Youngman plans new models for Saab
Published August 9, 2011
Although Saab is at a critical point between life and death, Youngman is still optimistic about its future and has put forward a 2012+ product plan for the ailing Swedish company.
Huang Zhiqiang, vice president of Zhejiang Youngman Passenger Car Group, said that the first thing Youngman will do after completing the Saab acquisition is to expand SaabÃ¢s product lineup to the higher and lower ends, and will launch new products such as the 91, 96X and 97. These new products will be made by their planned Swedish joint venture which will focus solely on R&D of new models.
Huang believes Saab has advanced technologies and strong R&D ability. It has an R&D center with more than 1,000 staff. Saab has a huge potential, but its problem is lack of funds.
Youngman and Pangda revealed that the acquisition plan has already been submitted to ChinaÃ¢s National Development and Reform Commission. But they are still drafting the concerned business plan and feasibility report.
Youngman plans three steps for SaabÃ¢s future development. First, Saab will resume production in a short period, which could be realized once the Chinese investment is in place. Second, Saab is expected to break even and sell more than 80,000 vehicles annually in the second year after it resumes production, since it has such a strong partner as Pangda. Thirdly, Saab will gradually return to a profitable situation.
However, SaabÃ¢s road to production resumption is not going as smoothly as planned. Saab has postponed its production resumption schedule from August 9th to August 29th due to lack of funds. If Saab fails to find an investor to pay the employees in two weeks, it will be forced into liquidation, and its partnership deals with Youngman and Pangda will be voided completely.