Production postponed until week 35!
July 21, 2011 in News
Update: I’ve changed the question-mark in the title to what you see. Several news sites in Sweden report on a press release from Saab (as shown in the comments by Johan) that the production start at Saab has been postponed until week 35 (at earliest from August 29th), due to the fact that Saab has to reach agreements with all suppliers delivering parts for the production. / Carl-Henrik
SvD article: Saab skjuter på produktionsstarten
Update 2: Press release from Saab after the jump!
Here is the press release from Saab: Swedish Automobile N.V. (Swan) announces that Saab Automobile AB (Saab Automobile) continues discussions with its supplier base on material supply and delivery terms in order to be able to resume production at its Trollhättan plant. Swan and Saab Automobile continue their discussions with parties to obtain further short-term funding to be able to restart and sustain production. As delivery of all parts needed to secure a production start is not yet agreed production will not resume on August 9 as intended and will be postponed until a full commitment on delivery plans can be secured.
Gunnar Brunius, Vice President of Production and Purchasing said: “I am positive about the progress we made on the payment terms with our suppliers and it is good to see that we all want to make it work. What we need now is a full commitment on supply of parts into our factory to be able to restart production and secure a stable manufacturing operation. We are now working hard with our suppliers to nail down these plans, commit to a delivery schedule and start building the close to 11,000 cars that we currently have in our order books. The industry-wide summer break at our suppliers caused certain key suppliers not to be able to supply us in time. Saab Automobile hopes to restart production earliest in week 35 provided that it is able to commit to a delivery schedule with its suppliers.”
————
A lot of indications are now pointing to that the production start will be postponed at least one week. TTELA reports that suppliers have informed their workforce that no production will start until week 33. This means that the earliest start would be on the 15th of August.
SaabsUnited have tried to reach several suppliers by phone today but they are all closed for the summer and will not return until the 15th of August.
ryanonsrc said on July 21, 2011
“closed for the summer”? This sounds to me like this is either an excuse due to some other hold-up, or the suppliers themselves are running into funding issues (hence, them staying on standby is costing them too much money). Furthermore, I would think that the suppliers would need to get busy shipping parts to SAAB well before the actual starting of production, right? If so, then I would think that we are looking at a production restart taking place towards the end of August.
This is getting really frustrating!
Mailr said on July 21, 2011
Well, business in Sweden is often totally closed down in July. This year most small shops are closed July 18:th to August 1:st most shops have closed. As swedish workers have a lawful rights to 4 weeks of continous vacation, most manufactures shut down for 4 weeks in the summer, typically this is done in July and was called the Industrial vacation in the past as all industries shut down the same weeks, but in recent years this has been more variable. So, that you can’t get hold of anybody right now is not that surprising, and no cause for alarm. It’s just how things are done here in Sweden.
ryanonsrc said on July 21, 2011
I see: me being in the US, I admit that I have less context ….
Quijote said on July 21, 2011
Europe basically doesn’t work in July/August. Even if offices are “open”, people are generally in relax mode. Its not like USA, Japan, or other industrialized territories. During the summer, I’m working hard here in Miami, FL. This compared to my relatives in Spain who are mostly off right now. Then they wonder why much of Spain has nearly 25% unemployment.
Börjesson said on July 21, 2011
I disagree. I don’t know how it is in Spain, but here in Sweden, while most people do take four or five weeks of holiday, when we work, we work. You can’t sit about idling on paid time just because it’s summer!
Bouwe said on July 21, 2011
This is sheer nonsense. In Europe, the stronger countries are very hardworking. Perhaps your relatives are teachers or also unemployed? Since this year I know the difference between the way of thinking in the US and Europe because I live there now (US). I have come across a lot of US citizens who think it is a perfect world and everything is the best, regardless of what is done. How untrue. It is very likely that you do not have clue what you are talking about. Also the conclusion out of your statements ridiculous and unfounded .
In my opinion, creating this atmosphere during discussions is very Saab-unworthy as well.
