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by Swade

A letter to GM Management from Saab Employees

November 28, 2009 in News

I received the following via email. The source is genuine. I have not altered it other than the sections in parenthesis.

——

Letter to GM’s management

There are many Saab Employees who want to do what they can to influence the emerging situation in which it finds itself in. Today will be a letter sent to GM’s management from employees who want to channel their energy and demonstrate their commitment and their willingness to save Saab. Below is a translation of the message:

[the following section was originally written in English]

To our owners, General Motors

We at Saab have lived with our brand and our cars for more than 60 years. It is a brand that accommodates great passion. Ever since the beginning in 1947, when engineers from the aircraft industry were lying on the floor outlining the body lines of the first prototype, we have been bearing the stamp of new thinking, desire for continuous improvement, willpower and commitment.

We call that “the Saab Spirit”, and during the last year it has been more evident than ever. We have not given up. In times of extreme uncertainty we have delivered and created new prerequisites for our company, and we have built a new vision where to bring our brand and our products. We believe in our future. We know we have the ability.

Trust us. Don’t count Saab out. Allow us to bring our roots into the future. It is not only important to us, but also to our 1.5 million customers around the world and all of those people passionate about our cars and our brand.

[the following section has been electronically translated from Swedish prior to being sent to me]

There are more than a trace

Now it has gone a few days ago Koenigsegg Group announced that they withdraw from Saab purchase. The first disappointment and shock has subsided and now work hard to find new solutions. Time is limited, but it is true that a number of interested parties have made contact.

“I want all employees to feel that we are doing our utmost to row ashore with this. We are very aware that time is limited. Over the weekend, we will continue to work intensively to create the best conditions. We expect clearance from GM next week, “says Saab’s CEO Jan Ake Jonsson.

This was also something he brokered the Future Forum, in Trollhattan last night, when he spoke to about 300 people from industry in Trollhättan and the surrounding area.
During the week, a number of Saab Managers pooled their organizations, to provide a progress report and comment on the situation.

EIB Eva Srejber clarifies the site realtid.se the EIB loan is targeted to Saab and not to the Koenigsegg Group. Therefore, freezing is not included because of the defection. The article on realtid.se says Eva Srejber: “The ownership change is not unusual for us, when we make such an analysis of the new owners”, and believes that the bank will do a new analysis of the future owners when the picture becomes clearer.

Saab Enthusiasts around the world are now showing their support for Saab. Site www.rescue-saab.com has 17,066 supporters signed up and now calls on all those who figured to send a picture of themselves to make a giant photo mosaic to show GM how many people are behind Saab.

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by Swade

Saab 9-5 European tour – Austria done, Greek leg cancelled

November 27, 2009 in Saabology

The Saab 9-5 European tour has taken a turn for the worst following the breakdown in the deal to sell Saab to Koenigsegg.
The tour finished its run in Austria recently and was due to start in Greece on December 2, but I noted a comment from “GR” stating the following:

I’m sad to say that Dec. 2nd, 9.5 presentation in Athens Greece was canceled. Despite receiving our artworked invitations and drooling about the glamorous outdoor hosting location, we got phone & email cancellation announcements. NG9.5 is for a few days available for the Greek eyes and hands in the official importer/dealer’s showrooms.

I hope the Greeks who are interested in seeing the car can get along and catch a glimpse as it really is worth seeing in person.
I believe Italy was due after Greece. I’m unsure as to whether that tour will proceed.
——
Some pics from the Austrian leg of the trip.
normal_ATPremiere-95-mq03.jpg
normal_ATPremiere-95-mq30.jpg

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by Swade

Out front of the Saab museum – part II

November 27, 2009 in Saabology

In part 1 of this three-part series, I took you for a brief ride in an original Saab 92 from the Saab Museum.

Today’s part 2 takes a look at another Saab classic that we were fortunate enough to drive on the day. It was pretty special for me, too, as it’s my favourite Saab of all time – the Saab 99 Turbo.

IMG_2144.jpg

I hadn’t driven one of these for a while but it was just as I remembered it. Supremely comfortable, great driving position, visibility and of course – the turbo rush. The steering was h-e-a-v-y as usual. The other cars that I was fortunate enough to drive that day were both two-strokers so they had a light engine up front and could steer pretty easily. The 99T, of course, has the big two-litre turbo and it really is quite a heavy car.

