SAAB WATCH 2011...The Saga Continues!

10/28/11 – In a stunning turn in the SAAB WATCH 2011 saga, Saab Automotive announced early Friday that the company would be sold for $142 million to Chinese industry investors Pang Da Automotive Trade Co. and Zhejiang Youngman Lotus Automotive Co. Ironically, these are the same parties that Swedish Automotives rejected handing over the Saab reigns to late last week. As reported in The Wall Street Journal, this week, they have not only agreed to give up controlling interest in the troubled 60-year company, but to sell off the entire brand in a 60/40 split (60% to Youngman and 40% to Pang Da). It is still unclear as to how much current Saab Chairman, Victor Muller, will be involved in the future of the Swedish automotive manufacturer, but one has to think any high ranking suit in the Saab infrastructural will be replaced by a Chinese counterpart.

Saab was on the final day before they could possibly lose their creditor protection (equivalent to declaring bankruptcy) and had already pulled the plug on their restructuring process due to lack of funds. It seemed bleak that they would bounce back after refusing the original July deal with Chinese investors for a reported $245 million in loans and funds in exchange for 54% stake in the company. The Chinese held out, weighing their options, something Saab ran out of as time elapsed. When Saab realized the Chinese funding was being re-evaluated and the Chinese wanted to take complete control, the board publicly killed the deal between them. They were afraid the Saab name would be lost if sold overseas. Now it appears that Saab has been so backed up into the corner that they had no other choice but to sell. The two Chinese companies will now invest a higher price than the $245 million the original deal was for according to Mr. Muller, but the $142 million will buy out the currently issued stock held by Saab investors.

According to WSJ, Swedish Automobile (then called Spyker Cars NV) purchased Saab from GM in February 2010 for a price tag of $74 million. It claimed Saab would turn a profit by 2012, but instead, in 2012 Saab will have it’s third owner in three years. While the deal is still subject to approval by a slew of parties including GM and Chinese authorities, this is still the most comforting news for Saab in seven months filled with litigation, speculation and legal actions. It also stands out for the Chinese Automotive industry, which has been aggressively shopping for Western manufacturers to expand their international reach. Unfortunately, they have had little success. Besides Volvo, which was bought by Zhejiang Geely Holding Group Co. from Ford Motors last year, Saab will only be the second purchase of a foreign manufacturer by a Chinese based auto maker.

A memorendum of understanding has been signed between the two Chinese investors and Swedish Automobile and will be valid until November 15 of this year. This, however, will need to go through Saab’s laundry list of creditors who must approve the purposed reorganization process. They meet on Monday of next week to discuss the takeover. Until then, Saab is still in the woods, but a the clearing seems to be just ahead. Check in again with One Stop Motors as we continue our coverage of SAAB WATCH 2011 and feel free to visit us at www.OneStopMotors.com.

Tyler Baker; OSM Writer

( Source : The Wall Street Journal )

SAAB WATCH 2011!

If you’ve been following along with One Stop Motors as we’ve covered breaking news regarding the ongoing state of emergency at Saab Automotives (if so, respect), then you know Saab is standing at the edge of the financial plank, looking down. As the situation progresses, it appears as if the 70 year old company can’t catch a break. Still, the boardroom shuffle and court mandated drama has made Saab’s monitory misfortunes an entertaining spectacle for the world to watch. In honor of Saab’s constant grind between life or death and our unhealthy adore for a good news blizzard we at One Stop Motors are proud to present SAAB WATCH 2011!

10/27/11 – Today, Reuters.com reported on the current position Saab has situated itself into. While that may be a personal opinion, it seems hard to refute that much of Saab’s recent hardships were brought on by themselves. As Reuters reported, the Saab administrator in-charge of it’s bankruptcy prevention asked the Swedish courts, who have been protecting Saab from it’s creditors for the past month, to end the administration process of their corporate restructuring. The reason given was that Saab had insufficient funds to keep the restructuring process running.

