Automotive News: Steady drip of bad news…
August 22, 2011 in News
From Automotive News (original article here):
Starved of product, parts and showroom traffic, some beleaguered U.S. dealers are planning for life after Saab.
Saab auto production has been halted since March when unpaid suppliers stopped delivering parts in Trollhattan, Sweden. Saab has not paid production workers since then. Last week the Swedish government initiated collection proceedings against the automaker at the request of several suppliers.
Swedish Automobile CEO Victor Muller urged dealers to keep faith and said he is close to securing bridge funding that will tide Saab over until mid-October. That’s when a promised 245 million euro ($352 million) payment is scheduled to arrive from Chinese auto distributor Pang Da Automobile Trade Co., he said. He said the money will restart production.
“I am working day and night to get this done,” Muller told Automotive News on Friday. “I am very confident I will be able to pull it off, but we don’t need anyone to throw in the towel now.”
But a major Saab-exclusive dealer who has sold just one unit since June 1 said he is negotiating with other manufacturers to replace Saab in his dealership.
“I’d like to sell my Saab franchise, but it has almost no value right now,” said the dealer, who asked not to be identified. “To go from a top 10 dealer to crickets in the showroom — it’s a sign.”
And Lynn Thompson, a Springfield. Mo., dealer who sells Saabs, Cadillacs, Buicks and GMCs, is having trouble selling his three remaining Saabs in stock. The two 2011 9-5s and a 2010 9-3 convertible on his lot get little traffic, and prospects who do take an interest are skittish about warranties and parts availability.
It has been tumultuous since General Motors sold the Swedish automaker to tiny Dutch exotic carmaker Spyker Cars in February 2010. In May, after a handful of failed attempts to obtain emergency funding, Spyker reached agreement for China’s Pang Da to take a stake in the company and provide funding to restart production. Spyker later changed its name to Swedish Automobile NV.
Saab Cars North America President Timothy Colbeck said he is in frequent contact with U.S. dealers. “We remain confident in our future,” he said.
Sales dry up
But dealers are worried about deliveries, parts, floorplan financing and the steady drip of bad news. Saab sold 32,711 units in the United States as recently as 2007, but that fell to 5,445 in 2010. Saab sold 3,855 units in the first seven months this year but sold only 384 in July and started August with 3,600 vehicles in stock, a 242-day supply.
“They need to get production restarted and stop the blood bath on perception,” said A.J. Murphy, general manager of Just Saab Cincinnati, who said his only buyers are Saab loyalists or those unaware of the situation.
From pre-recession annual sales of up to 160 Saabs, his store sold 60 in 2009, 78 in 2010 and 52 through mid-August this year. But the Just Saab group closed its Fairfield, Ohio, Saab store in 2009, and Dayton Just Saab has struggled since GM closed the nearby Moraine plant; 80 percent of that store’s volume consisted of GM employees buying Saabs on employee discounts.
The crisis has blunted the U.S. launch of Saab’s new 9-4X crossover, an all-wheel-drive derivative of the Cadillac SRX. GM built 457 units of the 2011 9-4X between February and July in Ramos Arizpe, Mexico, before shutting down for model year changeover. The 2012 9-4X is on GM’s production schedule for a mid-September start.
Saab sold 17 9-4Xs in July and 21 through the first half of August.
“We should have a lot more interest in the 9-4X, but we don’t because of what’s happening,” said Paul Ferguson, sales manager at VOB Auto Sales in Rockville, Md., which sells BMWs and Saabs.
2-year supply
Garry Small, owner of Garry Small Saab in Portland, Ore., has sold 15 new Saabs this year — but none since June. He has 14 in stock at his Saab-exclusive store.
“Sales have been absolutely flat,” he said. “At this rate of sales, we’ve got a two-year supply, you might say.”
Like other Saab dealers, Small has boosted used-car volume and relies more heavily on service operations.
“There’s no problem with parts and service,” he said. “That’s what’s keeping the doors open.”
Dealers said parts availability is spotty. Ferguson said some parts are delivered within 10 days, but many parts are on back order and his dealership is sourcing those “not directly from the manufacturer.” Another dealer has been out of key fobs for months. Last year, Thompson waited 187 days for a 9-7X replacement hood.
