SaabsUnited.com

This came in from Saab Sweden overnight.
“Composition” – as I understand it – is the part of the proceeding where Saab formally lay out who’s going to get what and when (in financial terms) as part of their reconstruction. It’s probably more complex than that, but you get the drift.
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Hi Steven,
FYI Saab has just submitted an application to start Composition proceedings.
The overriding message is that: Everything is going to plan.
Application to start Composition proceedings (made 20 May 2009)

• A formal application for Vänersborg District Court to start Composition proceedings took place on the afternoon of 20 May 2009
• We publicly laid out our intention to do this on 6 Apr (at the creditors meeting)
• Aim is to reduce un-prioritized debt relating to those remaining creditor’s claims made prior to Saab filing for reorganization
• We have been in communication with those creditors affected – they were written to about the Composition proposal on 11 May
• VERY ENCOURAGING – MAJORITY OF CREDITORS HAVE APPROVED THE COMPOSITION PROPOSAL
• Out of 600 creditors, even at this early stage, the majority have already approved the Composition proposal
• It is likely that the Composition hearing will be in mid Jun

I am sure there will be reports in the Swedish media – the one inaccuracy that has already been reported is that the Govt Tax Authority has rejected the proposal: THIS IS NOT THE CASE. They have neither approved nor rejected the proposal – but I understand that they have asked for more details.
GM our biggest creditor has approved the proposal.

The original documents filed by Saab in the court at Vanersborg are available, in Swedish and in PDF format, from this link.
Once again, ctm was able to help out with a translation of the main dot points to come from the document:
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• Asking the court for another 3 months.
• This is the biggest reconstruction that’s taken place in Sweden.
• The work so far has been according to the plan: concentrate all manufacturing to Trollhättan, make Saab independent from GM, find a new owner, and to secure financing of 1 Billion US Dollars for the business plan by loans from EIB and support from Swedish state and GM.
• Part of Saab will be security for the loans. Debt holders will be asked to write down debts.
• Intense negotiations with Magna-Steyr to move production of 9-3 Cab to Trollhättan. Plans to produce the new 9-5 in Trollhättan moves along.
• Sales process is working according to the plan. 27 initial interested parties, 20 sign agreement on confidentiality, about 10 visited Saab. Over all, positive reactions. 3 have chosen to continue negotiations to buy Saab. Negotiations to continue through May to select the final candidate.
• This positive process has led to intensified negotiations with EIB and the Swedish Government with several meetings (will be finalized in June).
• Liquidity is good. Saab has taken 45 Million US Dollars of the 150 Millions made available by GM for the reconstruction. It could be deems necessary to get more from that credit, but the money will be enough for the reconstruction period.

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I love that.
Even in reconstruction mode, Saab are being efficient and looking to use as little of the funds allocated to them as possible.
Bless ‘em!

I bought you some snippets of this interview via Automotive News earlier today.
An interview has also been published in Trollhattan’s local newspaper, TTELA, and ctm’s been kind enough to translate it and send me a copy.
Mats Fägerhag is Saab’s executive director of vehicle systems (per Automotive News), though TTELA refer to him as Technical Director. His official title is of little matter here on this blog. What matters is what he’s got to say – and it all sounds good.
Incidentally, Auto Motor and Sport are also running an interview with Mats Fägerhag today, and my old mate Par Brandt sent me an email inviting me to use the picture they have accompanying the story. Sent with a smilie, he intimated that the car in the background is one that we’re all dying to see.
So I’ve used it below. If I’m reading Par’s hints properly, it would seem that this is your first glance at an un-clad 2010 Saab 9-5. Cheeky, isn’t he?
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We get a kick start
Must Saab be included in a large group to survive?
- “Not at all,” says Technical Director Mats Fägerhag. Necessary co-operation can just as easily be done through partnerships.”
- “There is a completely different transparency for such solutions today.”
During the years the automotive industry have taught us large scale operations with shared components, development and production. Precisely for this reason many believe that Fiat would be the optimal ownership solution for Saab. But that is an outdated approach, says Saab’s CTO Mats Fägerhag to TTELA. Large corporations are not the only way to cut costs. An option as good as anyone is to be an independent company with various partnerships.
- “Everyone wants to find the volume by sharing investments with others. There is an openness to these things today that did not exist five years ago,” he says, and continues:
- “Previously no one who wanted to share their components, such as door locks, with someone else. Today, it would be perfectly possible for Saab and Volvo to cooperate, for example, on a new cab roof.”
On the other hand, it’s the buyers market at the moment. And things change over time.

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