One more round with the EIB *updated
April 25, 2011 in Uncategorized
(Reuters) – Dutch luxury car maker Spyker Cars (SPYKR.AS) said the European Investment Bank has sent Saab a draft outline of a deal aimed at giving the Swedish car maker a cash lifeline.
“They have sent us a draft, but we do not want to go into the public domain and will not make any comment until this is sorted,” Spyker Cars chief executive Victor Muller told Reuters. “It seems like this is being fought out in the public domain.”
He declined to say when talks between the EIB and Saab will take place again.
Production at Saab has been halted for more than two weeks after it failed to pay suppliers’ bills due to a cash crunch.
A Saab spokesman said on Saturday it was uncertain when it would be able to restart production after the EIB had set tough conditions on the new financing deal. The company has so far refused to reveal the full terms of the deal. [ID:nLAN364334]
A source familiar with the talks had said one of the terms was that the EIB wanted Saab to repay money it had already borrowed from the bank within 90 days of a planned liquidity injection being carried out.
Saab is planning a sale and leaseback of Saab property and had been hoping the EIB would agree with the deal after the Swedish state backed the agreement earlier this month. (Reporting by Aaron Gray-Block; Editing by Dan Lalor)
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UPDATE:
Sweden’s main industrial workers’ union IF Metall said in a statement on Monday that it couldn’t see why there had not been a quick approval from the EIB after nods from both the Swedish state and the debt office.
“What information is the EIB providing? It is said that the terms are harsh. What are the terms? We require information on what this is about. It is time that everyone involved speaks out,” IF Metall chairman Stefan Lofven said.
Carlstrom said Antonov would be meeting with the Swedish debt office on Tuesday regarding his application to take a stake in Saab. ($1=.7158 Euro) (Reporting by Mia Shanley and Aaron Gray-Block)
Original found on Reuters
kaiger said on April 25, 2011
Does this mean an updated agreement from today or refers this just to the “old” agreement with the tough conditions from thursday?
SaabKen said on April 25, 2011
Sorry if this is a dumb question, but is the 9-4X production (in Mexico) being hampered at all by the suppliers disruptions and other financial-related issues ?
BoeBoe said on April 25, 2011
I read (somewhere in the comments here) that the introduction of the 9-4X in the USA is delayed from May until “fall 2011″.
So I guess the production/introduction of the 9-4X is also hampered by this problems. Maybe GM also didn’t receive any money?
I also wonder what this delayed intro of the 9-4X will do to the salestargets. If this is true I guess the impact will not be very good. The 9-4X is a very important new car for the American market and a delay in the introduction will not help to gain confidence.
WooDz said on April 25, 2011
BoeBoe can you link this information please. I’ve read nothing about the 9-4x being delayed; What I’ve read is that order books are open now with deliveries starting soon after. Europe will see deliveries later in the year.
For anyone in the USA interested in the 9-4x, I suggest you speak will your local dealer asap.
saabdealer said on April 25, 2011
This is NOT correct. The 9-4X will be here in North America in JUNE.
I think the Fall ETA was incorrect info based on launch in other markets.
The 9-4X has not been affected other than by normal supplier issues (Japan’s paint).
cmhohioman said on April 25, 2011
Sorry….But I never understood how the 9-4X could be such an important car to SAAB in the USA especially with rising oil prices??? Seriously….people are freaking out over high gas prices…and now a gas guzzling SUV.
Khrisdk said on April 25, 2011
They may be freaking out..
But they still keep buying Gaz Guzzlers.
Just look at the sales figures of other SUVs in NA
saabdealer said on April 25, 2011
Because it plays in a segment that represents 30 percent of the market. As for “gas guzzling”, 25 MPG is not going to hurt sales dramatically.
After the gas price spike a couple of years ago, large SUVs lost half of their value overnight, sales of fuel efficient small cars shot through the roof. A couple months later, the gas prices went down and the market corrected and the waiting lists for Prius’ and the like disappeared.