Paul said on July 21, 2011
This is quite unfortunate, I convinced my Wife to test drive the 9 4x prior to making the any decision on the Mercedes GLK or the BMW x3, I own a 9 3 2.0T. I’m located in Montreal and dealers are few.
I told her the 9 4x would arrive Mid August and that the reviews on the 9 4x are excellent..
What do I tell her now? I don’t want to alarm her with their current financial situation, otherwise she might drop the whole idea of buying a SAAB.
Arghh.. I want another SAAB in my driveway.
Rune said on July 21, 2011
Paul, the production in THN should not affect the 9-4x which is already showing up in showrooms in the US.
twirix said on July 21, 2011
Oh man, if you want your wife more than another Saab I suggest you tell her.
Henrik B. said on July 21, 2011
As the Saab 9-4X is produced in Mexico, it isn’t effected by what is going on in Sweden. So don’ worry, your wife will be able to get a 9-4X as planned.
Cheers!
ryanonsrc said on July 21, 2011
… On the other hand: I wonder if this might have something to do with the delay: http://www.thelocal.se/35050/20110720/
Yes, that may sound counter-intuitive but if the suppliers are beginning to take charge of the situation get Antanov more directly involved, there could be some negotiations that are causing this delay. I am hoping that this is indeed the case because this would mean some seriously good things are about to come out of all this …
kochje said on July 21, 2011
This is a good and interesting article.
Good to see that the unions get involved and start to put pressure on the Government, the EIB and perhaps even GM to finally conclude on the participation of Antanov.
However at the end it is again sad to see that the Swedish government is again not ready to speak up while they again only state that they approve Antanov IF the EIB and GM are in agreement.
Why don’t they just hhave the guts to say; ” We approve it and do ask hereby the EIB and GM to do the same!”
ryanonsrc said on July 21, 2011
I would certainly like to see this: I’m just not sure if they have the authority. But, who knows: I’ve been astounded how a bank (EIB) has been able to dictate what Saab can and can’t do.
Bouwe said on July 21, 2011
I think it is better to wait for a while, gather all relevant information and provide the information the SU-members… this instead of one TTELA report and some non-responded phone calls and drawing premature conclusions. I am on the critics-side now, but there seems to be a tendency of rush and panic during this period over here.
Some sort of stabilization, also in the reports, would dampen a lot of people’s adrenaline levels. It is exciting nowadays and scary sometimes, but as the owners of SU, it would be recommendable to take it easy here and there.
My excuse if I have offended you, because I know you are doing a good job in general but I read an increase in speculations lately. We should refrain from that.
ryanonsrc said on July 21, 2011
agreed. My apologies for contributing to the speculations. It’s nice to have the constant updates, I was just misinterpreting them.
TimR said on July 21, 2011
As we stated before, if we think it is relevant to post something we do it! if you do not agree please send u s an e-mail about it in the future and we can discuss the reasons there! You should respect the amount of telephone calls I made yesterday (about 30 of them) to try to find out what was going on with the suppliers!
So if we speculate on something we do it for a good reason! I think we the su-crew out of all the media have the most constraint on us since we do not want to hurt Saab, but we do have to report on things that are still relevant! Even though it is speculation I can assure you that we do our homework!
Bouwe said on July 21, 2011
Dear TimR, I do not have the slighthest clue how much background work you guys do. It’s only because of the times, where changements are so abundantly. We want to know a lot, but it also messes us up.. it’s all about the balance.. especially because the ‘general’ press is spitting out a lot of garbage too. We all want Saab to get in the right direction again. Keep up the good work!
Bruce said on July 21, 2011
I suspect that it is not the plan to ship anything before it is needed–that is the nature of just-in-time delivery and part of the technical difficulty of starting up. Even once all the suppliers are ready to roll in terms of money, start-up cannot occur until the very last of them is back from holiday, in production, and shipping on SAAB’s schedule.
Auto plants don’t stock anything anymore, to the best of my knowledge.
A tour of any available auto plant is fascinating–the arrival of trucks or rail shipments is a carefully choreographed ballet.
B
Moody Saaber said on July 21, 2011
The 9-4X is being made in Mexico. Perhaps they are harder workers than the Swedes who have very liberal social priviledges for which they pay very high taxes.
