News on the production stop

Semcon’s CEO, Mr. Kjell Nilsson, seems quite optimistic on SAAB, and yesterday he made this declaration to ttela.se

– I think we have a [more]clear picture of how the [real estate] transaction looks like on Monday, and then a production start again after midsummer. It will be tough two or three months but then I think the deal with the Chinese will be ready and then it will be solved.

Midsummer is next Friday, so it seems like no cars will be produced next week, but the week after.

He also said that if Saab disappears it would also affect Volvo.

– There are dozens of suppliers that will disappear if Saab disappears. They can not continue to supply only to Volvo. It would obviously be problematic for Volvo, says Kjell Nilsson.

cmd
Member
5 years 3 months ago

What about the 9-4x production in Mexico?
Are they producing per order and as long orders come in, they continue to produce for Saab?
Or are there delays as well?
I did order a 9-4x Aero for my wife which should be delivered in September here to Switzerland, hopefully! And I also hope to see Tröllhättan producung again soon.

cmd

Bravada from GMI
Member
5 years 3 months ago

OK this is news. So Saab doesn’t have any money until the real estate transaction comes online. Does the money from the, apprently quite rushed and under unfavorable circumstances for Saab, real estate transaction cover all supplier needs, i.e. also the European suppliers refusing to deliver? Any news/analysis on that?

Will Saab finally live up to the expectations one can have of a public company and Swedish company at the same time and stop being a black box? With all my love for Saab, I wouldn’t invest in Swedish Automobile NV with the appalling levels of disclosure they have.

JH
Member
5 years 3 months ago

I believe that the NDO would prevent Saab from being underpaid for the real estate. If I recall correctly, the facilities were valued at around 960 million SEK during the reconstruction so if everything is sold the purchase price should be somewhere around there. That is over 100 million Euro and should be more than enough for Saab to pay all the suppliers.

Motoradd's Cat
Member
5 years 3 months ago

Hopefully revenue streams from the 9-4x will start to come in as well.

Mynoob
Member
5 years 3 months ago

It might be enough to pay the suppliers. Still you would need a heck of a lot of cash to run an anual deficit of 200 million € which they actually did in 2010.

100m€ would pay the suppliers.
300m€ would pay the suppliers and get you through a year.
500m€ would pay the suppliers and get you through two loss making years.
.. and then you will have to start to earn money in 2013 unless you find someone else willing to burn cash.

Lets not trivialize the financial challenges.

till72
Member
5 years 3 months ago

I also want to know as much as possible and I would like to understand the situation Saab is in now. But there are many things that don’t belong into the public because they are just between Saab and the suppliers or shareholders. While they need detailed information I guess we have to be satisfied with some base info. Too much details in public would only mean that many so called experts analyze that Saab is doomed.

MrTinkertrain
Member
5 years 3 months ago

That is what I have said before: the details are business secrets right now…

Audun
Member
5 years 3 months ago

+1

Thilo
Member
5 years 3 months ago

+1

BoeBoe
Member
5 years 3 months ago

There will not be that much revenue from the 9-4X, most of the revenue will go directly to GM.

They paid for labour, parts etc etc…

And now were are happy because some supplier “hopes” that production will restart in 1 week. Another week without production is a very long time. And they are only speculating about the property sale. They know as much as we do about that. But they do know that the start of production is at least 1 week away.

If the property deal fails Saab is f#cked

Mark
Member
5 years 3 months ago

I think you are correct about the 9-4x. There probably isn’t much revenue, but at least there isn’t any parts supply issues. All the parts for the car are sold to GM. Saab then buys completely built up cars from GM.
Correct me if I’m wrong, but I think Saab still has to pay for some development costs for the 9-4x too?

BoeBoe
Member
5 years 3 months ago

And why only tell 1 side of the TTELA story? It is a story with two guessing(!) persons, and you only tell about the positive part. If you read what Holmqvist has to say you can’t be happy…

hans h
Member
5 years 3 months ago

Semcon is a consulting company. With MANY employees working at Saab.
And has, as such, probably a good view of what’s going on.

Peter95
Member
5 years 3 months ago

So are they back at work? I heard they had withdrawn all their consultants.

Khrisdk
Member
5 years 3 months ago

The guess from the CEO of Clepta was covered in Comments yesterday.
Of course both are guessing, but it is nice to see that there are different views, and actually the guy from Clepta is mainly blaming the government

nafuente
Member
5 years 3 months ago

¿Cuándo se reanuda la producción en la fábrica de Saab? Llevo meses esperando por un Saab 93 Griffin y me gustaría tener más información.

When production resumes at the Saab factory? I’ve been waiting for months for a Saab 93 Griffin and I would like more information.

A Coruña. Spain

Beechy
Member
5 years 3 months ago

But he didn’t say which midsummer (this year, next year) !!
I have a 9-3 SE TTID on order so i am playing the waiting game at the moment, but i don’t know how much longer i can hold on. The last thing i want to do is cancel my order, I JUST WANT MY SAAB

Andrew-V
Member
5 years 3 months ago

If VM hoped for this property deal if any when he re-started Works 27th May then what’s the business? All possible extra failures should be taken account before.