While on the outside it may look as if Saab simply saw the wrong side of a fate, those who are familiar with the events of last week, will know it is the opposite. Late Sunday, Saab killed it’s deal with Chinese investors Zhejiang Youngman Lotus Automobile Co. and Pang Da Automobile Trade Co. that had been in place since June. What would have gotten Saab $340 million in loans and funding, was dropped by Swedish Automobile (the parent company of Saab) based on their unwillingness to hand over controlling interest of the doomed car manufacturer. Instead, they’ve elected to look for investments from other parties. With one day left before Swedish courts can put an end to Saab’s bankruptcy protection, it seems unlikely that the courts will side in the company’s favor (though they said they will hear the company out until they make a decision). Saab has already missed the deadline to react to the administrator’s request. It’s this kind of carelessness and negligence that leads us to assume the courts will release an injured Saab out into the wild for it’s creditor preditors to pounce.

The question become, does Saab deserve to be rescued? To avoid potentially losing the Saab name all together, they cut ties to the fastest and potentially only significant financial pipeline they had. Yes, they have issued $10 million worth of stock to North Street Capital LP and accepted an additional $60 million in loans from the U.S. based hedge fund managment firm last week. This must have boost their confidence quite a bit, as a few days later, they denied the Chinese investment deal. Suddenly, however, they’ve had to scramble to find some breathing room before their protection gives out. Even though the Chinese investors continue to claim that the deal between them and Saab is still valid and they plan to come through with the capital, it is uncertain how involved Saab is willing to be with this. Trading in immediate debt relief to save a name brand seems foolhardy on Saab’s part. Especially when you consider that the move alone could cripple their recovery entirely. What is really worst then? Losing a name or losing everything (including over 3,000 jobs)? To Saab, at least, the name is more important. Perhaps they have a few cards still left face down.

We will continue our coverage of SAAB WATCH 2011 as the news breaks. Check in with us regularly to learn the latest developments in the Saab story. As always, we encourage you to visit us at OneStopMotors.com; you’re one stop for buying and selling used vehicles online. You can also follow us on Twitter and Facebook.

Tyler Baker; OSM Writer

( Source : Reuters.com )

One Stop Motors 1 pt 2—How to Haggle When Purchasing a Used Vehicle

Again, the economy is driving the prices of everything we buy. Right now, with the automotive industry, the inventory is high for auto dealerships and that makes sales difficult for those trying to sell there automotives privately, as well.

On the other hand, times may be just as tough for you as a purchaser. Why should you pay more than the market demand? So to make sure you don’t come down with buyer’s remorse for realizing that you could have saved on that new vehicle, here are a few pointers on how to haggle for a better price.

For starters, know your limit:
Have three prices in mind before meeting the seller
The price you’d like
A fair price
The most you’re willing to pay

Do your homework:
Research your vehicle in trade magazines
If you’re not confident, bring a friend
Remain non confrontational
Remain as congenial as possible
If the seller is too difficult, just walk away
Reassure them you are not trying to take advantage and you can pay right away
Don’t allow them to guilt you for haggling; you could end up paying more than necessary

Follow your instincts:
If something feels wrong, it probably is
If the seller does not seem honest, he probably isn’t
Don’t be afraid to make a counter offer if you are not satisfied with the initial offer
Push the Deal

Ignore “That’s the best price I can do.” Ask them again and let them know you are still searching other places. And ask the a third time and let them know you can right away. The third time usually seals the deal.

DO:
Be confident and well informed
Be persistent
Stay relaxed
Be friendly
Be straightforward and business like
Stay in control


DON’T:
Get emotional
Argue
Offer full asking price
Complain about the asking price
Lose your cool
Lose control with weak haggle statements

Remember that OneStopMotors.com can help you with you used car purchase. Look us up on line to shop from thousands of used car inventoried on line. We can also help you with financing, insurance, warranties and shipping. Let us do the work so you don’t have to.