Chris Hansel said on July 21, 2011
Or perhaps they are serfs. Lets see, they get, oh $ 1.50 an hour, and if they don’t show up due to a family problem of some type, they are fired? Yes, I think you and I have different ideas about the workers paradise called Mexico. Do not worry, overseer GM will make sure the correct number of 9-4X produced as required by the contract. The Americans will keep their word. Pray for Saab,and pray for Sweden.
Chris
Khrisdk said on July 21, 2011
Oh Really
Well they are not as effective pr. hour as you would find if you compare GDP pr hour worked.
Which is really what matters
Ruben NL said on July 21, 2011
The devil’s advocate woke up in me, while reading the headline. What if………? What if production is now to resume after a new round of wages to be paid. Since the last payment, no Saabs have been built. Money was tight (if present at all) to pay suppliers, taxes, wages. Where would the money come from to pay the next wages? It really worries me.
Besides all that, I was hoping to get a chance on making a factory tour in week 32, when I’m visiting the Halland region.
twirix said on July 21, 2011
Last year the loss was 3,1 billion SEK, i.e. 258 million SEK per month in average, and of course the loss is higher when the production is stopped.
From this it’s obvious that Saab has to find a lot of new money just to be able to start production again, and money that can be used to pay salaries and the suppliers right away.
Khrisdk said on July 21, 2011
Yup..
And they probably will find the money, pay the wages on monday and still aim for the restart on 9. August.
twirix said on July 21, 2011
Not likely since the suppliers won’t start deliver by then. Instead new claims are coming in to the enforcement service. Obviously Saab has not reached agreements with the suppliers.
Khrisdk said on July 21, 2011
I said Aim for restart.
Noone knows how close Saab are to agreeements. Do you?
In my experience as a supplier (not to saab) you get in line early with your claims to have a solid legal acces if something goes wrong while negotiating.
Your main interest as a supplier is selling, so you take a calculated risk, and set up for both success and failure scenarios.
That’s just business.
And as usual Saab will pay as the suppliers deliver:
JIT
twirix said on July 21, 2011
Saab has over 800 suppliers, how positive they are to Saab of course differ. Some probably still believe they will get paid but there are surely also others who will not deliver anything more until all old debts are fully paid.
So it will be a matter of calculating how much money Saab needs to be able to pay all debts. If Saab will do that it’s also likely that some suppliers will stop doing business with Saab anyway. Either because they see Saab as a to high risk and that they have better customers to focus on or because they have gone bankrupt.
Khrisdk said on July 21, 2011
Well, the 101 claims at kronofogeden right now are from very small suppliers.
I also expect that Saab will dispute a good deal of the claims.
For the rest of the suppliers, negotiations are going on behind closed doors.
Those are the really interesting things as these are the bigger suppliers, and something which we will off course not be informed of.
You also assume that there will be a need to pay the total debts before a restart.
I doubt this.
There is one mistake going through all evaluations and analysis.
People either underestimate or overestimate the amount of money involved.
Saab is a small fish compared to other producers, so the losses for deliveries can be written off without too much consequence for the big suppliers.
At the same people are seeing the amounts mentioned as huge, when they are in fact not compared to the amounts Saab operate on.
That brings about a lot of panic
twirix said on July 21, 2011
The largest claim is for 40 MSEK and that is hardly a small supplier and many suppliers is closed now during the summer and have no contact at all with Saab.
There are also laws regarding payment of debts, Saab cannot chose which suppliers to pay and ignore others without breaking the law.
“People either underestimate or overestimate the amount of money involved.
Saab is a small fish compared to other producers, so the losses for deliveries can be written off without too much consequence for the big suppliers.”
That is a very nonchalant way of thinking and those suppliers who have Saab as a small customer can also easily terminate that relationship permanently.
Khrisdk said on July 21, 2011
This is not really a discussion of realities.
It is a discussion of our opinions and perceptions.
I am well aware that here are laws covering debts.
This is also why I expect Saab to use those laws to their full extent
40m SEK is a small supplier.