IMG_2147.jpg

Reasons I love the Saab 99 Turbo:

First of all, it’s an absolute blast to drive. Like the 900 Turbo that followed it, the car just seems to go right where you point it. It’s not super sporty but there’s a great raw feeling to this car, which brings me to my second reason…..

The 99T holds a special place in Saab’s history (and automotive history, really). It was their first foray into turbocharging, a form of power delivery that would go on to define a large part of Saab’s existence. It was also the first successful mass production turbocharged car that a regular worker could aspire to. BMW had their 2002 Turbo, which wasn’t reliable enough to keep going and the Porsche 930 was really quite an elite vehicle. Saab brought turbo to the masses.

It also has the coolest badge ever…..

IMG_2148.jpg

The 99 interiors were pretty funky and the turbo version was about as funky as it could get. This pretty much sums up 1970s Saabs for me. Who else could get away with an interior that looks like it was crafted after a wild weekend in the seedier areas of Amsterdam?

IMG_2149.jpg

And finally, the shape.

900 owners will probably disagree, but there’s something that’s just right about that slightly shorter nose. It’s a little more aggressive. To me, at least.

IMG_2152.jpg

It really was an incredible privilege to drive this pristine 99T and once again, I have to thank Peter Bäckström at the Saab Museum for the opportunity.

As brilliant as this drive was, it wasn’t my favourite drive of the day. That one’s coming up next in this series.

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by Swade

DI.se not doing themselves favours in the credibility stakes

November 27, 2009 in Saabology

Generally speaking, I find Dagens Industry to be OK when it comes to Saab stories. They sensationalise a bit every now and then, but they’ve got good resources and they use them to get a lot of information.
I read through a couple of stories there this morning, though, and I’ve got to express some concern over their willingness to beat a dead horse for the sake of getting a headline.
The first story I turned to today was at the top of their website. It was a critical piece on Christian von Koenigsegg, with DI.se’s expert saying he just didn’t believe CvK’s explanation about why the deal failed (i.e. they ran out of time and the risks became unacceptable).
Now, I can understand his reasoning here, because I’ve said myself that there must have been more to it.
But then they drag up “other instances where Christian von Koenigsegg has had problems with credibility” (via Googletrans). Their indictment is this – Koenigsegg set a speed record of 388 km/h that was not verified by FIA.
Big deal!!
Their critique of the Saab affair is OK with me, but if you’re going to put a guy up on your front page and discredit him, then please have something more in your armory than an unacknowledged speed record.
Puh-lease.
——
The other bit of inaccurate writing today on DI.se is their contention that Saab will likely be declared bankrupt at GM’s instruction next week.
Again, a googletrans:

Saab owner General Motors will not drive car builder further on their own, said sources in Dagens Industri. It increases the risk that Saab is declared bankrupt in the next week.

Saab might be closed on GM’s decision next week, but it won’t be because of bankruptcy. It’s my understanding the Saab has sufficient cash to keep operating for some time yet. Not a long time, but they can keep producing.
And lest they forget that Saab just went through a court process to reconstruct their business and their debt structure.
My Googletrans might be inaccurate in translating to ‘bankruptcy’, but if not then I just understand why they’ve used this terminology.

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by Swade

JAJ appeals to Swedish government

November 27, 2009 in News

As mentioned briefly last night, Saab’s head man in Sweden, Jan-Ake Jonsson, appeared at a presentation in Trollhattan yesterday, which somewhat ironically was all about the future. It was booked some time ago when the future looked quite a bit different to how it does today.
During the presentation, JAJ addressed the issue of aid that was offered to the Swedish automotive industry early in the year. None of that proposed aid has been used by Saab or Volvo, primarily because the conditions for its use were too difficult to manage.
A googletrans from DI.se

The conditions are too tough, simply. A loan to be repaid after six months.
Saab Head would like to see the government under the conditions the EU will replace rescue loans to a reorganization loan, another form of loans with different terms.
“Then GM would listen,” said Jonsson.
He sees the passing of time for a new business which is extremely important, as vital for Saab. And he is hoping for a straight answer from GM’s board next Tuesday.
“Time is essential. Next week I’m hoping for a strategic decision. How do we proceed? It is important to make clear statements.”