8 dropouts
But even while relying on used cars and service departments, dealers must adjust staffing to reflect low new-unit sales.
One dealer has transferred some employees to other non-Saab stores even while more than doubling used-car volume at his Saab dealership.
“Thank goodness for used,” he said. But he worries about sustaining business. “My gut is telling me at this point, there’s no going back.”
Colbeck said only eight of 204 U.S. Saab dealers have dropped out since March.
CEO Muller said he is working to keep dealers and suppliers updated.
Referring to the new 9-4X and upcoming redesigned 9-5, he said: “It would be a waste not to reap the rewards of the plans we have put in place.”
Read more: http://www.autonews.com/apps/pbcs.dll/article?AID=/20110822/RETAIL07/308229957/1265#ixzz1Vkk9E67H
mange1975 said on August 22, 2011
And some good SWE http://www.affarsvarlden.se/hem/nyheter/article3237206.ece
ENGGoogle transl. http://translate.google.com/translate?hl=en&sl=sv&tl=en&u=http%3A%2F%2Fwww.affarsvarlden.se%2Fhem%2Fnyheter%2Farticle3237206.ece
Troels, Denmark said on August 22, 2011
Almost unbearable reading…
MarkS said on August 22, 2011
Why post this????
kevinl said on August 22, 2011
Because it’s relevant and important information. Good or bad we should have the whole picture and know what is going on. We shouldn’t just be seeing things through rose colored glasses.
Pedro said on August 22, 2011
+1
David said on August 22, 2011
+1
ANA said on August 22, 2011
+1
Pedro said on August 22, 2011
Why not post this?
gunner712004 said on August 22, 2011
Quite right, we seriously need to think about what is being posted here, we blame the press for
the negative spin, what we need is sensible non sensational stories that give a balanced view
Khrisdk said on August 22, 2011
This is not really negative spin.
This is info on the US situation and what some dealers are thinking
I don’t see the sensationalism.
Pedro said on August 22, 2011
Agreed! It shows that the SU team has red hat some of us wrote and is making an honest effort to provide us with the information that is being reported about SAAB’s situation, whether good or bad.
Khrisdk said on August 22, 2011
I don’t think that they have ever done anything else.
There has always been reports like this.
SPG900NY said on August 23, 2011
Seems to me this is all relevant, not sensationalized, and presents a real picture of what’s going on around the country. I think it was important to post it. Let’s not gloss over the facts. We have enough cheerleading here to balance it out if you think it’s “negative.”
sgns said on August 23, 2011
It takes quite some knowledge to be cheerful too. So since nobody can know the situation everywhere, I think it is good that the text is taken up so it can be discussed, even if it contains mistakes.
When there’s been ‘bad news’, it’s easy to assume whatever news source is correct, instinctively. Here many of us know better than to take what is reported as truth at first blush.
gawdlpus said on August 22, 2011
Oh Why Oh Why ….post real facts and opinions of those who are unbiased. This is getting sad now!
Head in sand is better?
Hogge said on August 22, 2011
Considering how media both seem to dig up crap about Saab with or without SU (and pure fantasies if they can’t find anything else), but not posting any good news, I’d say: YES.
Put a lid on it and give them nothing to write about. Then, when Saab resume production, and produce the 11 000 ordered cars within a period of a few months, the only thing they’ll be able to write is “Saab has broken even/made a small profit this month”.
LG Aero said on August 22, 2011
It is always darkest before the dawn. A new day is coming and we all need to support the efforts being made to bring Saab into the light of that day.
Swade , please relay to Victor and the others that are working with him that we are behind them 110%!!
kochje said on August 22, 2011
+1
ANA said on August 22, 2011
Actually I see this as as partly positive. VM has stated he is close to securing funds.
If he secures a bridging loan, settles all suppliers debts in full, restarts production and gets the parts supply chain moving then, in time, Saab can make up this lost ground.
GrumpyGriffin said on August 22, 2011
Oh and Pigs Might Fly!
Red J said on August 22, 2011
If a beluga can fly, pigs should also achieve it!
