Breaking NEWS *updated
August 19, 2011 in News
SaabsUnited can confirm from very reliable sources, very close to the management of Saab, that our previous news regarding Endeavour Advisory Group are true.
The sources also claim that the amount discussed includes taking out the 217 Million EIB loan in a combination of bankloans and equity.
This would bring the cooperation to the top 3 private equity firms in the USA.
Aftonbladet confirms our story with Gunilla Gustavs here
lensaffair said on August 19, 2011
Now this is the kind of news I want to wake up to.
DUTCH900C said on August 19, 2011
Yabbaaahh! Dabbaaahhhhh! Doooohhhhooooohhhhh!!!!!!!!!!!!!!!!!!!!!!!!!!!
I’m happy and sorry, i sounded like Fred Flintstone.
i. ant. kal. said on August 19, 2011
good times are abot to come!
i am sure….
Saab up!
dcpattie said on August 19, 2011
As the owner of a 2012 NG9-5, this is great news. However, the whole “Private Equity” thing makes me nervous; hopefully Endeavour won’t be another Cerberus!
GrumpyGriffin said on August 19, 2011
This sort of News only helps the day traders, I cant see how it helps Saab, these things should be kept quiet until the deal is is final, to many false dawns do not help!
TimR said on August 19, 2011
Enjoy it for once…
Tim said on August 19, 2011
It will be interesting to see what’s happening today. The indicated opening is already 10% above yesterdays closing.
Tim said on August 19, 2011
I wasn’t able to confirm a rumour I heard but it seems this is part of a series of deals which is about to be announced.
Saab Up!
Ruben NL said on August 19, 2011
Very good news, indeed.
Audun said on August 19, 2011
Very good to hear such news!
ryanonsrc said on August 19, 2011
Yep, I think we are going to witness an official announcement soon … this is going to be a happy Friday indeed
Carlo A said on August 19, 2011
They’ll probably wait until the close of the tradign hours, after 17.30 CET
ryanonsrc said on August 19, 2011
That’s about when I will be waking up
ANA said on August 19, 2011
Calm down, one can’t help but feel people are getting carried away with this…..
zippy said on August 19, 2011
This is the kind of news I like to go to sleep on! Only the sweetest of dreams for me tonight. That a difference a day makes. Go Saab. And tell the fat lady to got to h-ll while you’re at it!!!
ryanonsrc said on August 19, 2011
+1 … yep, It’s almost midnight here and I plan to have a nice sleep as well …
AngryEngineer said on August 19, 2011
I’m keeping the champagne at a good temperature… I’m hoping I can open it next weekend to celebrate a confirmation of production start and money in the bank for Saab
KarlR said on August 19, 2011
Finally!! EIB is and will always be a joke!!
ANA said on August 19, 2011
Very encouraging, I just hope they can secure funds very fast.
Cokeisit said on August 19, 2011
I bet that we will not read anything at all about this at di.se
Tim said on August 19, 2011
They are still thinking how they can report this in a negative way
ante said on August 19, 2011
The stockmarket as well as the housing market in sweden is turning down fast so di.se will be occupied with that leaving SAAB alone for a while. Di.se need something bad for readers to return and housing market is a looooooot yummier than saab
Now they will alternate interviews with real estate agents and bad statistics until there’s a cold day in hell…
Grumpy said on August 19, 2011
They have it already on di.se. Very small and without any real comment or evaluation.
Cokeisit said on August 19, 2011
I’m 100% confident in that they will succeed in doing so
JST1981 said on August 19, 2011
This is good news. But guys, let’s wait and see until the papers are inked. I think taking out the EIB loan is vital for Saab’s further existence.You can say what you want about VM who I have never seen as the knight in shiny armour and saviour of Saab but he is trying hard to fix all that mess. This has to be recognized an appreciated. I hope that this deal will be sealed very quickly so that the next steps can be made.
@Grumpy: For sure that kind of deal would only exchange the creditors but we should wait and see what the details of a potential agreement turn out to be. I think it’s much easier to deal with a private equity group than with a bank. Private equity groups want to make profit banks want to make profit but have also other things in mind. Let’s wait and see what the deal wil look like when / if it’s sealed.
phermansson said on August 19, 2011
News break on the radio right know, Gunilla Gustavs confirms this.
Carlo A said on August 19, 2011
Hi, what has Ms Gustavs confirmed?
WD78 said on August 19, 2011
Swedish Radio P4-Väst said that she confirmed that Saab has appointed Endeavour to help Saab with short-term financing.
Carlo A said on August 19, 2011
thanks
kaiger said on August 19, 2011
http://sverigesradio.se/sida/artikel.aspx?programid=125&artikel=4653477
Pedro said on August 19, 2011
Short-term??? That is not what PE firms do… Unless she is talking of some kind of bridge loan to cover for the time needed to complete the deal with the PE funds.
TimR said on August 19, 2011
Dont you just love it when they dont state where they got the news from
we are first with it again 
Patrik B said on August 19, 2011
Within 60 days; How on earth will Saab survive until October?
I am really scared that somebody is making a fortune on the stock market by letting the SWAN share price go up and down over and over again.
TurboLover said on August 19, 2011
Well, it just makes the Movie better, doesn’t it?
