E24: Some suppliers might lay off people

E24 reports that some suppliers are discussing their options.

But they [an unnamed supplier] were discussing layoffs?

– Yes, layoffs and cutbacks.

Svenåke Berglie thinks Saab needs to come up with a solution within the next few days so layoffs can be avoided.

This news is not particulary fresh. We all know it would come to this if the production did not resume soon. The stakes are higher than “just” the people working for Saab in Trollhättan. The tax payers stand to loose a lot of money, but not to Saab the company as is commonly believed. This misconception has been allowed to fester too long and hopefully the Swedish government will help Saab survive rather than waste money on windmills (what a silly thing for me to write, but I was not the one who made the windmill-suggestion in the first place).

kaiger
Member

http://di.se/Artiklar/2011/4/27/234022/saab15-Leverantor-kraver-besked-om-Saab/

Markus Nyman from IAC says, they get positive signals from Saab and other stakeholders to continue..

rodmylon
Member

He says “they NEED TO GET positive signals from Saab…[soon]”

kaiger
Member

Oops..sorry. Google translation ate the most important word

Sensonic
Member

I’ve now delayed my car order for about a week right now and I cannot hold it much longer anymore. If this situation won’t be solved during this week, I’m afraid I have to order a car of other brand than SAAB…

So please hurry up!

obelix
Member
Thanks for that insight, Sensonic. It’s a shame that at the moment that Saab is getting back on track the EIB creates these problems. The standstill of production, combined with the buyers walking away, will cost Saab millions. I wouldn’t be too worried about buying a new Saab now, though. You can be assured of the availability of spare parts and qualified maintenance personnel. My 9-3SC is a couple of months old, but other than that there is for me no reason not to buy a Saab at this moment. I do hope they will hurry up, but be assured… Read more »
74StingSaab
Member

why buy another brand?

v4ever
Guest

If you want Saab to survive surely you attempt to buy the Saab regardless?
As it seems you may not it kind of shows why we are in this current position.

WooDz
Member

Yes in an ironic twist of the tale, the instigators of this situation are reaping the reward of their actions. What goes round comes round.
I still firmly believe that the press have a lot of blood on their hands due the way they have construed, alleged, mis-quoted and over-exaggerated situations. Journalism at its very worse.

Jeff
Member

Very well said WooDz. I was saying essentially the same thing the day after this all started. This was the wrong way to handle the situation. Imagine if they hadn’t cut off supplies and were working behind the scenes to get paid and none of this ever got out into the media. Some of you may think it sounds naive to think this way, that the suppliers were at the end of their ropes with payment, but I have to ask you are they better off now than they were then? They started a pretty vicious cycle.

Red J
Member

Jeff,
they overreacted, but I can understand this, as many of them had to write off 75% of Saab debts one year ago. But remember that just before this all began a man called Vladimir Antonov started spreading that Saab didn’t have enough money, if I remember well.

But now is no time to blame, it is as it is, and Saab and the suppliers should work together to find a way out.

Jeff
Member

Oh there is plenty of blame to go around sadly, but I’m with you that they need to think of it less as blame and more as lessons as they go forward, while they work out the best solutions to solve their current problems. Very, very expensive lessons.

mike saunders
Member
Wait….you’re blaming creditors and the media for the problems of a company whose products simply haven’t sold well enough to maintain its balance sheet? As Red J said, many of those suppliers took a bath when Saab reorganized and few were willing to do it again. Suppliers don’t operate on blind faith, at least not for very long past 90 days. 😉 and VA was actually proven right on two counts: Saab didn’t have enough money, despite all the happy talk coming from Trollhattan, and some of the early sales figures were optimistic at best. (One of the odd ironies… Read more »
Khrisdk
Member

Hmm.. Not too sure about the fact stuff in News.

We have no solid info at all about how many suppliers and how much money it was about.

But when the FUD rollercoaster took off, a lot more joined.
I am not one for conspiration theory, my main interest it chaos theory, and I think that all parties, including Saab management forgot to take into account the human factor and the effect of lousy media management
And human factors in my view had much more effect than Money in this case.

mike saunders
Member

Khrisdk, I think your request for solid info was provided by the on-the-record confirmations of multiple suppliers not being paid, so let’s put that to bed.

As far as media mismanagement, yes…you’re absolutely right, but the media fumbles have little effect on the underlying money issues. Without the money woes, there would be no need to manage media.