What I believe Jan-Ake is saying there is that if Saab have a viable option available to them that will enable them to separate from General Motors, then the government need to act quickly in assessing this and offering their support for the option in a tangible way so that that option can be presented to General Motors in the right light before next Tuesday’s GM Board meeting.
The Swedish media has concentrated on calling this a complaint on JAJ’s part, but the important part is the forward-looking part. JAJ’s appealing for them to listen and act so that GM can get a clear message from Sweden prior to Tuesday.
Here’s hoping that the government is listening and maybe sending a few officials away to meet with the associated parties in the next few days. Time is of the essence.

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by Swade

Saab 9-5 SportCombi caught in testing

November 27, 2009 in Saabology

It’s got to see some normality happening in the eye of the storm.
Not only will the new Saab 9-5 still be shown at the New England Auto Show next week, but the big-back version of the car is out and about in testing, as spied by Hans Lehmann and posted on Spyshots.nl
Saab-9-5-Estate-testing.JPG
There are three more shots at that link, so go and check them out. It’s an interesting choice of camo locations, too, I have to say.
Of course, I feel compelled to see their spyshot and then raise them an official CGI:
2010Saab9-5wagonOfficialSU
–

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by Swade

EnG Snippets with a heavy dose of igbok

November 27, 2009 in Editorial, News, Troll Stuff

igbok slant.jpg
igbok.
I don’t know if you have a proliferation of these bumper stickers where you live, but where I am there is a fair number of them. Finally, while driving to our Thanksgiving destination, I found the time to Google it to find out what in the heck this means. (My wife was driving at the time, so I wasn’t driving and Googling.)
igbok is an anagram for “It’s gonna be OK.” Embracing this sentiment now is a bit difficult, but I encourage you to do so. Let’s do it for nothing else but to keep our heads straight and focused on the things that we can do to bring Saab into the future. Let’s take this opportunity to solidify the brand.
You may order your own copy of the sticker for free if you would like here.
————–
The Truth About Cars has a nice summary article worth reading.
It quotes Bård Eker saying that the failed attempt to buy Saab “was like a planecrash, you know? When 58 things go wrong simultaneously.”
Fair enough.
————–
What a roller coaster this week has been for me personally with the whole Saab saga.
I visited my local Saab dealer (Crest Cadillac/Hummer/Saab in Nashville, Tennessee) to get a new key for my 1999 Saab 9-5. I can’t tell you how annoyed I am that there are thieves that will do virtually anything to steal an automobile. These jerks are the ones that drive OEMs like Saab to create keys that require a technician to specially program the car to accept something as conceptually simple as a new key. But I digress.
I found that Saab had notified Crest that they would not be a Saab dealer when the sale went through. In fact, the sales manager informed me that Saab was actively shopping for a stand-alone dealer in this market — a store that sold and serviced only Saab. That set my head spinning. I figured that was a great opportunity for some Saab aficionado like me to get involved as a dealership owner/part owner/employee. Really. I have as many connections in the community and knowledge of automobiles as the next guy, so why not? I’d need tons of help with the business portion (read: most) of the operations, but I have ideas about the people who have that knowledge.
Before I could even work all of this through in my mind, I found myself the very next day phoning Swade with the breaking news that Saab/KG was off. Kaput.
igbok. Just different.
Note to Saab: I’m here, on the ground in Nashville, Tennessee ready to help. Just ask.
————–
What follows here is strictly editorial. That is, it’s my own opinion. Really, more a group of questions.
There were rumors about Koenigsegg Group balking at “flaws” with the new Saab 9-5. I’m not 100% where this rumor originated, but I’ll surprise you all with the following statement: there may be truth in that.
Before you get unhinged, let me tell you that I’m not talking about the automobile itself. Car technology has improved so much over the last several years that I can’t imagine any company bringing a lackluster design to market. I’m confident that Saab and GM Europe have designed and tooled up a winner with the 2010 Saab 9-5.
The “flaws” in any program can come in many facets. There may be technical issues, there may be cost issues, there may be commercial/legal issues.
There are so many believable directions that this discussion can take when you broaden the scope of the discussion to include things like costs, labor and contracts. Remember, Saab created the car as a division of the world’s largest automaker (well, they were the largest during the development). Who’s to say that the suppliers all embraced Koenigsegg Group on equal footing? We all know that KG was thinly capitalized, so I’m sure that the credit terms extended to them were different. I’m also sure that many of the suppliers had some concerns about Chinese ownership. They have technologies that could be copied, too. Remember that at least some of the components of the car are shared with other General Motors cars. What are the terms of that relationship? How will 9-5 costs be affected by General Motors changes? How will availability of those parts be affected if Opel is or is not sold? What if labor contracts to produce these parts don’t allow the flexibility to source them in more competitive markets?
If you are looking at the big picture, I can see many potential flaws with the 2010 Saab 9-5, especially for a novice to volume manufacturing such as the Koenigsegg Group. Again, they have nothing to do with the automobile, but plenty to do with the situation, especially with the financial plan.
The 2010 9-5 is the plan to save Saab. If it can’t make money, Saab can’t make money. Perhaps the economics and commercial terms simply didn’t add up for KG. That would make the whole 9-5 plan defective. And that has nothing to do with the automobile and its technology.
The point: If there are “flaws” in the way, they can be removed with the right expertise. Expertise that the KG seems to lack. Let’s press on.