Hans H said on August 22, 2011
Of course pigs can fly. See example:
pig
Audun said on August 22, 2011
+1
JST1981 said on August 22, 2011
VM seems to be always kinda close to something, but as the article states: secure re-start of production, bring in Chinese money, secure the dealer network and rebuild confidence with the customers. That’s a hell of an agenda!
kochje said on August 22, 2011
So what? someone must still keep the vision and others could de directed to help with the work. This is normal thuinking in companies, Victor up.
sgns said on August 23, 2011
If it was not a hell of an agenda (what else from a hell of a company!) it might be a boring car company, maybe even vaguely profitable, but whistling by the graveyard, for lack of positive vision. This may be much much better! The NG 9-3 may not be regular GM-fare, either
Hogge said on August 22, 2011
The thing that really ticks me off is: MID OCTOBER?
He needs to have production up and running IMMEDIATELY.
Also this article states that Saab are about to launch a redesigned 9-5. Are they referring to the 9-5 SC? Or have Saab already made a facelift?
Pedro said on August 22, 2011
No clue, but I seriously doubt that a company that has payments to suppliers issues can shell out quite a few millions in tooling for a redesign… Could be either an error, or an interior / modest exterior update such as new bumpers…
SPG900NY said on August 23, 2011
That was my first thought — that this big batch of funding that’s coming in is enough to last until mid-October. Um, it’s almost September already. With sales non-existent, Saab will need enough investors to keep it solvent for a good two years as it hones its marketing message, pays wages and suppliers, and builds cars. It’s going to take a good two years of solid production and renewed marketing to get even loyal Saab enthusiasts like myself to feel good enough about the company’s future to risk spending $30-50K on a car. Concerns about parts, warranties, etc. are very valid.
KarlR said on August 22, 2011
I almost start crying when I see this! I wonder how it will be possible to change downwards spiral! Will take many years and billions of sek to restore SAAB again!! As I see it the only way is to sell to a bigger company and fire VM. His name togheter with SAAB is just gone a joke for the regular person.
kochje said on August 22, 2011
unfair comment to the work this man has done.
Hans H said on August 22, 2011
+1
Peter Gilbert said on August 22, 2011
All throughout the Convention this weekend I was sharing with everyone on how we no must now strive to get our SAAB’ reputation back.
Non-Saab hotel guests were approaching me, with enthusiasm to ask questions and I invited them to look at the new 9-5 and 9-4X in the lot. We must talk all the time like this.
We have our work cut out for us but I am in for the struggle.
Troels, Denmark said on August 22, 2011
I like your spirit – and agree!
JH said on August 22, 2011
Almost EVERYTHING in that paragraph is WRONG!!!
RadioMan said on August 22, 2011
Wrong!! Saab has paid all their employees, including production workers all along until this day. In fact, Saab has taken a lot of beating for doing so. When Volvo a copule of years ago were in a similar pickle as Saab is now, Volvo did not pay salaries for some of their staff. Instead, the tax payers took over this, as stipulated by Swedish law. Also, the Swedish government has nothing at all to do with the operation of the Emforcement Agency. it is an independent agency that must not take any orders from the Government, as stipulated by the Swedish Constituiton, Besiides, the agency got the money.
ante said on August 22, 2011
When did Volvo let the taxpayers pay the wages? In Sweden the county administrative board payes wages for companies that go into bankruptcy and then stand first in line to receive them from the bankruptcy settlement. When were Volvo in such dire straits?
RadioMan said on August 23, 2011
About two years ago Volvo Cars laid off around 1000 people. Also, the county administrative board get their money from the tax payers.
RadioMan said on August 23, 2011
I checked this and found that it was three years ago that 1200 Volvo Cars employees at the Gothenburg and Olofström plants were fired as a result of the financial crisis. At the same time the contracts with 500 consultants were cancelled. The unemplyment benefits are mostly paird with tax payers’ money. A small part is financed by fees paid monthly by the employees.
Grumpy said on August 22, 2011
Heck, I’m happy if they don’t mix up Sweden with Switzerland
Red J said on August 22, 2011
You know Grumpy, if you travel to the country in the south of Germany you may find a kangaroo.
But only in the Zoo in Vienna.
JST1981 said on August 23, 2011
just for the record….Vienna is the capital of Austria
Being a native Southern German (Bavarian) it’s not really polite to call us Austrians 
Ralph said on August 22, 2011
I really don’t understand why SU doesn’t inform the reader of that wrongness !