Jeff
Member
Whether or not this was a timebomb that would have gone off eventually I’m not questioning Mike, I’m just saying that everyone from the suppliers on to Saab management is to blame for handling the situation in a very damaging way. From the suppliers missteps, imagine if production hadn’t shut down but merely slowed. From VA’s missteps, why did it take so long to formally apply to become an owner, all indications were that GM hasn’t had a problem with it since the end of last year. From Saab’s standpoint, why weren’t they more open and honest about the harsh… Read more »
JasonPowell
Member
From Saab’s standpoint, why weren’t they more open and honest about the harsh reality they faced but were working diligently to secure more long term financing before it blew up? Jeff, Is that realistic though? Are they even allowed to put that out there? and what would that have done? I don’t think any company comes out and tells the public how bad they are doing financially because it hurts brand confidence. To even come out and say “we are working with Chinese Auto companies for a long term financial solution” would have been the set up of a Swedish… Read more »
Ebolie-21
Member

How about these suppliers would help Saab instead of off laying their own personnel? They could extend their credit volume against some guarantees of Spyker, Saab or a sub company and then this would ease off the pressure on Saab and would lead to production take-up and they would not have lay-offs and the notorous Swedish State and taxpayers would not to have to costly sustain people without work. In addition they could intervene on behalf of Saab in public and with the Swedish Government. Th

v4ever
Guest

Are you being serious? To qutoe Mike Sanders
“As Red J said, many of those suppliers took a bath when Saab reorganized and few were willing to do it again. Suppliers don’t operate on blind faith, at least not for very long past 90 days”
These people are in business for themselves not to keep Saab alive on an off chance.

Khrisdk
Member

I am pretty sure that many of the suppliers are more than willing to help out Saab as much as their own economy allows them to.
If it is really money talking they need the business of Saab, so they have common interests.
The only problem is how much more both they and Saab can take.

ivo 71
Member
I guess most of the suppliers were willing to cut Saab even more slack when all his started. Only a few went public with the payment term problems but, by doing that, they did set off the avalanche of partly truthful and partly unnecessarily alarmist comments and opinions. I can well imagine that some of those, who did remain silent before, started thinking about their own positions as well, decided to apply a less tolerant attitude toward Saab’s payment terms and, the worst part, let that become public knowledge. All that evolved into a chain reaction in the media. Like… Read more »
RS
Member
Ivo, this is precisely what happened. Perception becomes reality if you keep hearing it over and over again. What a shame the Swedish press just couldn’t give Saab a fair chance to do its business in peace even two months before the doomsday people were dragged in. Not one week went by without digging up some kind of negativity for the past year. I’m sure it must have had a huge effect on the suppliers (not to mention customer) confidence and that they were obviously ready to push the panic button the minute there was a glitch. As I’ve said… Read more »
robertp
Member

VA on twitter:
vladantonov1975 Vladimir Antonov
To SAABs very valuable suppliers! Please don’t fire your people for a while! Hold on a bit PLEASE!!!

Bravada from GMI
Member

Management by Twitter? This is getting grotesque… I miss JAJ…

hans h
Member

+1

Red J
Member

Bravada,
to be honest, I don’t think that VA Twitter activities should be seen as his main communication channel. It is more, IMO, of an well filtered echo for us.

Just a thought.

coggs
Member

>I don’t think that VA Twitter activities should be seen as his main communication channel.<
I’m going to abridge that thought with I don’t think they should be seen. PERIOD!
Call me old fashioned but it all seems seriously amaturish.

74StingSaab
Member

I have to agree…. conduct yourself as a serious businessman… if you’re going to tweet… do so only when needed and appropriate.

Khrisdk
Member
In regards to VA’s twitter comments, you can not stop using Twitter when everybody knows about youe existence. Silence will be percieved as ominous. In that case it is better to keep on tweeting your own filtered truths. It isn’t because the tweets reveals much groundbreaking news. Regarding Lars Carlström: I also think he should cool off a little. But what I am also noticing is that he is actually having an effect. Different government entities have been leaking half info ever since Dec 2009, and the press has been all over it and pointing the fingers at Saab, VM… Read more »
Quijote
Member

I agree with Bravada. Has anyone even seen Mr. Antonov’s feed?

Very amateurish indeed. His intentions are good, but it just doesn’t come off too well via tweet.

rune
Member

Back in the day, we used to complain about GM being both tightlipped and tightarsed.

Now, when the owners are finally sharing information, we still do not approve?

Do not look a gift horse in the mouth.

