Saab Saved... For Now

A few weeks ago I reported that a mystery company named National Electric Vehicle Sweden AB was in negotiations to purchase Saab and save it from bankruptcy. It was recently announced that the company has purchased the company for an undisclosed amount.

National Modern Energy Holdings and Sun Investment LLC. joined together for the sole purpose of buying Saab for its electric technology. The purchase assumes the $1.9 billion in Saab debt but both sides agreed not to disclose the purchase price. Interestingly the sale did not include Saab Automotive Parts AB (which the Swedish National Debt Office is taking over), the rights to the 9-5 or 9-4x, or the rights to the Saab name in general (owned by Scania and the Swedish Aerospace And Defense group or Saab AB). The only naming right purchased seems to be "9-3".

Additionally, Automotive News Europe reports a new electric car will be out in 2014 based on the next 9-3. NEVS also announced the hiring of 200 engineers to work on the electric car program. They are also looking to partner with Mahindra and Mahindra (once in the running for Saab's assets) to develop a gas-powered 9-3 as well as other future models.

Considering that Saab has not produced a car since 2011 and they have not been profitable for nearly 20 years, there is not much of a lower point for the company to hit. I wish them the best.