You are browsing the archive for 2009 February.

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by Swade

Some light relief from the Saab 9000

February 19, 2009 in Archive

There’s a lot of stress right now, so I thought I’d take a moment to bring you some aesthetic pleasure courtesy of someone named kroc0017 on Flickr.
You know I love the Saab button dash. This is where it all began – the Saab 9000.
It holds a special place in my heart, too, because my first Saab experience was a ride in a Saab 9000 at rather high speed on the way into Philip Island.
Looks excellent, huh?
Saab9000dash.jpg
And have you ever seen a photo and thought to yourself “Geez, I wish I’d taken that!”
This is one of those.
Saab9000tacho.jpg
Congratulations kroc0017. Awesome stuff.

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by Swade

Saab reorganisation ‘imminent’

February 19, 2009 in News

News outlets in Sweden are reporting that Saab filing for formal reoganisation is ‘imminent’.
Saab have convened an extraordinary board meeting, due to start as I’m typing this, where the decision will be made.
From The Local:

The board of Swedish automaker Saab is expected to make a decision about whether or not to seek bankruptcy protection during a special meeting of the company’s board on Thursday…..
…..The news comes from anonymous sources within Saab, according to several Swedish media outlets.

The secret sources might be talking, but no-one else is:

…..Saab Automobile spokesperson Eric Geers declined to confirm the reports.
“We can’t comment on that,” he told the TT news agency.
Speaking to Sveriges Radio (SR), Saab chief executive also Jan-Aake Jonsson refused to confirm the information.
“I don’t want to speculate on the different alternatives that Saab has when it comes to running our operations going forward,” he told SR.

The news should be forthcoming shortly.
——
In other news, Aftonbladet have a story stating that the Swedish government offered to back loans to the European Investment Bank late in 2008, but the offer was knocked back by GM.
From a translation of the article:
General Motors had the chance to save Saab.
Aftonbladet can today reveal that Maud Olofsson had taken all the contacts and prepared the European Investment Bank for a fast deal in early December. But GM refused the offer.
- GM has absolutely not been interested in saving Saab, says a well-informed source.
Four years ago, General Motors chief Fritz Henderson said about Saab:
- This is an extremely important brand.
But Aftonbladet can reveal how GM ignored Saab Sweden – and the Swedish government.
In late autumn, the Maud Olofsson and her State Secretary Jöran Hägglund discussions with GM’s European chief Carl-Peter Forster. Maud Olofsson offered GM governmental loan guarantees if they turned to the European Investment Bank (EIB).
But GM chief interest was cool.
- It takes so long to get loans from the EIB, was his reply.
But Olofsson was not satisfied with that so in early December, she contacted the EIB and asked if thay could fast-acting GM’s potential application. The answer was positive.
But when contacted GM to talk about it there was a lot of excuses.
- There was no interest and they were delaying and slowing down the situation, “says a source to Aftonbladet.
Around christmas the Swedish government contacted external consultants to review the figures for GM and Saab of Sweden.
- They just jiggle the head. There was no reality in the figures, says a source.
Council from the consultants was crystal clear:
- Release the Saab.
The sources Reuters spoke to is critical to GM’s actions.
- GM has played a huge ugly games against the Swedish government, says a source.
Another:
- GM was not at all interested in saving Saab. And they have completely bypassing Saab Sweden.
Olofsson’s press secretary Frank Nilsson can confirm that in December they had worked hard to finish al preparations for GM with the EIB.
- We have been in contact with the Bank both to speed up any application by GM and that there is room to get loans, “says Nilsson.
—-
Thanks Ken H and Johan!
—-
Other tidbits from today:
Saab have released a report stating that if they go under, it is likely to cost the Swedish government in the order of 4.5Billion SEK per year.
Dagens Industri estimate that whilst Saab employ around 4,500 people, there are up to 30,000 that would affected by the loss of Saab.
Many of those jobs are associated with Saab suppliers. Many of these suppliers would possibly have to apply for corporate reorganisation themselves in order to survive Saab’s restructuring.