Why leave it up to the reader to scroll down in the comments to find out? And even if they do, readers will naturally value SU comments less than SU articles when it comes down to reliability/correctness. Please do something about this. It can damage Saab’s image if you don’t.
rscott said on August 22, 2011
There are definitely major issues with the parts supply network. The service manager at my local dealer (in the UK) reckons he’s spending over half his time trying to locate spares to keep customers cars on the road.
As an example, I needed a new rear light for my 9-3 SportWagon, but there are none available. Instead, I had parts he’d ‘sourced’ outside the network.
MariusGTV said on August 22, 2011
I can see why some might question the posting of this but it is very important that we get the bad news as well as the good as it will make the good news all the sweeter when it starts to come in.
That aside, I do wish reporters, both European and otherwise, would stop churning out complete rubbish!. As JH rightly states, the paragraph about Saab not paying their production staff is complete rot! For f*%$ sake, please check your facts before you start spouting what amounts to a load of BS! Either that or checkk out Inside Saab with Swade and get the facts right!
Sorry for my colourful language,but this kind of thing really annoys me!
Griffin Up! Cuore Sportivo!
fuzzi said on August 22, 2011
Anyway, without the cooperation of a strong automobile manufacturer, and not a sales agent, Saab can survive
JST1981 said on August 22, 2011
From a dealer point of view I can tell you that my only source of information is SU. We don’t get any info from Sweden at all. I acknowledge the struggle of VM but in order to keep dealers on track he should re-think his information policy.
Cerulean said on August 22, 2011
+1 (UK dealer)
LarsG said on August 22, 2011
Many Saab owners and prospective Saab consumer is worried over that it advices uncertainty around spare part’s maintenance. Saab should most direct clarify that it will not last some deficiency on spare parts irrespective of what as hands with Saab. If I do remember it correct Saab clarified this in connection with that GM would shut down Saab.
RadioMan said on August 22, 2011
Provision of spare parts and other after-market matters are not handled by the Saab Automobile AB company in Trollhättan, but by the Saab Automobile Parts AB company in Nyköping, on the east coast of Sweden. The latter company has no financial problems.
Grumpy said on August 22, 2011
Yes but still the suppliers refuse to deliver, making their deliveries dependant on the payments from Saab Automobile.
Obviously they are ‘worried’ that the parts company will source the factory with parts. What they don’t realize is that they are taking away business for Saab and themselves and making it very difficult to be a Saab customer. Or even worse, they do realize and don’t care.
If a supplier is planning to resume production for the Saab plant then they can start already now to produce spare parts for the Aftersales business. This will help the supplier getting his volume up and help Saab customers that can’t drive their cars.
It is a dangerous game!
ANA said on August 22, 2011
RadioMan
Very naive to infer that Saab Parts is unaffected
Yes it is a separate company however it has been raped of parts by Saab Automobile and suppliers are presumably refusing to restock. So if they can not sell parts then they do have a financial problem.
SPG900NY said on August 23, 2011
If they are not connected, then why is there a long list of 9-5 parts that are on indefinite backorder? If the company can’t deliver parts to current customers, how are buyers of new Saabs supposed to feel comfortable that their cars will still be on the road in two years?
SAABNUT said on August 22, 2011
Well – this just about should kill the opinion that the S U crew only publish information that in one way or another only supports SAAB or neglect the gruesome news that keep pouring in.
It must be dire times indeed for the dealers and their owners/employees.
And sure enought SAAB cannot survive selling cars to SAAB nuts/enthusiasts or buyers not being aware of ther financial predicament!
Especially troublesome is the news regarding availability of spare parts and support for warranty work / repairs.
Reading about SAABs problems is bad enough, even worse would be to get your SAAB stranded due to lack of parts and warranty work.
This will spread havoc among potential customers and owners.
If I recall correct GM built SAAS:s should fall unbder the GM umbrella of warranty and after market support, while SAABS produced under the independence entity obviously is now bogged down in the financial
Offcourse if no or some spare parts are unavailable due to the conflict between Swedish Auotomobile /SAAB and the suppliers this will affect the cars sold under GM management aswell.
Anyone that can bring an update about this situation?