——————-
And, in your Saab moment of Zen, this short article from the Wall Street Journal about the organized labor reaction to the failed Saab/KG transaction comes this quote from Annette Hellgren, head of Unionen, which represents white-collar workers at Saab:

“We built the first new 9-5 sedan in our factory yesterday, which was launched in Frankfurt in September.”

igbok. It’s gonna be OK.

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by Swade

Friday morning snippets

November 27, 2009 in News

There’s plenty going on in the background, I can tell you that. Meetings here there and everywhere.
——
Further to the stuff that I wrote about the EIB loan earlier today….from realtid.se

EIB’s decision to loan to Saab of 400 million still applies, says EIB Eva Srejber to Realtid.se. Koenigsegg-defection alters nothing – but a new analysis should be done.

They do mention that an analysis of the new ownership structure would have to be done, but theoretically, the loan decision could be maintained based on the plans already submitted by Saab.
——
I’m told that Jan-Ake Jonsson will be giving a prepared speech at an event this afternoon. The event was organised some time ago and some thought recent events might mean a cancellation from JAJ. Not so.
TTELA will be there, so you can check them out this evening to see what Jan-Ake has to say.
——
There is a Saab leadership meeting on as I write this. I interrupted Eric Geers on the phone as he was on his way in there. He had time to confirm that there has already been interest expressed in buying Saab from previously interested parties.
I imagine there will be a few of those meetings over the next few days.
You can picture yourself what will be on the agenda for that, but I’d guess positioning the company for a new buyer and enlisting government help in the interim – and in discussions with GM over the next few days – would be pretty high up there.
——
Bard Eker has shown considerable contrition since the KG deal fell over.
Not only did he go to the factory with CvK yesterday and offer himself for a decent beating should the workers choose to do so, he also placed an order for a 9-3 convertible while he was there.
This is a man with some serious regrets about what’s happened. One gets the impression that he was really into this.
——
I heard from a dealer in Europe today, with regard to the new Saab 9-5. He took orders for 5 sales of the new 9-5 – and all of those were in just one day.
Saab and GM just have to find a way to get this done.
——
Just in case you all forgot what this is all about – Saab make cars.
This is one of the best of them:
900CV-4.jpg
You might remember the 700hp Saab 99 that got a lot of coverage on the internets a few weeks ago. The guy who wrote the big English language story on that car was young bloke named James Mackintosh, on a website called CarThrottle.
James is the owner of a very nice Saab 900 and he’s just started a personal website to over his adventures with the car.
The convertible, above, is not his car (though he wishes it was) but it is for sale and featured on the site. Check them both out here: Saabsnaab.com
——
Feel better. Feel good. Feel wonderful.
–

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by Swade

Lots of talk about Merbanco

November 26, 2009 in News

Two sources have come out in the last few hours with stories about Merbanco contacting GM. Both Expressen and Aftonbladet have claimed sources informing them about Merbanco being back in the game.
Contact between Merbanco and GM, if it has indeed happened, shouldn’t come as a surprise. Allow me to call to your attention once again what Christopher Johnston had to say to Saabs United a few days ago, when the Koengisegg deal first fell through:

We are quite sad to hear the news. We remain fans of the brand and team at Saab. Under the right circumstances, would be pleased to look at stepping in and applying our experience to help.

So they were interested. The fact that they may have made a call shouldn’t be too surprising.
The Expressen article is full of facts from the interview I did with “CJ” earlier this year and re-published the other day. They claim to have a source and I haven’t checked with them about that, but due to past experience (and the substantive amount of quotation from the interview) I wouldn’t bet my house on it.
I’ve checked with Robert Collin at Aftonbladet and he assures me his source is well placed.
So if Merbanco are in – all well and good. As you know, if there are any substantive developments, I’ll get them to you when I can.

