for the Convertible and for the brand. With improving sales and exciting new products in the pipeline, Saab is looking to the future with confidence.”

So. Happy birthday, old sport.

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ClareClare

Clare has worked in the motor industry for over 13 years, gaining valuable experience in this field. Starting in vehicle inspection and insurance, Clare’s extensive insight into the motoring industry stood her in good stead when she started working for Nationwide Vehicle Contracts. Clare has now been with the company for 5 years, originally working as a leasing consultant and now as Sales Manager. In her spare time Clare enjoys spending time with her family and friends, swimming and going on holiday.

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