Really sad to hear and read, as logical as it is, about the difficulties and effects to SAAB:s crucial dealer network.
The present downturn in the world economy and the western world sure doesnt make consumer confidence any good aswell!
“The Deal” cannot be settled soon enough!
jond said on August 22, 2011
I’m sorry, but the English translation is a bit unclear. Did VM mean (i) that he thinks that he’s close to getting bridging finance that will permit a restart of production, or (ii) that the bridging finance will tide the company over until October, when he expects to get the Chinese money that will then permit a restart of production (in October)?
E said on August 22, 2011
I read it to mean he thinks he’s close to getting bridge financing that will permit a restart of production that will keep the company afloat until the Chinese money arrives in October.
Of course, from that I also infer that production will not restart until that bridge financing arrives, which of course means 29 Aug is out (which of course I understand was a “no earlier than” date to begin with).
KarlR said on August 22, 2011
Grumpy, This is something that I think SU could dig in to. Check with suppliers why they dont deliver spare parts!
SAAB-CAAB said on August 22, 2011
euhm, because they do not get paid maybe??
Swade said on August 22, 2011
I had an email from a guy in France just yesterday. His new 9-5 was hit in the rear in Paris. He has a long list of parts that his dealer cannot get despite the fact that (presumably) his insurance company will be paying in full for the repair.
Ask yourself – what’s the last remaining piece of leverage these suppliers have got?
Parts supply will remain sparse until Saab’s fate is decided. Either way, whether it be a solution or a dissolution of the company, parts flow will start again once there’s nothing for them to gain by withholding them.
Grumpy said on August 22, 2011
Yes, this is extremely important. In the mean time Saabs constantly look like the bad guys. Perhaps there are some really good reasons but a customer that pays cannot normally be refused delivery not even one called Saab.
zippy said on August 22, 2011
Correct me if I am wrong but this situation has been going on for a long time. Dont you think that Saab would have gone under by now given the situation? There must be some flicker of hope that is keeping Saab afloat and thats why we are still here. Suppliers realise that their businesses are also at risk if Saab goes under and are negotiating with Saab to ensure that they still have business dealings with a company that has new products in the pipeline.
I have to admit that I always thought that things would be fine and dandy at Saab starting a few months after VM bought Saab but Swade did tell us that thing would be rocky for a few years. A fact that I, and apparently a lot of people, chose to forget.
There is quite obviously something going on that is going to save us but I sure hope that Saab can get back to building cars before Joe Public gives up. I’d love to be able to afford a new Saab but I still have the last payment to pay on my current car then I am loan free.
As painful as it is to watch Saab suffer I am of the belief that it will survive but it is going to take a lot of marketing to tell people that Saab is building its best ever range of cars. Saab marketing needs to get to work and I do feel we have a good guy in North America in Tim Collbeck.
Lets keep the faith
Hans H said on August 22, 2011
I agree with everything you wrote.
sgns said on August 22, 2011
I’m not particularly negative about Saab’s chances to thrive after this is over, fwiw. Yes, we Saab faithful – and the Scandinavians
– will want to be convinced that everything is good, and it’s going to take a bit of convincing. But once Saab operations again are mostly about other things than deals and things that tend to be done in relative secrecy, great transparency, passion and the simple fact that things are working again will win over most of those that need to be won (which is far from a majority – that would be a very boring car indeed. There’s always a path to even world domination without catering to the lowest common denominator – it may be the ONLY good path leading there).
And most of the other 7 billions on the planet never even heard of Saab, let alone its troubles, so they can still discover it for the first time. This is actually the underhanded upside to that the NG 9-5 hasn’t been promoted to the moon and back, for example in North America. It would just have made them a bigger target in the media in NA, and created a perception of even more volatility. Of course the latest problems MAY never have hit in that case. But it may have been very difficult to fund more publicity. One can only see perfectly backward but has to move forward – leaving the things one can see perfectly behind
hilmar said on August 22, 2011
No problem. I´ll keep the faith with this flicker of hope.
Got some spare parts from GM/Opel meanwhile. Why not sell Saab cars directly from Trollhättan via Internet interim ? Silly idea ? 