Espoecially considering you start off by telling us that Saab lost 258 mill. SEK pr. month while producing
twirix said on July 21, 2011
and now we know about 9 of August
and now a few optimistic people are hoping for the next date, 29 of August
by that time SAAB will lose another 300MSEK, at least
Carl-Henrik said on July 21, 2011
Next time to pay out wages are on this coming Monday, the 25th.
Belfast_Saab said on July 21, 2011
The early August start date always looked ambitious – production presumably can’t start meaningfully until all parts suppliers are back in production – there is some good news that some suppliers are ready to support Saab, some bad nes that others are potentially lining up to take proceedings to recoup their unpaid invoices. On balance this sounds like ti will take several weeks to sort out and relies upon cash for wages and invoices – have lost track o fhte Chinese monies but hopefully these are sufficient to cover the stoppage meantime.
Any progress on the Anatanov/EIB/SwedGov matters? This seems the safety valve to Saab funding.
TonymacUK said on July 21, 2011
I thought GM were OK with Antonov?
Nissi said on July 21, 2011
Yes … but there is a condition, first Antonov must pay GM 800 – 900 million SEK for GMs shares in SAAB. That payment, so GM is out of the picture (GM can always block everything before this payment) is what the other parties involved in SAAB, seems waiting for from Antonov.
Khrisdk said on July 21, 2011
Yes, but so far this condition has not been confirmed by other than Di.se as far as I know.
jond said on July 21, 2011
Nobody seems to have noticed the convertible element of the EUR25m bridging loan from Gemini Investment Fund Limited, announced on 29 June. The loan has six months maturity, but will be redeemed prior as and when the Chinese investment materializes. However, if the Chinese investment does not materialize, then on maturity it will be converted at a price of EUR1.38 per share. There are presently 18.48m shares issued, to which the conversion would add a further 18.12m. This means that, if the Chinese investment does not materialize, then Gemini will own at least 49.5% of the diluted equity, which is in effect control.
If Gemini is an investment fund controlled by Mr Antonov then, as I read it, if the Chinese do not come up trumps, control of Saab will pass to him. Please correct me if I have misinterpreted something.
Nissi said on July 21, 2011
First SAAB (as a company) must have GM´s approval for this, since no new SAAB shares can be issued without GM:s approval as a shareholder in SAAB. So GM can all the time block almost everything in SAAB suggests, as long as they are shareholders.
The only way (as I understand it) for SAAB to get out of this dilemma, is that somebody else buys these shares, and at the same time makes a new agreement with GM on future GM-SAAB-cooperation.
jond said on July 21, 2011
You know, this is all completely fascinating. It’s been worth the deposit on my 9-3X just to have the excitement of this roller-coaster ride! (Please don’t tell my dealer that.) Of course, I’m very sympathetic to all those for whom this is their livelihood and more than an enthusiasm.
It seems that Saab are confident that they have the liquidity necessary to cover the cash-flow deficit on restart, which has been widely flagged. Otherwise, they wouldn’t risk the loss of goodwill if they fail again (or would they?). But what is the longer term plan? Sales must now be at an all-time low point and it is not at all certain that even the successful introduction of the Chinese will lead to a swift recovery in sales. And the order backlog will not last for very long.
If Saab do not reduce their break-even point lower than potential ongoing sales, then they will continue to make losses and to require ongoing life-supporting injections of cash. I’m a little surprised that we are not hearing of a ‘restructuring’ going on. After all, Youngman seem to have substantial spare capacity that might eventually take up some slack if required.
bjornorn said on July 21, 2011
That suppliers start up a week after the 9th does not necessarily mean that it will affect a start up by SAAb on the 9th. Many suppliers would normally have some stock ready for shipment and in some cases also SAAB might have a stock, particularly as production has been so fragmented
rallyho said on July 21, 2011
I was amazed to find out how long the Euros shut down for during summer. I thought it was wonderful.
Here in the US a large factory like GE shut down for two weeks when they did plant maintenance.
Traditional US vacation just about anywhere was two weeks.