Now with the latest gas $ spike, fuel efficient small cars’ sales did increased but you haven’t seen the same trend in loss of value with large SUVs (I’m not calling the 9-4x a large SUV). The market didn’t react as it did before because it saw a cycle in the pricing. I’m not predicting gas prices in the near future, just looking at the trend in the industry as it relates to sales of SUVs and “fuel efficient” cars.
It’s impossible for a manufacturer to develop and bring to market a car based on the whims of the buyer in the NA market.
The 9-4x wil be boost for Saab based on demand of the segment, sensible pricing and what if offers from a styling and content standpoint.
Chris Carrier said on April 25, 2011
Consumers in NAs’ wounds are somewhat cauterized by the gas prices from four years ago. We figured we’d be back here at some point at Hybrids are plentiful now if you want one.
SAAB LANCE said on April 25, 2011
Pinning ANY hope for Saab’s questionable sustainable future is being blind to the obvious…..That reality being a company whose future is questionable even in the eyes of those aware of it’s current existence.I had three separat conversations wih men ay a Holiday party this weelend.ALL three men thought SAAB was gone…history,out of business! The N.G. 9-5 has had almost a year too establish itself in the market, six months in the more affordable intro model.Look at the sales figures…..even with the same old huge rebates, the numbers are pathetic! The car is very attractive…it is also a unmitigated market failure across the board. Now we pin our hopes on the introduction into the market a cross over mid-size SUV, 8 YEARS AFTER THE CROSS-OVER MARKET BEGAN. How many established models will it be vieing for market sahare against? Let’s see how many I can name: Domestically for starters it’s sister model the Cadillac SRX,Lincolns MDX,Fords Edge and newly styled Explorer,Chevrolets Traverse,Jeeps new Grand Cherokee. Asian: Hyundai Santa Fe,Kia Sorrento,Mazda MX 7 and MX9, Nissan Murano,Infiniti EX 35, FX35 and FX50,Mitsubishi Outlander,Honda CRV. Europe: Porsche Cayenne,BMW X-3 and X-5,Audi Q5 and Q7,Volvo XC-60 and XC90, Land Rover Freelander…….thats 24 models and I know I missed a few.And into this mix,carrying this years burden od sucess comes number 25, eight years lat and from the smallest of the manufacturers.And the only one that the average consumer on the street thinks is defunct.
Jeff said on April 25, 2011
Your comment was filtered by our spam engine, but despite the negativity I figured I’d approve it anyway. I think you’re right, Saab has an image problem. To think that it can’t be fixed is a huge overstatement. There are steps, mainly involving customer relations, PR, and financial restructuring, that can turn the situation around. We’ll go into them all in great detail on SaabsUnited in the coming weeks.
To say that Saab shouldn’t be hopeful about the 9-4x introduction is slightly naive, I have to say. You do realize Cadillac sold 76,000 SRX crossovers last year, right? The Saab is more attractive, and priced the same. No reason to be negative there.
SAAB LANCE said on April 25, 2011
just to clarify….I meant to say “Pinning any hope for SAAB’s questionable,sustainable future on the 9-4X is being blin to the obvious….
Chris Carrier said on April 25, 2011
(re: the 9-5) Not sure I’d say eight months is almost a year… when the spring/summer are the missing four months. I don’t think the car is a failure as much as it is a slow starter due to the damage to the brand rep.
Jeff said on April 25, 2011
Saab was on track to sell around 60K cars before the production stoppage. Add to that the 9-4x sales of around 15K (which I have to say is an incredibly small number considering the SRX sells 5 times that), plus the 9-5 SC in Northern Europe, and you’d be around 80-90K sales, right near the break even. Unfortunately the supplier/finance mess is going to mean a lower sales forecast for the year, but to say that the product itself isn’t right for the market, you’re living on another planet. Though I noticed you’re in the Bronx, and I’m pretty sure there are plenty of SRXs around there too…
saabdog said on April 25, 2011
The 9-7 was a big seller for Saab, and IMO, it was far from a true Saab.. I see no reason why the 9-4x could not be a revenue generator. The Porsche Cayenne has done wonders for Porsche…some would say it helped to save the company. I think the new 9-5 could also make a sales turnaround with more aggressive advertising, leasing and a tweaked pricing structure.