Pedro said on August 22, 2011
And what cars can SAAB sell if they are not producing any? =/
Khrisdk said on August 22, 2011
The same cars that most other european autoproducers are selling:
The ones to be built.
Pedro said on August 22, 2011
I see…
Khrisdk said on August 22, 2011
I’m not too serious and not really expecting 80.000+ cars on that account, but there is some truth in it.
Most of the car bought in europe are built to order.
Pedro said on August 22, 2011
I know they are, apologies for my sarcasm, Khrisdk. The issue is that building to order whan the factory is running smoothly is one thing (you adjust the number of cars built, maybe even a shift more or less as needed, but things proceed fairly normally). But Trollhättan is basically stopped and this story is dragging on and on and on…
Khrisdk said on August 22, 2011
I know
I just felt like mentioning it.
Apart from the money problems and supplier problems the factory could start producing tomorrow to order and fullfill those. Probably also quicker than some other manufacturers
Pedro said on August 22, 2011
Unfortunately, the problems are precisely the money and suppliers… Actually money and suppliers are just a single mess becasue without money you can’t pay what is already due, and then you’ll need more money because those suppliers won’t likely trust SAAB or SWAN for a long time and will be demanding either some advance payments or cash on delivery for a lot of time until trust is regained. And in an industrial business, where there is a production cycle to finance, that can represent a lot of money in extra financing needs when compared to a standard of 60 or 90 days payment to suppliers.
But I think that there is a logistics issue too: even if the parts inventory is 1 or 2 days of consumption at the SAAB factory there is still the issue of the suppliers themselves ramping up their production as they probably have allocated their people to whatever they can do that earns those suppliers money.
hilmar said on August 22, 2011
I am confident they will produce cars. These are particular times so perhaps one should not think in a common way to develop a solution. Brain storming ? Just to gather ideas ?
wfg said on August 22, 2011
Honestly, it appears to me that saving SAAB will need more money than VM simply can raise. It’s a fact but not necessarily bad. We all should appreciate VM’s efforts to collect the money, but in reality SAAB’s survival simply depends on CONSTANT money flow. Does one remember the times when everyone argued on Land Rover, Jaguar, Lotus, Alfa Romeo or even Volvo? Do you remember the comments that the people knew that the motorbike company Triumph is history? And now, look into the market…what had changed? Money, a constant flow of money but not some small amounts, too less to survive and just prolonging an apoptotic struggling to death. I know I repeat myself but that’s how I think/dream: Saab should be overtaken by Magna. Magna has enough money to slowly pull Saab out of its devastating situation and to build it up to the car producer most (but obviously not all) of the people here like very much.
Perhaps, VM has to admit that this adventure was too risky but I hope history will tell on him that he could save it to keep it alive until…..yes, my hope is still Magna.
sgns said on August 22, 2011
What’s this: “upcoming redesigned 9-5″ in the statement of VM to Automotive News above?
hilmar said on August 22, 2011
I am not sure, think I read somewhere it would be perhaps a bit more edgy/angularly.
sgns said on August 22, 2011
Very interesting! I can’t be bothered to remember a car maker with as thought-provoking design refreshes (outside of Bangle-MW
) – see what GM gave Saab there? To get to see a refreshed 9-5 would really be reason enough to be a Saab fan … a curious Saab fan.
E said on August 22, 2011
It either meant to be “upcoming redesigned 9-3″ or the 9-5 SC release, IMO
sgns said on August 22, 2011
That’s the thing no? With so many inaccuracies in the text, did they get that part right? You’re probably right. Anyway, that 9-5 SC to me is already an awesome elaboration on the NG 9-5
KarlR said on August 22, 2011
Wfg, I agree about Magna.
jmmdlow said on August 22, 2011
This post is totally innapropriate. As a Saab dealer this is insulting to read and does not speak for all Saab dealers. Saab continuously is ripped into by the Washington Post and Reuters – do we really need this on Saabs United as well? This is a place where Saab’s loyal followers come to get the latest news on Saab’s situation at hand without an opinionated author. This is not what Saabs United is about.
gunner712004 said on August 22, 2011
this is what i was implying earlier. speaking from a large UK dealer what we need is a measured round up of news not knee jerk ill thought out postings. please leave that to the tabloids. we are working hard to keep the Saab flag flying in the UK for the sake of our customers, Saab and our fifty staff
Tripod said on August 22, 2011
I agree with JH August 22, 2011 at 13:16 and Ralph August 22, 2011 at 15:32.