Today, small business, like my wife, a professional have cancelled all vacations as have a few of her friends. They will take a three day holiday after season when the rates are cheap, perhaps late September.
My auto mechanic took three days this past week. It seems like US vacations are a thing of the past in this economy.
And with that, I think you can write off Saab as being one of the top places to export. Our economy is that bad.
Johan said on July 21, 2011
Production will be postponed. Saab confirms this in a presse release.
SAAB AUTOMOBILE UPDATE ON PRODUCTION
Zeewolde, The Netherlands, 21 July 2011 – Swedish Automobile N.V. (Swan) announces that Saab Automobile AB (Saab Automobile) continues discussions with its supplier base on material supply and delivery terms in order to be able to resume production at its Trollhättan plant. Swan and Saab Automobile continue their discussions with parties to obtain further short-term funding to be able to restart and sustain production. As delivery of all parts needed to secure a production start is not yet agreed production will not resume on August 9 as intended and will be postponed until a full commitment on delivery plans can be secured.
Gunnar Brunius, Vice President of Production and Purchasing said: “I am positive about the progress we made on the payment terms with our suppliers and it is good to see that we all want to make it work. What we need now is a full commitment on supply of parts into our factory to be able to restart production and secure a stable manufacturing operation. We are now working hard with our suppliers to nail down these plans, commit to a delivery schedule and start building the close to 11,000 cars that we currently have in our order books. The industry-wide summer break at our suppliers caused certain key suppliers not to be able to supply us in time. Saab Automobile hopes to restart production earliest in week 35 provided that it is able to commit to a delivery schedule with its suppliers.”
Ralph said on July 21, 2011
That’s just the stubborn reality, I guess. Though it makes you question the wisdom of setting a specific date…
Börjesson said on July 21, 2011
Week 35 begins on Monday 29 August. This is even worse than rumoured.
jond said on July 21, 2011
So, they still need more short-term funding to restart and the confidence of all suppliers. Plus ca change ….. It’s hard not to draw the conclusion that only the Chinese can now save the day.
zippy said on July 21, 2011
Let’s face it, a finger won’t be lifted until all that cash comes in from China. This isn’t going to be pretty.
KarlR said on July 21, 2011
I unfortantly dont think they will ever prodice a car again.
They dont have enough money to pay the suppliers demand! 
Sorry and goodbye SAAB.
Grumpy said on July 21, 2011
Well I wouldn’t see it quite so bleakly. Sure it is difficult and the rather surprising fact that Summer and summer vacations came also this year, but to say the last car has been built is taking it a step too far.
Saab UP!
Tim said on July 21, 2011
Did you really think Saab would be able to start building cars just a day after the summer holiday has ended? Suppliers (Swedish and foreign) need some time to start their production lines, produce and ship the goods. In some cases that might take a day, in some cases it might take days or weeks. Especially when suppliers are dependent on their own suppliers.
Although week 35 is again 3 weeks later I’m still possitive I will receive my new car.
jouni72 said on July 21, 2011
I´m also very positive that I will get my new 9-5 SC. We really don´t know what is happening behind the curtains and we can speculate different things but in my understanding suppliers representatives are moving to the same side as Saab, asking why on earth Antonov can´t come in as an owner and investor. I think it is a good sign. Let´s stay positive, things will be solved. Of course it is frustrating to wait…
KarlR said on July 21, 2011
Grumpy, Sorry I should correct myself and say last Swedish made SAAB is already made!
Grumpy said on July 21, 2011
Oh okay, but still, I believe production will start again, even in Sweden. Even if the Chinese buys the factory theystill need production and development in Sweden. Buying Saab for a few tools to make a similarly named car in China makes little or no sense.
Perhaps what VM should consider is cutting his losses, well profits more likely, and sell the whole shebang to the highest bidder rather than fiddling with change for parts of the company month after month. VM was the white knight, now he looks more like blackadder, sorry.
Olav said on July 21, 2011
Where else should SAAB be built then? The factory and most of the major suppliers are in Sweden, and there are no money to move this ‘thing’.
.