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by Swade

A brief look at Sweden’s version of business reorganisation

February 19, 2009 in Saabology

This was posted in comments by CJ and I thought I’d elevate it to be a post for the benefit of those who might be unfamiliar with the process.
The impression that I got from my brief research is that the Swedish business reorganisation act isn’t implemented so much becuase it’s an act that favours the creditors of a business and involves a shipload of supervision that can get in the way of normal operations.
The US version (chapter 11) has an incentive to declare voluntarily and early as it gives the business more control over its destiny.
That said, CJ’s a local so he’s likely to be much more familiar with such things. The scenario he paints seems quite reasonable so I thought it a good idea to share it here to give an idea of what might be on the horizon if Saab were to go that way.
Thanks CJ!
——
A reorganization is fairly similar to chapter 11. I.e. no more payments are being made to suppliers (and any new contracts / purchases would have better right). A person is assigned to find out if there is a future for the company or parts of it, but it would give some more time to find a possible purchaser.
The Swedish government have effectively said that they where willing to guarantee loans for GM if they made a committment to saab, but GM refused. Instead they wanted the loan guarantee, which would effectively make the swedish government owner after the money was out. Apparently if GM would be the one closing saab they would have closing costs of appr. 8 billion SEK (appr $900M USD). If GM would get the government to take over the company they would be able to get out of this.
The [news] I heard today was that with the current rate saab was burning 500MSEK / month, so then the 5billion loan would be gone by the end of the year. Realistically, the market will stay soft for some time to come so more money is needed, in addition to a stable owner that help return confidence to the market.
The fact that GM will incur large costs for closing the brand (retailers, close the factory not to mention its own reputation and that it wants to be able to sell cars in Sweden in the future) may be what saves Saab.
Its rather clear that GM has been trying to play hardball, and most other governments have agreed to it. This time it did not work, but to get out of the closing costs obligations they may be willing to give a buyer (Chinese i would imagine is the best to hope for as they get a brand, a rather efficient factory, 2 models ready in the pipeline, some development resources and a North American and European sales force).
Strangely enough, it may end up being the Swedish government by putting pressure on GM that gives the new buyer a low entry costs, being better for the brand.

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by Swade

2009 Saab 9-3 Aero with XWD – Auto123 review

February 19, 2009 in Archive

Auto123 have published a pretty good, slightly frustrating, somewhat baffling and downright staggering review of the 2009 Saab 9-3 Aero. Most of all, it’s a good review, though.
It’s looking good in red, though I must admit I’m wondering what a darker red would look like on this car. Anyway…..
2009-Saab-9-3-Aero-XWD.jpg
The review is quite good in that the reviewer is very enthusiastic about the car. He covers pretty much all areas of the car and has a lot of good things to say.

Let’s make it clear: a Saab is not your Average Joe’s car. A bit like Ferraris, each model from this Scandinavian automaker has unique little quirks which require some getting used to. Brand faithful have no problem with that, while everybody else fumes…..
….Up until now, I would have never imagined that a Saab interior could be as quiet as a BMW 335i’s. Furthermore, when I first sat behind the wheel of the 2009 9-3 Aero XWD, I expected to feel overwhelming torque steer, especially when the turbo kicks in. My fears were quickly dispelled.

This sort of positivity permeates the review, and that’s the slightly frustrating part of things.
Almost all recent reviews of the Saab 9-3 have been pretty positive. The main complaint is pricing, but everyone appreciates the driving characteristics of the car, especially the XWD system.
What’s frustrating about that is Saab really do have a good car on their hands right at the time when their existence is so tenuous. GM haven’t given Saab adequate resources to market it and now all this talk of a Saab sale is going to drown out any positives that the cars themselves might provide.
The somewhat baffling part is the reviewer’s awarding of only 3.5 stars for safety. A five star rating from the actual safety agencies and multiple Safety Pick awards from the IIHS aren’t good enough for ya?
The staggering part is pretty well summed up at the end of the review:

During my road test, I came across another Saab 9-3 Aero owner who, much to my surprise, claimed that he was disappointed. According to him, the car has one major shortcoming that ruins the entire experience. It’s a “design flaw” that reportedly makes you forget about the incredible handling, clever ergonomics, orthopedic front seats and great build quality: the trunk!
The man argued that four golf bags can’t fit in the back of the car.

As the author has mentioned, the fact that a once-a-week hobby could override a seven-days-a-week enjoyment is just stupid.
Don’t his friends have vehicles, too? Can’t they carry their own bags? Did you size up the trunk before you bought?
Sometimes I think our expectations as lazy fat-arsed gimme-gimme-gimme consumers are just way out of whack.