Tim,
This is a full quote from Automotive News… Why? This could be on a semi-amateurish one-man-blog, but here? And no comments from you? You could have done a small quote, put a link there, and then commented. That’s what we are missing, hence the comments from JH and Ralph as mentioned above. If something is wrong in an article you should point at that, comment, not quote it verbatim with no comments.
“Saab has not paid production workers since then.”
But I guess it’s easier, takes less effort, to just quote a full article and leave it.
—
Sometimes you have problems with mixing quotes with your own comments; such as in the recent blog post about two dealerships in SE. http://www.saabsunited.com/2011/08/two-major-swedish-dealerships-giving-up-on-saaab.html
This is the last paragraph in that blog post; above you had shown if something is a quoted comment (-) etc.
“The good news and major difference between Holmgrens and Bilpartner is that Bilpartner does not have any plans to cancel their dealership agreement with Saab right now. We have taken a stance of wait and see. We used to be a majority Saab dealership but back in 2005 when we realized that the brand was getting into trouble we introduced other brands into the dealership.”
Is the part before “we” a comment from you, and the part starting with “we” a quote? If so, make it clear.
I’ve seen it several times before, and it’s usually no problem to understand what is your editorial text and what is a quote, but it could be better. I know it takes time, and you all do a very good job tracking news and posting them; but sometimes it would be good with a little more work before posting.
davidgmills said on August 22, 2011
All that is going on now are discussions on how best to turn Saab over to the Chinese and wind down everything of Saab that has European involvement. European production is gone, so there is no need to decide what to do about that other than make sure there is no money to start up production in Europe.
It is simply a matter now of transferring everything to China and to full Chinese ownership. Maybe production in China starts in 2013.
European automakers and automotive corporations were never able to come up with any cash to do anything with Saab, just like the US and GM. Europe is as broke as the US.
Khrisdk said on August 22, 2011
Interesting theory
The problem is that it is just a theory
davidgmills said on August 22, 2011
I know. But it is a theory that makes a lot of sense from the Chinese standpoint. They really want the production not just the cars. So they have no incentive to see production return to Sweden for any length of time. If they get all the necessary tooling, they can be up and producing in less than a year.
And European production is costing more than the cars can sell for in Europe and the US or Saab wouldn’t be where it is. European production is a financial loser. So why would the Chinese want to throw money into that rat hole?
Red J said on August 22, 2011
This makes your theory completely wrong.
davidgmills said on August 23, 2011
If it was a financial winner, Saab would be doing fine. Instead, it is teetering on the brink.
Pedro said on August 23, 2011
European production is not necessarily a financial loser, but the idea that some that are interested in the SAAB name would rather let the current SAAB implode and then grab the pieces for a handful of SEK is not to be disregarded.
zippy said on August 23, 2011
Would you buy a Saab made in China? Not that they could even use the Saab name. Most things made in China are complete cr@p the only exception being Apple electronics and even them they are only assembled in China.
davidgmills said on August 23, 2011
I seriously doubt I would ever buy a Chinese car period. I am trying to unload all of the Chinese crap I can. But it seems that every where you turn, more and more stuff is made there. Not all is crap. Apple seems to be doing fine with their products made in China.
Khrisdk said on August 23, 2011
Letting the current Saab implode would mean that you had No Brand name and no IP
Saabs only exclusive IP is the Phoenix platform, which I would doubt is finished.
The rest is GM IP and JV’s with other partners who probably will do what they can to keep their IP and sell it to other manufacturers.
davidgmills said on August 23, 2011
I think Saab could go out of production for a year or two and still have a marketable brand name. As for the rights to GM platforms and other property rights, that would be no problem to acquire for a solvent buyer. GM still has a $300+ million dollar seller financing loan to protect. It would be in GM’s best interests to have a financially stable Chinese company take over and bail them out.
Pedro said on August 23, 2011
@ davidgmills – Please allow a comment from someone who knows nothing about anything: I don’t think GM would be unwilling to let a stable company take over the use of the IP that goes into SAAB. And 300 million as a writeoff isn’t really that much when your operations are generating a cool 3 or 4 billion of dollars every quarter… But GM is and, I believe, will remain silent on this issue.