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by Swade

GP: BAIC/GM conflict sunk Koenigsegg Group

November 26, 2009 in News

There’s a few interesting news reports out this morning. The best of them is Göteborgs Posten’s article on what it was that broke the Saab deal.
Koenigsegg Group have been very quiet about why the deal broke down, saying only that delays in the process made the risks involved too prominent for them. As I wrote earlier today, with the money almost in the bag and the plans approved, there must have been more involved here than a little bit of fear.
GP claim that it was tension between GM and Beijing Automotive with regard to intellectual property that was the main issue.
The Googletrans:

GM thought it was good [when] Baic went in as a minority owner. Then the Chinese transparency is limited. When Baic demanded transparency in the level of their capital investment shrank GM, “said a government official.
Intellectual property rights are patents, trademarks, ideas and more. GM was concerned that much knowledge could be Chinese, in general, knowledge that was strategically very important in Detroit as GM chose not to sell the Opel to Canadian / Russian Magna.

To paraphrase……
GM didn’t mind at first when BAIC got involved because their money supported the deal and would help get it done. As time went on, BAIC began to demand a few more things in exchange for their involvement, which is when GM started to hesitate.
——
This story concurs with the second piece of Djup Strupery I’ve received today.
Djup Strupe passed on to me that BAIC contacted Koenigsegg Group on the weekend and informed them of some new requirements they needed for their involvement to go ahead.
From what we read here at GP.se, this is possibly not the first time this has happened, and the prospect of more delays whilst these requirements were negotiated between BAIC, Koenigsegg and GM were quite likely the delays that Koenigsegg have cited as the reason for them pulling out.
The GP.se article states that Koenigsegg Group evolved into a sort of intermediary between BAIC and GM, a role that they possibly didn’t expect nor had time for given the volume of work to be done.
It’s an interesting insight as to what’s happened here and GP.se’s story definitely rings close to what I’m hearing.
–
My thanks to Peter for the link.

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by Swade

Djup Strupe and the EIB loan

November 26, 2009 in News

I mentioned in my snippets entry earlier today that any potential new owner would have to re-apply for an EIB loan if such a loan was needed.
This came from a quote by Maud Olofsson, the Enterprise and Energy minister in the Swedish government. This is just a Googletrans, but it seems pretty clear cut:

Maud Olofsson also notes that the negotiations on EIB loans made are linked to Koenigsegg, which means that any new buyer must restart the process.
- As long as there is a buyer who needs to EIB loans to drag it on. But this is not a problem for a buyer with enough money. Do you have enough money, it allows.

So if you’re not Koenigsegg, you need to re-start the process. If you’ve got anough money, then you should be OK as you wouldn’t need it.
Well……
I’ve received a note from Djup Strupe* about this claim, and our inside friend begs to differ.
Putting it simply……
According to Djup Strupe’s knowledge of the matter, the EIB loan application is one made by Saab, based on a business plan developed by Saab with the Koenigsegg ownership group in mind but it could be taken up by any new owner who had a strong ownership structure in mind. These are the two critical elements – the plan and a solid ownership structure.
So if a new owner comes along and wants to implement Saab’s plan, then the EIB loans should still be available to them. Saab are the applicant and as long as the conditions described in the application are not altered, the loans should still be accessible. If any new application is needed, it would likely be a much quicker affair involving the credentials of the new ownership body. The plan is already known, approved and accepted (and just between you and me, well regarded)
The plan is the critical, time consuming element and that belongs to Saab.
——
*Djup Strupe is the name given to insiders who help us stay on top of things from time to time. It’s Swedish for ‘Deep Throat’