The most important issue for SAAB’s survival is to asap start to produce cars and bring them out to the dealers. If they don’t succeed with that in a reasonable time………………. I don’t want to think that thought!
I admit that I fear the worst myself from time to time, but let’s stay calm and carry on
SAAB UP!
KarlR said on July 21, 2011
Tim, I hope I will be wrong but I dont think so! They and alot of other people just making new excuses!
DUTCH900C said on July 21, 2011
I just read that the production wil start in the 35th week, the week that begins on monday august the 29th.
I read it on: http://www.rtl.nl/components/financien/rtlz/nieuws/2011/29/productie-saab-opnieuw-uitgesteld.xml and yes, i know, that is dutch, but the most important thing to translate is the number of the week and the date.
DUTCH900C said on July 21, 2011
And just when i posted my last comment i saw that it already is “old news”.
Jasper said on July 21, 2011
Nobody really knows when production will start.
The matrix of players and possibilities is to large to project a date.
What I do know is that at some point it will start.
Carlo A said on July 21, 2011
how can you be so confident? sigh!
Tripod said on July 21, 2011
Well, it seemed like that in the some articles I read yesterday noon, afternoon, about the invitation of VA to the supplier meeting held by FKG. Gustavs didn’t seem confident about the earlier mentioned date; mentioned that they needed agreements with all suppliers, and that that had proven to be a bit more difficult.
Now, after seeing this at SU, and trying to locate the articles (DN, SvD, ttela etc.) I of course find that the old ones have been updated (it is Internet after all), if I use the old links, talking about possible delayed start. But I think one could see that, read it between the lines, in the original articles, though I didn’t mention it here. So, the articles shifted focus, and anyhow the meeting seems to be in September, and there are a lot of things happening before that.
Ah, DN has not updated their article about the invitation, so one can still read the original article with her comments at the end.
http://www.dn.se/ekonomi/underleverantorer-bjuder-in-antonov
However, TTELA changed their.
Anyhow, they have now mentioned it.
Börjesson said on July 21, 2011
GP.se has additional details that the other sites haven’t picked up on yet.
Börjesson said on July 21, 2011
On the upside, anyone thinking about investing in SWAN stock can probably get a very good price tomorrow morning.
Carl-Henrik said on July 21, 2011
I’ve just added the press release that ValS uploaded into another post, just to focus the comments. Some comments were lost, sorry for that.
Börjesson said on July 21, 2011
Good work, C-H!
GerritN said on July 21, 2011
Well, the people who spent time writing those comments are even more sorry that they wasted their time. I wish SU would stop removing comment sections, it’s very confusing and annoying.
Börjesson said on July 21, 2011
I suggested it (in a now vanished comment), so I’ll take the blame. Mea culpa! I still think it was a very good idea to avoid having two parallel discussions about the same news; but in hindsight, maybe it would have been better to leave the other post but disable new comments to it.
Troels, Denmark said on July 21, 2011
Agree!
Troels, Denmark said on July 21, 2011
- with GerritN – I meant.
Carl-Henrik said on July 21, 2011
And I totally understand you, that is why I just moved those comments to this one (the only way doing that is through copy/paste-version) and it took me some time to edit it so it look good in a way.
Carl-Henrik said on July 21, 2011
Yes I know it is confusing, but we are many in the team and sometimes we don’t have time to post it. I was out of work having a game of tennis, and ValS network at the office was a bit unstable for a moment, so he had sent a mail about us fixing it. And as Börjesson wrote, he mentioned it in a comment.
And I am working on the comments to post them here. They are not lost totally. Give me a few minutes. I’m trying to survive by eating some sort of food as well now.. (I’m not yet a robot that doesn’t need energy..)
And yes, your post is coming as well!
Carl-Henrik said on July 21, 2011
Done! Your comments are here below now. It is not possible to move a comment to another post in WordPress, so I had to copy/paste them into this one under my name. I hope this is OK with you!
GerritN said on July 21, 2011
Dear Carl_Hendrik,
Thanks very much for all the extra work, it is very much appreciated. I apologize if my comment was a bit too grumpy. I owe you a beer or whatever your preferred poison is.