As for the damage to SAAB as a brand, no one will know the real effect unless operations resume. I think the name is strong (the name being strong the reason GM didn’t kill it in the 1st place).
davidgmills said on August 23, 2011
@Pedro: Money generated from operations aren’t necessarily profit. The $300+ million represents profit lost and there is also the amount of interest due and owing on the loan. Depending on the time of payout that could also mean a huge amount.
I am not sure GM is going to just let this ride. If it were, it should have done it when it sold Saab and increased Spyker’s chances of success.
Frankly, I think GM expected Spyker to fail, especially without VA. So I think GM can play some hard ball here if it chooses, and may very well do exactly that.
Pedro said on August 23, 2011
@ davidgmills – cash generated form operations as presented in a company’s cash flow statement is actually a better measure than accounting profit because it is not distorted by GAAP rules: it is the cash that enters into the company minus the cash that exits the company, in this case related to the company’s everyday business (the other two major groups in a company’s cash flow statement being investiment activities and financing activities). Think of it as the movements in your personal bank account, if you will, if you categorize them as day-to-day movements (your cash flow from operations), investing movements (your cash flow from investments – if you buy a new house for example), and financing movements (your cash flow from financing activities – if you get a new loan or repay a loan you have).
And I maintain that if GM keeps generating 3 to 4 billion per quarter (emphasis on the expression ‘per quarter’ – one year, without seasonality effects, would mean 12 to 16 billion USD). 300million or even 300 million plus interest is not a brutally significant writedown in that case. My opinion is still that GM will only play hardball on this if some serious IP issues arise; if those IP issues don’t materialize, GM will be quietly sitting in the corner doing nothing.
100%Saab said on August 23, 2011
OK, just wake me up when there is some good news.
Just a thought.
theSandySaab said on August 23, 2011
A lot of cr*p comes from china, but most of it was designed and produced as exactly that- cheap cr*p. Also, most of it went to the US! Having been numerous times in china and having friends doing business there, all I can say is the Chinese do production better than most (be it with environmental and human rights issues) and have become the factory of the world. They can produce anything you want in any desired quality and quantity.
While hurting for my country men, the trolls wanting to build saabs in Sweden, if I had a choice to not buy a Saab at all or to buy a Swedish designed Saab, assembled or built in china, I would definitely consider the latter. Just as I truly enjoy my apple stuff… Also, the Chinese are sitting on all the melting us dollar, they have to do something with it…
Finally, remember that the airbus A320 series airplane is now built outside shanghai in a joint venture with airbus Europe. Airbus had thought it would take at least 5 years to go from drawing to actual production, as it would in Europe. They were shocked to see the process took just over 2 years!
LG Aero said on August 23, 2011
Zippy,
I am afraid your statement on China making only crap except for Apple items is flawed. The fact that they do make high quality items for Apple is the tip of the iceberg. there are many other high quality products produced in China as well.
Sure they turn out a ton of low price junk, but that is what the market wants. when a customer is willing to pay the quality is there. With Swedish engineering and tool design etc, a Chinese factory could turn out a good car.
Not that I wish to see production stop in Trollhatten , but the writing is on the Great wall that cars of quality will come from China to export markets within in 10 years
Khrisdk said on August 23, 2011
Agree on that. make it 15 years and consumers will also have forgotten that they thought it was junk
AJ Murphy said on August 23, 2011
Saab friends:
This article paints a dark picture from the dealers’ perspective. Please put me on record as a dealer who has 100 percent confidence in the brand’s future. Unfortunately, my comments to that point did not make it in the article. I’ll say it again: I am confident that once short-term funding is secure (which I have no concern will happen) our future looks incredibly bright.
I respect and stand behind Victor Muller, Tim Colbeck and every one else behind the scenes working on Saab’s future; There are no better people to be doing this job.
Anyone that knows the Just Saab organization knows we are second-to-none when it comes to supporting the brand.
I’ve asked the SU team to make these comments known to the Saab community as it’s now more important than ever to show Saab support from the dealer body.
AJ Murphy
Just Saab