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by Swade

Thursday Snippets

February 19, 2009 in Archive

As was noted in comments by a few people, Saab Sweden have apparently scheduled a board meeting for Thursday.

The topic up for discussion, according to Swedish news services, is business reorganisation. I’ve spent a few hours this morning trying to get my head around what this means but it’s a complex area. There’s no single simple resource like the US Chapter 11 proceedings to refer to.

Let me tell you this much – there’s a lot of things we’re not being told about this scenario. Saab have prepared and presented a plan for reorganisation to the Swedish government. This plan involved the introduction of several new Saabs and the relocation of production for the 9-5 and 9-3 convertible to Sweden.

Those new models should boost sales and the relocation of production should maximise efficiency and utilisation of Swedish facilities. I would have thought that in combination with all the work that’s been done at Trollhattan to make it competitive, that such a plan should give a responsible government some comfort in being able to provide loan guarantees but the Swedes have come out and said that they won’t provide guarantees based on the plans submitted to them so far.

Why not?

I think both parties know far more than what they’re saying, which is fine for them. But the effect of a drawn out game of corporate chicken is a massive loss of confidence in Saab.

——

Carl-Peter-Forster has addressed GM’s recovery plan document in his Driving Conversations blog.

I’ve got to say, with him being the titular head of Saab Automobile, that I’m very disappointed that he didn’t address the Saab situation specifically.

Thanks WooDz!

——

How to spot an internet shyster:

There’s a website online now – I’m not going to link to it but it’s at savesaab.com – about saving Saab. It’s even taking donations!!

The donations will be used for:

  1. Promoting effective and efficient corporate management.
  2. As a voice in Congress to ensure Saab constituents’ voices are heard.
  3. Promoting Saab driving events around the country.
  4. Covering costs associated with the promotion of these objectives.

WARNING – this is an internet scam designed to tap into current ill-feeling and sympathy for Saab. Do NOT fall for it.

And if the person who started this is a regular here, shame on you. Please feel free to remove yourself from the community here.

——

Whilst the world was watching Saab from a corporate persepctive, I neglected to mention that World Car Fans posted some more 2010 Saab 9-5 spyshots.
If there was anything ground-breakingly new about these, they’d have got their own post.

Here’s a quickie, though. What’s with the ‘ladder’ section at the bottom of this tail lamp?

2010-saab-9-5-lamp.jpg

——

SaabsUnited has been online for around 10 days now.
We had our 1000th comment yesterday. Now at over 1,200. Not bad at all.

——

Time for some better news?
Coming up…..

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by Swade

Some good thoughts on Saab

February 18, 2009 in Archive

The Swedish government have turned their backs on Saab for the moment, though I don’t believe the end-game has been played yet, not by any means.
Amongst all the doom and gloom in today’s reportage, there’s also a hopeful story in today’s Dagens Industri newspaper.
Mailr provided the link. I’ll provide the summary (it’s in Swedish)
——
General Motors does not want to carry Saab. Nor does the Swedish government, either. Who will keep Saab is highly uncertain. But that GM has let go does not mean the death knell for Saab. So says Matts Carlsson, an automotive analyst at the Gothenburg Management Institute, GMI.
“It is not certain. GM are creating a gap that other competitors are interested to play in. If a company has ambitions and resources, this could be an interesting time,” says Matts Carlsson.
He is convinced that Asian automakers could count on a purchase of Saab to get access to a brand in the premium segment.
And it may actually be a “cheap” deal compared with what it costs to build their own new brands, “says Carlsson.
“It is GM’s tactics to put Saab on their own feet to bring up the price tag. But it will nevertheless not be very high, perhaps around 5 billion SEK.”
Matts Carlsson indicate that several attempts to settle into the premium market has been slow, for example, Nissan’s Infiniti and Honda Acura.
“Are you going to build a premium brand? All ambitions from VW and Opel has not worked particularly well.”
But many argue that Saab is too integrated into GM?
“It is true, and, of course, there are problems and lots of intricate issues to resolve.”
“The company must first obtain a financial settlement in a few months, from either GM or from the state. Since the company needs to roll out new products and withdraw the production and development at Trollhättan.” [not sure if this means withdraw - SW]
In a transition phase envisages Matts Carlsson Saab borrows the engine and gearbox from GM. For the actual production in Sweden is attractive “he says.
“Saab has one of the world’s most efficient production facilities. When the European factories in the GM played off against each other, only Gliwice in Poland and Eisenach in Germany who was tougher.”
Matts Carlsson do not think the state should go in as the owner but as loan guarantor.
“It is true that the Saab lost money in 20 years. But if the government is afraid of our tax money, this is an exciting investment. The alternative is that the money goes straight into the lake.”
What happens if Saab is closed?
“Suppliers in Sweden would move and skills disappear. It would affect the University, Swedish research and, by extension, Volvo PV, AB Volvo and Scania.”