Carl-Henrik said on July 21, 2011
Comments on the post (“Saab Automobile update on production”) that was merged with this one earlier:
kochje July 21, 2011 at 16:54
Gunnar Brunius makes a right statement; as long as not all suppliers are committed so that all parts will be delivered on time to start production; one can better wait till that momentum is achieved.
However also the financial situation must be sound so that production should never been stopped anymore because of inability to pay the suppliers.
For that reason again; why is the Swedish government not saying loud; We accept Antanov as an investor in SWAN. And even better; the Swedish government should stand behind this idea and contact EIB and GM to discuss this with them.
Why are they waiting till nothing happens…….?
—————-
StefanH STHLM July 21, 2011 at 17:11
Even if we are worried that the scares money Saab has gotten the last months, shall cover all costs, Saab has confidence enough to email http://saabi.saab.com/b.aspx?l=12FB9322-3415-4293-8632-57A8F357B8AF&r=27570&rcrc=8B44F757 to swedish customers.
Reply by TimR July 21, 2011 at 17:40
They need to work on parallel levels all the time. The marketing and sales guys must assume that production will restart and trust in the guys working on that matter. Saab is divided up into teams and the only way to get the whole company to function is that they all work individually towards a common goal and assume that the other teams are as well!
Reply by SaabMan July 21, 2011 at 18:28
US customers got the same email (in English). It’s not much in the way of marketing, but I suppose it’s something.
—————-
Börjesson July 21, 2011 at 17:39
Maybe you could update the previous post with Brunius’ statement, and remove this one? Discussions tend to get fragmented and confused when split into two threads…
—————-
Ingister July 21, 2011 at 17:45
Hmmmm, I´m just waiting for a final approvement from the company to order a 9-5 SC…
This are very bad news…
Reply by Troels, Denmark July 21, 2011 at 17:52
No – do not take it as bad news! I think it is just an adjustment to realities after the holidays.
Hope your company will confirm the order for a 9-5 SC.
—————-
davidgmills July 21, 2011 at 17:50
As I posted in a previous thread, there is no way to put lipstick on this pig.
With each passing day without production, Saab’s survival becomes more and more tenuous.
Except for a couple of weeks of production, to satisfy the Chinese, we have had no production since April 1 and it appears now there will be none before September.
We always hear that resuming production is just days away. And then we learn there is a snag.
I am truly saddened by this because I now think the odds of Saab’s survival are less than 50/50. Just my opinion, and I hope I am wrong, but unless there is a huge infusion of cash from somewhere really quickly, I just think the odds are not good.
One also never knows the motives of potential investors at this point. Many have incentives to let Saab come as close as possible to failure because that means that Saab, or a controlling interest, can be bought for less. Right now I think we have too many potential future owners of Saab and the remaining interested investors may be trying to shake some others out of the picture.
Reply by jond July 21, 2011 at 18:19
Unfortunately, the couple of weeks of production seems to have drained the parts suppliers of products, which is not a good thing to maintain confidence, as was pointed out in a post yesterday.
Also, this may seem paradoxical, but the delay in production restart may be a defence mechanism on behalf of the existing owners (please bear with me on this one). We know that restart will involve a heavy immediate negative cash flow and it seems quite likely that some suppliers may be reluctant to resume supplies until long-term capital is in place. So it is quite likely that the company will be able to survive longer if, rather than using its liquidity to restart, it uses it to survive by just paying the wages until long-term capital (Chinese or Russian) is in place. An early restart that cannot be sustained may use up all the liquidity and lead to another unnecessary cash-flow crisis.
Sometimes you may survive longer by treading water and awaiting rescue rather than striking out bravely for the shore.
REPLY by ViggenJetsMan July 21, 2011 at 18:21
@davidgmills,
sadly, I agree with you, particularly the reference to outside interests. Saab is an excellent-to-near outstanding company/brand which is in dire financial straits, and is like a lamb being shorn for the wolves to feast upon.