74StingSaab
Member

Rune, I was just gathering my thoughts and you did it for me. I think we all agree VA should continue to tweet, but do it in a business like way.
He’s a young man passionate about saving Saab…. I think we can all cut him a little slack… It’s not monopoly money he’s wanting to spend so he has a right to do as he pleases. As sideline people all we SHOULD do is offer support and advice…

Hey, VA, tone down the tweets.. , but keep tweeting when appropriate…..
simple 🙂

BoeBoe
Member

They way how you say things also counts…
You can bring a message in a lot of different ways. VA can continue to use Twitter, but the should be more careful in the way the expreses himself.

GerritN
Member

Social media like twitter are just another way to manipulate public opinion, why do you think Swade got offered his job at Saab. So, you can see VA tweets as amateuristic or as a cunning way to bend the purchase/lending/whatever process.

Jeff
Member

Exactly right. This man is no fool. And his off the cuff remarks make him instantly more relatable, he’s just like any of us commenting on SU. Let Victor, Eric G. and the new CEO be the professionals, I’m content to have at least one higher up at Saab race for the SaabsUnited Historic Rally Team and stay down to earth.

Juerg_U
Member

First I liked the tweet, after your comment, Bravada, I was not sure anymore, but now I made up my mind and think, it is an honest statement, I believe him, that he wants the best for SAAB and its suppliers. He wants to save the company and being succesful with it. And you know what? It is DIFFERENT! Yeah, thats what we all say about SAAB. Think different! He does it and I LIKE IT.

Keep on moving VA! You got my support!

turbin
Member

I support VA and LC in their comments. Foot-dragging and lack of plain language killed K-egg’s bid for Saab and they wisely pulled out knowing that they would be in the situation Saab finds itself in now. CvK was roundly criticised for being too quiet.

VA knows what he’s doing and he’s doing it the young Russian way. Both him and LC were inside witness to what happened through 09-10 and are not about to see the other parties get away with the same crap again. Then they were quiet and look where things are now.

KaiC
Member

SAAB already should know it is wasting time on plan A.Cause be afraid the bankruptcy EIB is nervous about the loans..

KaiC
Member

SAAB should already know it is wasting of time on plan A. Be afraid of the bankruptcy EIB is nervous about the loans.

Jeff
Member

Saab is on Plan G right now (which at some point became F, then E, then D, then C, and now B). So long as they want to keep up the creativity to get this through, then I’m okay with whatever rabbit they’ll be pulling out of their hats.

Roachaldo
Member

I don’t think Mr Berglie has helped one bit in all of this. I recognise he has members interests at heart but his PR has been atrocious. He needs to consider keeping his Tongue in his head & using it appropriately behind closed doors.
I appreciate the support the suppliers have given but if they have such a large reliance on one customer that is a very risky strategy & you should therefore not be looking to kill the golden goose.
Háll skeften Mr Berglie! Tänk på framtiden inte bara nu.

klypp
Member
The EIB draft is no solution. At best it would have meant 90 days of continuous nailbiting, extremely nervous suppliers and succeeding obituaries in the media. Carlström is right, it was a road map to bankrupcy. Seems like VA has made a major breakthrough these last days. All parties – whether willingly or not – has actually accepted him as an owner. Finally! He is now free to move and looks confident to come up with solutions without succumbing to a ridiculuous 90 days deadline for it all. And I’m glad to hear what Carlström signals. Time to dump these… Read more »
BoeBoe
Member

All parties – whether willingly or not – has actually accepted him as an owner. Finally!

Did I miss something? VA is not accepted as an owner at the moment. He is still under investigation.

sr
Member

II think Klypps point is that if VA can raise enough money to repay the EiB loan, nether the NDO, EiB nor the swedish government can stop him from becoming a shareholder. 215 million euro will release collateral worth twice as much ..

per
Member

I like his tweets, he dares. let’s face it folks, there is a new generation coming in the fast lane. And they are blinking with their lights.

klypp
Member

BoeBoe, what I hear is that he can buy the premises if the EIB loan is paid back within 90 days. Every relevant party has accepted this, as far as I know.

JasonPowell
Member
The Transparency Policy of the EIB has been heavily criticized by NGOs in the past. In 2004, Article 19 issued a memorandum in which it accused the EIB of failing to meet international (including EU) standards on openness. The same year, the NGO coalition Public Funds for Public Benefits called EIB “the least transparent, least accountable and least democratically controlled institution in the family of agencies entrusted with implementing EU policies and among public.” .[7] However, NGOs acknowledge important improvements in EIB’s transparency since 2004, and new corporate policies adopted in 2010 are thought to go in the right direction.… Read more »
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