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by Swade

2010 Saab 9-5 on video

February 18, 2009 in Archive

Saab have let There is a 2010 Saab 9-5 video out on the web, published today on Autoweek.nl
This is the first chance you’ve had to see the car in motion.
Check it out
Saab9-5video.jpg
Thanks Riku!
——
I know Saab have done some filming themselves and I thought this was that video. Apparently it is not.
–

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by Swade

AMS cover the Swedish government’s response on Saab

February 18, 2009 in News

Auto Motor and Sport have a very good summary of the press conference just held by Swedish Deputy PM, Maud Olofsson.
What follows is a translation, tidied up by me:
——
Industry Minister Maud Olofsson and the government have said “no” to aid that would help Saab and their owner, General Motors. Thus the future looks very bleak for Saab, which can hardly expect so much from the economically beleaguered GM. Olofsson’s statement may well be the beginning of the end for Saab as car manufacturers.
At 11.05, the Industry Minister Maud Olofsson, the press conference which aimed to comment on General Motors future plan, which came on Tuesday night. Olofsson’s statement was a repetition of what she has previously said – the state does not want to become owners of an automobile company.
“To begin with, I would say that I am deeply disappointed in the GM, who do not themselves dare tell the truth, that they have taken their hand from Saab,” said Maud Olofsson. “GM has not performed its role as owners, and are not doing it now. Instead, they want to put the responsibility on the Swedish taxpayers.
“It will be a process now until the end of March. We do not know what will happen until the U.S. government responds. There is also considerable uncertainty about what will happen with Saab.
“My previous position remains firm: the Swedish state is not prepared to take car plants. In this situation, GM is a stubborn negotiator, there are so many jobs that are jeopardized. But GM has also decommissioning, such as the dealer. In the moment we take over ownership, we also agree settlement costs. We are not prepared to jeopardize the taxpayers’ money.”
“The taxpayers have not requested to take car plants’ continued Maud Olofsson. “History teaches us about [trans not working] crisis, which the state invested 100 billion in today’s money and did not got anything.”
“We need to face the truth. It is very, very difficult to see how GM would be able to take ownership of Saab. We close the door for the Swedish government. It is not our strategy to own car plants. By 2010 Saab may require 8-10 SEK, which we will go in with 5 billion. This is not a realistic option. If GM cannot make Saab profitable, how are we to develop profitability?
“Saab have many good cars. The skills are we trying to make something of. We have proposals for research grants. What can lead to new industries? The sooner we do it, the better. Expertise available to develop into other areas, outside the automotive industry . Windfarms, for example. We see a growing interest in plug-in hybrids, electric cars, and the like. Let us see what can go to do there. ”
Asked if there is any realistic future for Saab was Maud Olofsson doubts:
“The realistic way is reconstruction. But it is not the Government. I can not answer if Saab continues to exist. We provide tools for good business ideas.
Maud Olofsson was also critical of General Motors’ ability to meet customer demands for more fuel efficient cars. She visited the Motor Show in Detroit two years ago and not much has happened.
“GM has a good deal to prove,” said Maud Olofsson. “It amazed not directly over the new idea that GM supplies (??? – SW). They do not understand the need for environmentally friendly cars. That’s why they go around the world with their hand out to various governments and ask for money.”