I have this strong notion that some decision maker or makers in Swedish govnt have been “convinced” through “incentives” to stall this at key junctures, ie: Antonov approval, denial/dragging of additional private investors. Enough stalling at each point where money had to flow in order to keep the production going, and with our beloved brand not having fluidity, it’s literally been at the mercy of these players.
—————-
GerritN July 21, 2011 at 18:07
Bad, bad, however you’d like to spin this.
I agree with David, only a large cash infusion will generate enough outside confidence and a chance to start churning out cars at a high pace.
The problem in the US is mainly that Saab is slipping into oblivion, the only way to fix this is to get as many Saabs on the road as possible, even if that means an initial loss per car. Don’t fool yourselves in thinking that most people will now buy a Saab because it is a Saab, those days are long gone. The Saab halo has to be build up from scratch again.
—————-
terry9000k said on July 21, 2011
Re; Swan and Saab Automobile continue their discussions with parties to obtain further short-term funding to be able to restart and sustain production
Honestly, this is ridiculas.
This is becoming a great big cash cow.
I respect Saab & probably understand they are doing all possible, but these supply problems should have been sorted by now…..weeks ago..
There is a pay day coming up @ end of July & another one next Month th e (new) BEFORE Production start dare.
Looks like the SU staff fund is back in play, (Hope there lots of Money left in it), as with the100m Krona debt collections & the need for ‘more’ money, this is just gobbling up every Euro in sight….
Sorry Saab, you need to do more than this to keep, this ball rolling..!!
Börjesson said on July 21, 2011
“I can promise to one hundred percent that wages will be paid next week.”
- Eric Geers (GP.se)
terry9000k said on July 21, 2011
.
Yep…OK, but it also says “Where the money comes from is not important”… which is a rather frightening comment.
I suppose the same source will pay in August…
jond said on July 21, 2011
I think ‘cash sink’ rather than ‘cash cow’. Or perhaps cash black-hole would be better?
terry9000k said on July 21, 2011
Same meaning around the world, just a different way of saying it.r
Frank Wulfers said on July 21, 2011
Wasn’t the last time they made cars sometime in April? I really don’t understand they survived this long and sit idle for another 5 weeks. I guess as long as all the workers of Saab and suppliers are enjoying their summer vacation, it’s all good. If my job and favorite company was on the line, i would be working 7 days a week, 12 hours a day to get things running again. But maybe that’s just me. Perhaps Saab can source their parts in China in the future?
Carl-Henrik said on July 21, 2011
There are people at Saab working like that to get this going. Do not believe anything else.
The “problem” with modern car production is that companies don’t want to pay for something and have it delivered 4 months before they are going to use that part. That is why there is this delay as they don’t have been able to settle with all suppliers yet. Then it is in a way very bad to start up production because then you might miss some parts and then have to stop it again. Better to sort it out.
On a personal level I never care about the date, I’ve never done that. All for me is focus to get it going. If that is tomorrow or in two weeks or on this and that date is not important. As long as they get going.. then I’m happy. But of course I woulde be more pleased if they started production sooner than later.
terry9000k said on July 21, 2011
What about all the deliver date promises that were made only a week or so ago (in previous post).
Saab, when issuing them, must have known this was about to happen.
If I remember correctly, some of those dates were in Early September, which, is optimistic to say the least.
Building up peoples hopes & then shattering them again (shortly afterwards) is the sure fire way of annoying buyers & getting them to cancel the order…Way to go Saab..
Carl-Henrik said on July 21, 2011
Ok – I will now close the possibility to comment on this, because I feel that the comments are not so constructive. If you want to discuss this topic more – please use the forum. And yes, you have all right to get angry with me for doing this, but I don’t see the point here that we just keep complaining in the comments. And yes, we are a Saab community here, but instead of getting upset and ventilate it here in comments we can count to 10 and take a deep breath and realise that this is the situation right now.
The link to the forum-discussion is: http://www.saabsunited.com/su-forum?mingleforumaction=viewtopic&t=107.0
One thing is for sure – Saab is working to get all this solved. Until then, there is not so much we can do with this.
If you don’t approve with me closing this post for comments, do send us an e-mail.
/Carl-Henrik