Union sources from a Swedish delegation to China say manufacturer Youngman is “totally serious” concerning bidding for bankrupt Saab, but cautions there will be a potentially long approval time by regulatory authorities – with the receivers liable for wages.
The IF Metall union, representing around 1,500 blue-collar workers, sent an automotive specialist on the Shanghai trip at the invitation of Youngman, which, supplier sources have told just-auto, could inject around EUR1bn (US$1.3bn) in its efforts to restore the failed automaker.
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“He [union member] was with a delegation that met Youngman [who] showed them the factories they have,” IF Metall legal adviser Darko Davidovic told just-auto. “They showed them they have the financial possibilities to buy the whole of Saab.”
“They are totally serious – they have a lot of ideas.”
However, any sale to a Chinese operation would have to be evaluated and approved by the country’s National Development and Reform Commission (NDRC) – a process that could take up to three months.
Such a time-scale could hinder any sale as Saab is now in the hands of receivers – who are now liable for staff wages after 19 January – one month after the automaker declared itself bankrupt.
“They [receivers] have only one job – to sell it for the best price,” said Davidovic. I think they find a buyer in two weeks because they don’t have any money. Every day costs a lot of money – they have to sell pieces from the company to have the salaries paid.”
Part of those proceeds will come from the sale of Saab’s museum featuring more than 100 of the company’s most iconic brands, but the union official conceded this would raise only “a couple of million.”
The IF Metall delegate on the Shanghai trip also reports Youngman approached a further company with a view to paying the Swedish receivers in the interim, while any NDRC approval was sought, although details of this are unclear.
“They [Saab] have to have 300-400 people employed and all the costs of running the factory,” said Davidovic. “It is the minimum people just to keep the boat floating – maintenance, heat, water, electricity serving the machines so they don’t break.”
Youngman was not immediately available for comment.