SAAB LANCE said on April 26, 2011
Saabdog…… heres what’s taking place to try and shore up the sales of the 9-5.I hold in my hand a copy of the Philadelphia Inquirer, Monday April 25,2011. On page three of the first section a dealer whose name I will not mention has the following offer listed in a HALF page ad! Brand new 2011 Saab 9-5 SPORT SEDAN! Total List Price……….$ 41,345.00 Discount/Rebates………-$9,746.00 Buy for $31,599.00* *includes $1,000.00 Saab Loyalty if qualified. ’nuff said.
And I might add, I hope this does not seem too “Negative” for posting ,as my last post was editorially commented on with a veiled threat of censoring.Let me say this to establish my bonafides…..I sold Saab’s from 1993-20010. I’ve actively posted on this web site since it was called……I can’t even recall.Whatever it was called at least 10 years ago and NO one was a bigger Saab booster than I….if what I post is not suitable because it is not positive,well there is a viewpoint that falls between positive and negative,Jeff.It’s called reality.
Mr. Negative said on April 26, 2011
@SAAB LANCE- I think what you’re saying is that ,in the old days, SAABs were for straight- shooters. If you were full of crap, then AUDI, BMW or MB was the car for you. And in the current situation it’s hard to be a straight-shooter without being accused of being a naysayer- hence my user name.
saabdog said on April 26, 2011
Saab Lance — It sure seems Saab dealers are understandably in a bit of a panic over slow sales. Personally, I think it would be better if Saab were to price the 9-5 maybe a little less expensive on the front end (not a lot, but some) — this way, maybe there would be less of a need for a fire sale, which I think damages the brand. Also, I believe Saab should be hyper aggressive in its lease programs, and possibly throw in complimentary oil changes and other consumables (wiper blades, etc.) on all new Saabs (leased or otherwise) for a period of time to instill a sense of value for the product.
Personally, I wouldn’t visit SU if it was nothing but a “yes rag”. The Saab community must be able to assess itself positively or negatively in order to move the brand forward. I respect SU because it has always been open to constructive criticism and I’m confident it will continue this tradition in the future.
CJ said on April 25, 2011
More basic analysis:
Mr. Muller’s comment is very wise. There are too many cooks in the kitchen – too many people making unhelpful (silly) statements. Accusations by some involved about Sweden or the EIB “wanting” Saab to go bankrupt only polarizes, and does nothing to bring the parties together. First rule of borrowing…Don’t ever disparage your lender, they are your lifeline.
Saab ran out of money. It isn’t the fault of the government, the suppliers, or the press. Neither the government nor the EIB is an ATM, and lenders are conservative. This will boil down to a few issues: is there enough goodwill and credibility to form a solution, and can the collateral issue be solved? Or, have bridges been burned by overpromising and accusations? My read of the tea leaves shows there may have to be major changes required in order to get this done. Remember GM and their bailout… Lowering the loan amount is only meaninful if the lender has better collateral pool (or ratio) than they had before.
On another angle – I have been puzzled of late and a nagging question that haunts and must be asked today: Why the heck doesn’t Spyker simply complete a secondary (public) offering at the Amsterdam stock exchange? Have they tried? They are a public company, there appears a market for their shares, and they trade everyday. This is the reason why public companies exist…this is the traditional way to access capital. That, or maybe a private placement? Clean and without government involvement. This could be doable in 90-120 days and meet the EIB conditions. Heck, maybe the government would even buy some of, or a unique class of, these shares?
The rescuers have every good reason to not have this turn into a recovery mission…unless the rescue itself puts the rescuer in greater danger.
Jeff said on April 25, 2011
Here’s what I read CJ:
When Victor says, “They have sent us a draft, but we do not want to go into the public domain and will not make any comment until this is sorted…It seems like this is being fought out in the public domain.”
he means
“Others should try and please keep quiet so we can get this done with as little public damage or worry about Saab as possible.”