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by Swade

Swedish government respond

February 18, 2009 in Archive

The Swedish government press conference is happening right now.
This is Maud olofsson and Joran Hagglund addressing a small-ish press corps.
AftonSS.jpg
We’ll await some of our Swedish friends sending in the news. I’ve got to learn to speak Swedish.
——
UPDATE:
The headline at TTELA is not good:
TTELASS.jpg
——
UPDATE II:
TTELA are running an updated post on the press conference, which sounds really bad so far. This is via Google translator so it’s not 100% accurate, but it’s close enough to be scary.
I am deeply disappointed in General Motors, begins Maud Olofsson. She believes that GM does not run Saab in a good way and that they now fit over the responsibility of the Swedish taxpayers.
State Jöran Hägglund presents figures on the automotive industry and General Motors.
We are not prepared to risk taxpayers’ money. It is not we play Monopoly, “said Maud Olofsson after Jöran Hägglunds review.
Olofsson refers to the plan presented to Government in July, with the support of research and development, among others.
The skills that exist within fordonskustret can lead to development in other areas, “she says and cites wind turbines as an example.
We will during the day to contact the municipality, unions, businesses and so on. We have Innovatum in Trollhättan, University West, our research.
Olofsson claims that the government should focus on helping the people at risk of becoming unemployed, and to develop new industries.
Should the government step in and take over a company that not even GM is prepared to invest in?, argues the Minister for Trade.
- The realistic alternative is a reorganization of the company, “said Maud Olofsson, in a matter of TTELA’s reporter.
What will happen to the Saab models that is in the pipeline?
It is not government’s job to create new models for Saab. Would we do it better than one of the world’s largest car manufacturer, who is responsible? said Minister for Trade.
With the news that you should invest in finding new jobs in the automotive industry or in other areas. Some package wanted Olofsson not promising.
The press conference concluded.
——
UPDATE 2
Lundin fills in the gaps that TTELA and Google missed:

Maud and the Swedish Gov will wait to see how the US gov handles the GM request in March.
The gov presents numbers on how current automotive industry is shrinking and nothing from GM and saab has shown why Saab should increase their sales rather than continue to decrease even if new models is being introduced.
The Swedish Gov don’t dare to invest in Saab when GM doesn’t want to take any further responsibility in Saab. They can’t even prove they exist in January 1 2010 which they said in their report.
Maud points out that she wants to take the competence and technology that exists in Saab into a new “technology centra” with Swedish Gov fundings that was presented late 2008.
The Swedish Gov. Will NOT with current plan give any warranty for a EIB loan.

——
Further comment from Lundin
Maud want focus Swedish engineering know-how into green technology industries rather than current Saab product line.
Somehow,she doesn’t grasp the connection to future Saab products and alternative fuels but i am not surpised.
Why are Jan-Åke unable to show a viable plan for Saab ? He said to me Saab didn’t made a net loss for 2008 when calucalting the operation done in Trollhättan Vs the sales of Saab cars.
Why can’t he show that report for a future buyer.
Why doesn’t GM “give away” Saab to any future buyer in order to secure money for parts and components for the current line up.
——-
Anyone for a Saab wind turbine in their front yard?
For someone who doesn’t want a stake in something and thereby tell them what to do, she’s sure full of suggestions.
Anyway, all is not lost YET, though I have a bad feeling about this now.

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by Swade

Time for Maud Olofsson to respond

February 18, 2009 in Archive

UPDATE below
——
GM have had their say.
It’s time for the Swedish government to respond, and Swedish Deputy Prime Minister Maud Olofsson will do just that at 11am Swedish time.
Apparently the government has copped some flak in the Swedish media this morning. They’ve taken a principled stand against taking an ownership stake in Saab, preferring to play chicken with GM whilst some other European governments extend solid support in contravention of some European Union rules.
GM have indicated that they’re going to cut and run. It’s time for the Swedish government to make a decision one way or another.
They can either support Saab, co-operate with GM and try to see Saab through to independence on January 1, 2010.
Or they can support Saab through a reorganisation process starting March 2009.
The final option is the disappearance of Saab from the automotive landscape, an option that I’m sure none of us want to see.
——
Dippen tells us that apparently Saab are due to have a board meeting tomorrow. Oh to be a fly on the wall there.
——
IMPORTANT – Any of you Swedes who can help us out with a summary of Ms Olofsson’s presentation, please feel free to email me at swade99-at-dodo.com.au
Cheers,
SW
——
UPDATE:
“talkingfuture” has linked up a Times Online article that spells out a few things quite neatly.