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by Swade

Thursday Snippets – Lost edition

November 26, 2009 in News

I really don’t know where to begin today.
So many opinions, so many headlines. Most of them have been covered in comments already, but I suppose my task is to sort the wheat from the chaff.
Armchair quaterbacks
There’s a bucketload of these going around at the moment. Automotive ‘analysts’ who most likely don’t even think about Saab until a journo rings them up and asks for an opinion. Most of them will be quite dismissive and give a summary comment like “GM will shut down Saab. It’s just not worth them thinking about”.
I’m happy to be as dismissive of them as they are of Saab.
It may well turn out that Saab does not survive this episode. That can happen. But having followed this story for almost a full year now, I know from various contacts inside and outside of Saab that work is going on in the background at a furious pace. They are not lying down.
If Saab is closed, it won’t be because of a lack of work in Sweden and won’t be because there’s no potential there to build something.
——
Problem Mathematics
I still can’t get the collapse of the Koenigsegg deal to add up.
fabela.JPG Fabela says it was a complicated deal involving a lot of parties and they weren’t able to get all the parties moving at a quick enough pace. See the interview here.
But the money was just days away. This has been confirmed by Joran Hagglund and the Swedish Debt Office. They would have been up and running an just a few weeks.
Were their margins for time so incredibly fine tuned that 10-14 days is the killer difference?
He says they no longer believed that the business plan they’d developed could be delivered because of the delays. Again, this is the business plan that was reviewed by so many different bodies and approved, yet it was not robust enough to last a few more weeks?
I just doesn’t add up.
And in the next sentence he says the plan was strong and viable.
The money was just a few weeks away. So a strong and viable plan should have been able to be implemented. Didn’t this strong and viable plan go up to December 31st, the date GM had set for Saab?
I just does. not. add. up.
There must have been something else at play here. There is an unseen hand at work with one of these players that has folded this thing up. There’s no other explanation.
——
A gutsy appearance
CvKfactory.jpg You’ve got to tip your hat to CvK and Eker for visiting the Saab factory today to try and give some account of what went wrong. By all accounts they were shown some support by the people there, which is the right thing.
Things have gone wrong here, but CvK & co have had a genuine crack at this. The bigger fault here may lie with GM and Deutsche for selecting them in the first place. But I digress…..
CvK said to TTELA that “It was important to come here and tell us more about why we pulled ourselves out” but from the Googletrans that I can see, there doesn’t seem to be too much more of an explanation that we’d already heard.
——
It’s a Maud, Maud world
If there’s one thing that’s really annoying in all this, its the point scoring exercise going on between politicians in the Swedish media.
Thankfully, in between volleys, Maud Olofsson did have a few things that were notable and sensible to say:

  • A new buyer coming in is going to have to be able to get the deal tied up quickly. They will need to be well backed and well resourced.
  • The government will work with whoever it is to do what they can to get things done, but they won’t take a stake in the company (which we all know)
  • The EIB loan process that’s been undertaken so far was tied to Koenigsegg’s plan. Any new potential owner requiring and EIB loan would have to start the process over again.

That last one’s in bold because it’s pretty important.
——
A final clip, from Automotive News:

A Swedish government official said today that General Motors Co. appeared to still have hopes of being able to sell its Saab unit after the wheels came off of a planned divestment this week. “I talked to GM last night and my impression is that they have not given up hope,” Joran Hagglund, state secretary at Sweden’s Industry Ministry, told reporters.

——
And for those of you thinking that GM might still retain Saab, you’d best bear in mind the news from Germany:

General Motors Co. expects to cut around 9,000 jobs at Adam Opel GmbH, or nearly 20 percent of the ailing German carmaker’s work force, as part of a $5 billion restructuring, a top executive said Wednesday.
Nick Reilly, the head of GM’s international operations and interim CEO of Opel and its British sister brand Vauxhall, outlined the planned cuts, which were slightly fewer than anticipated, but said no decisions had been reached regarding plant closures.

Cutting 9,000 jobs in Germany and then finding a viable excuse to keep 4,000 in Sweden?
Good luck selling that one to the German government just before asking for aid.
Saab need to be sold. It’s the only viable way to survive.

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by Swade

You make the news – Koenigsegg choke edition

November 25, 2009 in Saabology

After my rather early morning, I’m going to cross my fingers for an uneventful night (I think the good people at Saab could do with no more bombshells) and get an early one.
Should there be some breaking news, please feel free to keep each other updated here.
Here are a few links to keep you going, all from The Local.