Khrisdk said on April 25, 2011
+1
GerritN said on April 25, 2011
Doesn’t issuing more stocks dilute the value of the existing stocks? And doesn’t that, in the current situation, lead to Spyker shares being dumped starting a further down spiral of the stock value?
I also seriously doubt that the Amsterdam stock exchange, again in the current murky situation, would allow more Spyker public offerings.
Imho, the best is to tighten your seat belts and see how the whole issue with loans and collateral plays itself out. The people handling this are assumed to be professionals and nothing that we are saying will make a difference other than rocking the boat even more.
Iggy said on April 25, 2011
By the way, Vladimir Putin is coming to Stockholm on Wednesday to meed the King and the PM. Maybe he will ask a question or two on “how come the Russian investors are considered here in Sweden as criminals and money laundrettes?” I think he shall definitely do that!!!
kaiger said on April 25, 2011
http://di.se/Artiklar/2011/4/25/233779/EIB-vagrar-avsloja-kraven-pa-Saab/
EIB still repeats today in the evening, that they just wait for GM?
Khrisdk said on April 25, 2011
Well
If this is new stuff, the same goes for Eva Srejber as for Lars Carlström.
They have nothing to say, but keeps talking.
One Word for all parties:
Unprofessionalism
I will await the official Saab response when it comes.
VA will be in Sweden tomorrow, so things will probably go fast from there
BoeBoe said on April 25, 2011
The comment about the delayed introduction of the 9-4X can be found here:
http://www.saabsunited.com/2011/04/9-5-sc-available-this-winter.html
Don’t know if the guy who posted it is reliable.
Maybe a US dealer can give us more information?
Red J said on April 25, 2011
Boe Boe,
English is not my mother tongue, but
is a very speculative sentence, imho.
BoeBoe said on April 25, 2011
I guess that with the sentence “now I see coming this fall” he means:
Now I see: “Coming this fall”
Maybe he saw it somewhere on a website, billboard, folder or something else. But when nobody else has seen this it is probably nothing.
Nicke said on April 25, 2011
Is not there a chance that there will be a completely or at least in part a change in ownership here?
If example genii help with money or VA, then of course they require stakes ..
So if everything goes so far that it becomes bankrupt, then we might see new owners.
I read an article in Auto Motor & Sport, where they interviewed Lars Carlström (correct name?) he said they have serious negotiations with several companies. He would have preferred a way that an investor from India had come in with money or bought or BMW …
How do you think this will end?
BoeBoe said on April 25, 2011
Antonov already has such a construction. He “sold” his shares to Victor Muller, but he also lent Victor Muller the money to buy these shares.
So Victor Muller bought the shares with money from Vladimir Antonov. So you could say that Antonov already “owns” the shares.
Jeff said on April 25, 2011
Ridiculous isn’t it? Makes it pretty clear that it comes down to where you were born and your ethnic background, not your wallet, work ethic, or business acumen.
Chris Hansel said on April 26, 2011
Well boys, here is the good news. The American public and press, for the same reasons it didn’t understand that Saab was back, will not understand, or be informed, that Saab is now in trouble again. It will take a while for the news of the stoppage of production, to be comprehended.
On the stock front, I tried to but some stock today, but found that at least on Ameritrade I could not, as it is not listed on one of the normal American exchanges. Problem is unless you are in Europe it hard to do, at least on line. I think instead of driving around with Save Saab signs, buy some stock, or the new 9-4x to help the company. As soon as I can get to a phone during business hours I will try the stock thing again.
Chris
saabluster said on April 26, 2011
Do let us know if you are successful buying stock and how you did it. In fact it would be nice to see this brought to the front page as it is one of the few things we can do to help and I am sure many here would be willing. Thanks
Börjesson said on April 26, 2011
Has this been mentioned yet? Antonov is apparently in the process of buying Portsmouth FC. At least according to the Football League, he is apparently a “Fit & Proper Person”.
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