Saab, the Swedish carmaker owned by America’s General Motors (GM), could go bust within ten days without an immediate injection of state aid, the US company warned last night…..
…..However, GM said that Saab was losing so much money so quickly that, without government intervention to secure its future, the subsidiary could be forced to file for reorganisation by the end of this month.

And here’s why Maud Olofsson has been in the firing line for some….

“The Swedish state and taxpayers in Sweden will not own car factories,” Maud Olofsson, the industry minister, said. “Sometimes you get the impression that this is a small, small company but it is the world’s biggest automaker so we have a right to make demands.”

Demands are only worth making when the demandee has something to lose.

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by Swade

GM’s ‘recovery’ plan and how they’re going to sell Saab up the river

February 18, 2009 in News, Saabology

So now we know. The Plan is out there. You can download your own copy of it here.
The most important paragraph in the whole thing is the one I quoted in my coverage of the press conference:

Sweden/Saab–The Company has conducted a strategic review of its global Saab business and has offered it for sale. Given the urgency of stemming sizeable outflows associated with Saab operations, GM is requesting Swedish Government support prior to any sale. The Company has developed a specific proposal that would have the effect of capping GM’s financial support, with Saab’s operations effectively becoming an independent business entity effective January 1, 2010. While GM is hopeful that an agreement can be reached with the Swedish Government to support this direction, the Saab Automobile AB subsidiary could file for Reorganization as early as this month.

This probably fills in the gaps we’ve been seeing between GM’s opinion as to what’s been going on and the Swedish government’s opinion.
The government has been saying that GM is responsible for Saab and they want to see a plan that truly gives Saab a realistic chance of transition. As you can see from the paragraph above, GM’s plan is cut Saab loose by December 31st 2009 at the very latest.
……And If that’s not good enough for ya , Maud, they can file for reorganisation (bankruptcy) this month and become your problem right now.
Make no mistake – GM have strip mined Saab of their own technology (which Saab can licence back if they need to – thanks) and sold them down the river. Saab’s best hope now lies with convincing the Swedish government to throw them a paddle.
——
Saab have now applied to the European Investment Bank for a loan, which the Swedish government say they’ll guarantee as part of the package of loans they legislated earlier.
——
Maud Olofsson is holding a press conference tomorrow morning (Swedish time) where she’ll no doubt address the concerns for Saab as raised by GM’s plan.
This response will be pretty crucial.
The Swedish government have long held that they will not take an ownership stake in Saab but a reasonable chunk of their automotive industry is stake here, not to mention their export capability.
GM have cut and run. Good riddance to them, I say.
But the Swedes need to back their motoring industry and the company that has the design potential to be a proud Swedish player amongst it. This company is too good to euthanise.
——
Also rmember what Eric Geers had to say in my conversation with him earlier:
SU: So regardless of what GM say today, have you still got some room to move in terms of timing, etc?
EG: Yeah. The negotiations will continue. Exactly when they’ll end in terms of deadlines, etc, I can’t say. We just know that we need to plan an operation that can stand alone and then we will try to move on with things. We have to work on how to finance the operation, and that’s the road ahead for Saab.
It’s also important to remember that people need to back Saab up here. It’s OK for some to write a whole doomsday scenario, saying that it’s over-and-out for Saab, but if it’s over-and-out for Saab then it’s the same for a lot of people, and for an important part of Sweden’s industry and identity. It’s not just Saab, there will be a lot of people effected.
——
It needs to be sooner rather than later. Much sooner. But there’s still time.

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by Swade

GM bailout news – press conference

February 18, 2009 in Archive

UPDATE VII: Rick Wagoner just signed the death certificate – asked by Mark Phelan of the Detroit Free Press whether there was a third option for Saab (other than sale or closing) and he said he can’t envision a scenario where GM would continue support (words to that effect).
Effectively: someone buys Saab or GM drop them. According to the plan, that could happen this month.
UPDATE VI: It’s quite clear from the The Plan that GM plan to divest themselves of Saab, sooner rather than later.
In short, they are hanging Saab out to dry. Their capping of financial support for the reorganisation of Saab looks a lot like forcing Saab into the reluctant hands of the Swedish government.
Every reference to Saab in The Plan is a reference to them being gone. There’s no language that indicates that GM will support Saab in a reorganisation effort.
——
From the Plan:

Sweden/Saab–The Company has conducted a strategic review of its global Saab business and has offered it for sale. Given the urgency of stemming sizeable outflows associated with Saab operations, GM is requesting Swedish Government support prior to any sale. The Company has developed a specific proposal that would have the effect of capping GM’s financial support, with Saab’s operations effectively becoming an independent business entity effective January 1, 2010. While GM is hopeful that an agreement can be reached with the Swedish Government to support this direction, the Saab Automobile AB subsidiary could file for Reorganization as early as this month.