I’ve received some email already about the Expressen article claiming the 9-5 is defective and that’s why Koenigsegg jumped. I’ve just given that article one sentence more than it deserved. Please don’t waste your time looking for it. It’s five minutes of your life that you’ll never get back.
Have a good night (day).
–

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by Swade

Re-posted: Interview with Christopher Johnston from Merbanco

November 25, 2009 in Saabology

So Saab could be on the market again.
One of the potential buyers earlier this year was a company called Merbanco, a private group based in Wyoming, in the United States. Christopher Johnston (who you quickly get to know as CJ) is the CEO of Merbanco and I interviewed him earlier this year.
Whilst CJ was coy about their involvement in this process – by necessity – he was happy to take some questions via email and provide some insight as to how an (alleged) potential buyer viewed Saab at that point in their history, and what they’d need to do under an (alleged) new owner in the future.
Koenigsegg are now out of the picture. The big question is whether or not Merbanco might seek to get back in. They were a favourite of mine prior to the winning bidder being announced and I seriously hope they look at the Saab acquisition again. If they do, you can possibly expect to hear a little more from this guy in the future.
As i did earlier this year, I’d like to thank CJ for his time in taking our questions and permitting them to be shared here on site at SU.
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Note: this email interview was conducted back in June, just after Koenigsegg were selected as the preferred bidder. It should be read in that context.
Christopher Johnston (CJ): Steven, Thanks for contacting us regarding the recent news reports. Without confirming anything, we may be under a non-disclosure agreement and therefore wouldn’t be permitted to discuss detail, or even confirm, any involvement in Saab. Even if involved and permitted, we would not divulge proprietary details as that would not be the right thing to do.
That said, I have visited Saabs United often, enjoy reading the comments, and assume that any parties interested do the same. I don’t know if or why anyone is interested in our views, but will do my best to answer questions in general.
Saabs United (SU): What Saabs have you owned in the past. What do you own now?
CJ: Past: 900 Turbo, 9000 Aero, 9-5 sedan.
Now: 9-3 Cab for summer.
Here in snow country, I’m waiting for the AWD ng9-5 and the 9-4x. Living in a place where it is applicable, I love the moose test!
SU: When did the Saab sale come across your radar and why were you interested in the transaction?
While our name was leaked last week, we can’t discuss Saab publicly and can’t even confirm if we were involved. Let’s say I have been a fan of the brand since 1982 and love to acquire good “passion” brands that are under stress internally or externally. The first new car I ever bought was a Saab. We have had a nice history here of finding and restoring ailing brands.
SU: Can you give us an insight into that history of turning companies around? We’ve heard of the AGCO connection, though information was limited on the web. Can you expand on that and are there any others you’d like to talk about?
CJ: My Father and Partner was a founder of AGCO, now the second largest Ag equipment company in the world. Following the initial acquisition of “stressed” Allis Chalmers in 1990, AGCO (NYSE) proceeded to do more than a dozen add-on strategic acquisitions, the largest of which was Massey Ferguson. Dick retired from the AGCO Board in the late 1990′s. The Johnstons, with partners, joined to execute another turnaround in the acquisition of Republic Realty Mortgage Company, then the largest privately held commercial mortgage banking company in the US. RRMC was purchased from First Interstate Bank of Los Angeles and, following two add on acquisitions from NationsBank (now Bank of America), RRMC was divested to and became the backbone of General Motors GMAC Commercial Mortgage Corp.
continued after the jump……

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by Swade

The morning after: Saab headlines

November 25, 2009 in News

DI.se are reporting that BAIC are “assessing their options” in the fallout of The Koenigsegg Decision®
BAIC still plan to expand and become a global company, so Saab might still be on their radar. Time will tell if they are on GM’s radar.
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E24 opine that the evidence lends considerable support to the argument for closure of Saab. It’s bleeding cash, has very low sales and they think it would need to be supported for another 6 months while a new buyer was found.
The other option they entertain is merging Saab with Opel, but they dismiss this as it’s been tried before and has not worked. In addition, the majority government-owned GM would have a difficult time explaining to it’s shareholders (the people) why it’s supporting what is reported to be a loss-making company on the other side of the Atlantic.
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TTELA consider two possible lifelines for Saab – GM keeping it open or GM selling it to BAIC.
Reasons they might keep Saab are GM’s improved cashflow since the ‘sell’ decision was taken, the fact that the company is lean and with minimal debt, and of course the cars that are ready to go.
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TTELA also report that the deal really has collapsed at “two minutes to midnight”.
They spoke with Industry secretary Joran Hagglund, who confirmed that the EU decision was most likely just days away, and that with the government guarantees, the money could have started flowing around 10 days later.
We really were right on the cusp.
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Bloomberg report a possible cause of the hitch

Koenigsegg Group had sought to obtain in advance all 400 million euros ($600 million) of financing approved by the European Investment Bank, while the lender planned to disburse the funds in tranches, another person said.

Perhaps the difficulty of this cashflow model is one of the critical factors in Ksegg pulling out?

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