Andrew-V
Member
5 years 3 months ago

Or this deal has been reserved for case of emergency?

tomas
Member
5 years 3 months ago

offtopic: Maud Olofsson resigns
http://www.expressen.se/nyheter/1.2472474/maud-olofsson-avgar (swedish)
No comment on that….;)

Nissi
Member
5 years 3 months ago
Lets take a closer look at facts about the possible buyer of SAAB facilities Hemfosa.. My analysis is: If SAAB´s facilities are valued at 960 million SEK, this small company, started as late as in 2009 probably cannot raise necessary money on its own. Hemfosa´s owners and banks must thus approve the business plans before giving new necessary loans to Hemfosa. The size of necessary loans probably needs decision quite high up in the banking decision systems. That takes time! And these decision makers at higher levels know following: Hemfosa´s key problem must be solved before they can approve any… Read more »
JH
Member
5 years 3 months ago

Hemfosa has actually bought properties for 13 BILLION SEK (around 1.4 billion EUR) since 2009 and has several strong owners backing them including Folksam, Alecta, Ikano and Sampo. Therefore I believe they can buy Saab’s real estate tomorrow if they want to.

Tripod
Member
5 years 3 months ago
Nissi, I don’t know where you get your information from, or which knowledge you have to base your analysis on; or if you simply base all the analysis on the fact that it is a rather new company. However, even if it is a fairly new player, Hemfosa has as “heavy” owners as almost possible, in Sweden; well there could be a few more of them. Around a month ago, they bought property in the middle of Sweden for aprox. close to one billion SEK, in one “swoop”. (Their “little” shopping purse at the start some years ago was something… Read more »
Khrisdk
Member
5 years 3 months ago

Nice positive analysis.
I think you may be surprised.
By the way I think that VA is thinking about starting some banking business in Sweden and has been approved for that.
Of course this is totally unrelated.

Jarkko
Member
5 years 3 months ago
How about spare parts deliveries? I have waited nearly three weeks for a new diesel particle filter. Now my car is standing stranded at the local Saab dealer in Helsinki, Finland. They cannot tell me when they get the DPF for my MY 2008 9-3 TiD 150 hp Wagon. Luckily it’s a leasing car so I have a Skoda Octavia at my disposal for the time being (nice FSI engine there…). Does anyone know if over three weeks is normal delivery time for a urgent spare part at Saab? Note that I have not been able to drive the car… Read more »
JH
Member
5 years 3 months ago

If the diesel particle filter is in stock at the Saab Spare Parts Center in Nyköping, Sweden it should not take too long for you to get it, probably less than three weeks to Finland. If it is not in stock at Saab, it depends on the part supplier, but the spare parts business should not in any way be affected by the production stoppage at Saab. Give your Saab dealer a call and ask whether the diesel particle filter is in stock in Sweden or not, they should be able to see it through their computer system.

BoeBoe
Member
5 years 3 months ago

If the supplier of the spare parts is the same supplier as the spare parts supplier there might indeed be a problem.

If they don’t deliver to the factory there is a huge chance they also don’t deliver to Saab Spare Parts.

JH
Member
5 years 3 months ago

If the supplier has gotten economic problems it might be so, but then they are not delivering to anyone else either. They should deliver to anyone who pay for the parts, and remember that Saab Automobile Parts AB is a separate, profitable business without liquidity problems. They are a subsidiary to Saab Automobile AB and yes, they do most of their work for Saab but they are also responsible for Opel and Chevrolet spare parts in northern Europe.

Tripod
Member
5 years 3 months ago

I guess BoeBoe was trying to find the negative scenario, once more.

Mynoob
Member
5 years 3 months ago

Where do you think that many parts for the production last week came from? Spare parts.

Khrisdk
Member
5 years 3 months ago

So you are actually saying that Jarkko has been waiting for his spare part for 3 weeks because they used it last friday?
Doesn’t really add up.

No 9
Member
5 years 3 months ago

I thought the parts division was not affected and thriving…

JH
Member
5 years 3 months ago

And I am very confident that you are correct. I live in the same town as the Saab Spare Parts Center which is a huge employer here and if they had problems, our local newspaper would definitely have written something about it. So in this case I believe the disruption is because of something else.

BoeBoe
Member
5 years 3 months ago

Saab will come with a statement “soon” says Victor Muller
http://www.telegraaf.nl/dft/nieuws_dft/10045138/___Snel_uitsluitsel_herstart_Saabproductie___.html

CEO Victor Muller of Swedish Automobile, formerly Spyker Cars, expected,,”soon to be conclusive about the restart of production at the Swedish car company. He said that ANP-Reuters on Friday.

JH
Member
5 years 3 months ago

I believe that Mr. Muller has learnt a lesson and would not make such a statement if there was no substance behind it. Anyhow, we just have to wait and see and hope for the best!

Mynoob
Member
5 years 3 months ago
What we’re seeing now is a mass exodus of people leaving Saab to work somewhere else. I’m in the business and see old key competences from Saab pop up att competitors and subcontractors all over. Saab people who’re actively looking for another employer has really boomed lately. I don’t think that anyone at Saab isn’t looking for another place to work right now when they can’t even be sure if they’ll receive the next pay check. It is like when Volvo cars was almost going belly up a couple of years ago. A lot of people changed to AB Volvo… Read more »
CurtInFalcon
Member
5 years 3 months ago

Saab’s issues are starting to affect the dealers too. One Saab dealer in a tradiionally strong Saab market in Colorado is closing its doors on July 1st. A second dealer in Southern Colorado has only sold two Saabs in the last three months and is thinking of dropping Saab from its line-up. This will leave only two dealers to service the entire state which is rather large. I’m very worried about the entire Saab chain from supplliers to production to dealer.

michaelb
Member
5 years 3 months ago
As written before, it is high noon for Saab. If, as highlighted by the contributions above, dealers close or get rid off the Saab brand and employees are on the leave as fast as they can, trust from key stakeholders obivously is gone. The dealer behavior coincides with my own observations. The planned announcement by VM has not just to care with a production restart, but about medium-and longer-term financing and business plan intentions and realistic steps and milestones, even other different options. Without that, on surface the operation seems to resume, while in reality foundations just continue to erode… Read more »
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