Saturn, HUMMER and Saab have generated an average annual EBIT loss of $1.1 billion

UPDATE V – Am waiting to ask a question. Fingers crossed. Am downloading plan right now.
——
UPDATE IV – They have asked for support from several other governments, including Sweden. If Maud was in the audience, I think she would have thrown a shoe at him!!
——
UPDATE III – They have offered Saab for sale and capped the finance they can offer. If the issue can’t be settled then Saab would likely have file for reorganisation.
——
UPDATE II – It’s a “bold” plan!!
Wow.
——
UPDATE – they’re running a few minutes late, apparently. I’m on the conference call.
——
General Motors have scheduled a press conference for 6.30pm EST (in the US) which is just under two hours from now.
If the bandwidth gods are kind to us all, you should be able to watch it here.
——
For those of you who speak Swedish, there is an interview with Sweden’s minister in charge of saying negative things about Saab, Maud Olofsson.
I don’t speak Swedish but I heard at least one “bolaget” in there, a “December”, a lot of “Saab” and “Gee-Emm” reference, plenty of head shaking and at least one speak-to-the-hand.
There’s footage from Trollhattan, too. I’d love to live there. Seriously.
UPDATE:
A quick summary from ctm:

What she says is that the government has offered GM all the available loans and guarantees since December, but that GM has refused. Now, she says, Saab contacted the government “this evening” and told them they will themselves hand in a loan application to EIB. It’s really weird. And she says she has no idea what GMs plan will contain when it’s presented. And she claims that GM is still owner of Saab and they are obviously responsible. If Saab is cut loose, then Saab will be treated as any one and offered guarantees and loans.

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by Swade

Should we get ready for a GM bankruptcy?

February 18, 2009 in Archive

If this story from Automotive News is correct, then GM folks in the US and Saab in Sweden ought to brace for an organised GM bankruptcy proceeding.
I can’t see them needing $16billion by March and surviving the March 31 deadline for viability.
There’s a little bit about Saab later on….
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DETROIT — GM asked the federal government today for an additional $16.6 billion in federal aid to help it survive. Without the new funding, the automaker could run out of money sometime in March.
Under the plan submitted to the Treasury Department, GM loans and lines of credit would total $30 billion.
GM would also cut 47,000 jobs globally by year end and close five U.S. plants by 2012. It raised the possibility of killing the Saturn brand when production of its current models ends in 2012.
GM will receive the last installment of a previously approved $13.4 billion loan today, but is requesting another $4.6 billion to meet its Dec. 2 request of $18 billion. It then will ask for $4.5 billion to help it repay a revolving line of credit coming due in the fall of 2011.
GM also is asking for a $7.5 billion revolving line of credit to help it if auto sales worsen later this year or next year. GM plans to start repaying the loans in 2012.
The proposals are contained in a restructuring plan made public by GM today. Both GM and Chrysler LLC were required to deliver plans to the Treasury Department today. Chrysler is asking for an additional $2 billion in loans.

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by Swade

EnG Snippets – thankfully, they are bailout-free!

February 17, 2009 in Archive

Taking a break from the tension and negotiations that surround GM’s future with Saab or Saab’s future with GM, which ever way you view it, let’s talk about the cars for a few minutes, shall we?
Inside:
- More safety accolades for Saab’s 9-3 line-up.
- At least one Saab dealership in the US sees a recent rise in sales.
- A couple of great Saab pics from Flickr.

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by Swade

You make the news….

February 17, 2009 in Archive

It’s another big day for General Motors and if anything’s going to happen, then it’ll happen while I’m asleep.
Once again, that means that you’re going to have to keep yourselves informed. Comments are open. If there’s any groundbreaking news then feel free to post it there.
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I recommend only one link per comment to make sure it doesn’t get help up for moderation.
Also, if you enter a comment and it doesn’t appear right away, try refreshing your browser before writing your comment a second time.
Over to you….
Intelligent.jpg

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