9kCDGriffin said on August 19, 2011
‘within 60 days’ sounds to me like: within MAXIMUM 60 days.
so next week is also possible
ryanonsrc said on August 19, 2011
If I understand correctly. As soon as those EIB goons are paid off … the flood gates will open and VA can come riding in on his white horse
ante said on August 19, 2011
Is he still in the picture?!?
Carlström has been very quiet lately. And nothing from VA himself since he was going to investigate the possibility of legal action against swegov.
Jeff said on August 19, 2011
Ante- Let’s just say the name Swan is apt for all the players involved here. Those who get the reference will know what I mean.
Pedro said on August 19, 2011
@ Patrick B – Do you mean: short the stock, make some nice money when it hits rock bottom, buy low again to close your short position, then start the game again?
JST1981 said on August 19, 2011
well this is high-class gambling
Pedro said on August 19, 2011
LOL, indeed it is!
ANA said on August 19, 2011
I think this is unlikely as stock is down 15% today, so I guess many people didn’t see this as news at all.
Tim said on August 19, 2011
It didn’t really make the news in Holland… Which did make the news was the first seizure of assets.
Pedro said on August 19, 2011
It recovered to a -8.96% drop at 15:46PM CET and which time trading was halted. Can’t see why from the Euronext website… Too huge of an intraday price swing, perhaps?…
Pedro said on August 19, 2011
And now at 15:54 CET the Euronext website shows SWAN stock is up 1.79%, still with the trading halted sign up… I am not familiar with the Euronext website, though it is interesting that the stock is showing such swings… Part of it is market-wide sentiment/uncertainty as the last 2 weeks have been of really high volatility in markets.
phermansson said on August 19, 2011
http://sverigesradio.se/sida/artikel.aspx?programid=125&artikel=4653477
DUTCH900C said on August 19, 2011
And here is some music, from 1979 (is also the first modelyear, not the first year of production, that was 1978 of the SAAB 900):
http://www.youtube.com/watch?v=dqFOxKPD_Ok
TurboLover said on August 19, 2011
And when the Chinese enter we will play:
http://www.youtube.com/watch?v=CS9OO0S5w2k
DUTCH900C said on August 19, 2011
Ohw yes, indeed!
KarlR said on August 19, 2011
60 days is to long!
DUTCH900C said on August 19, 2011
Are you working for http://www.di.se ? And why are you so negative about this great news?
RadioMan said on August 19, 2011
KarlR. Did you mean to say “60 days is too long” ?
Tolstoy Syndrome said on August 19, 2011
People don’t drink the sand because they’re thirsty. They drink the sand because they don’t know the difference.
Hans H said on August 19, 2011
?
DUTCH900C said on August 19, 2011
In my opinion you better can take (some) more time to work on a sollution as doing that kind of business in a short time and that is because you then get a better sollution for the future.
So instead that the prodction starts at the end of this month/the beginning of next month, we have to wait some longer, but SAAB have a better fundation what can be (very) good for the future and a long future for SAAB that is what i tink is the best for “our brand” and i also think that that is the sollution what everyone (of us) wants.
Peter, Sweden said on August 19, 2011
Ante, I’ll eat my steering-wheel if he isn’t. I’m positive he is as involved as ever. And Karl, it’s maximum 60 days, and I’m sure there are more deals in the signing simultaneously…
Jake said on August 19, 2011
While steering wheel casserole may sound amazingly enticing, don’t do it.
MarkoA said on August 19, 2011
Victor Muller is simply awesome! Saab up!
KarlR said on August 19, 2011
Im just asking everyone to please slow down. They have asked someone to find investors for them but its no gurantee that they will or how fast! But its a good start.
skwdenyer said on August 19, 2011
This is quite right. And, if we’re being slightly balanced, why has it taken so long to appoint somebody to do this? Speaking as somebody in a similar position, I do wonder if VM is just a little too stretched right now!
obelix said on August 19, 2011
It seems to me that they appointed someone earlier than just now… probably they approached several equity firms and it might be that this one might find funds for Saab.
Good news, but too early to open the champagne.
Daniel B said on August 19, 2011
Finally some positive news:)
I´m hopeful and optimistic.
Hope this help to turn the neagative spiral down upwards as far as Swedish media goes.
VM/ VA/ GRIFFIN UP!!
Tobbe said on August 19, 2011
Good news!
Wonder how DI.SE can change this to something negative, they are so good at that…
Griffin up!!
TurboLover said on August 19, 2011
I’d say they have reported it like: “Saab is hiering another consultant”
http://di.se/Default.aspx?pid=242929__ArticlePageProvider&epslanguage=sv
Pedro said on August 19, 2011
DI’s way of putting ity is actually not a false statement since Endeavour Advisory Group, as its own name indicates, is an advisory firm, i.e. a consultant. It is no different than hiring SEB’s Investment Banking arm to look for investors willing to put money into the company
A thing I found interesting while quickly browsing through their website is that this this Endeavour Advisory Group seems to have a lot of real-estate expertise in its team.
gawdlpus said on August 19, 2011
Hang on, has Ms Gustav just said that they have hired this company? From the statement she is making there and from a quick glance round their website, I would say this company do not actually have any money themselves, they only help track it down in order to put deals together. Their website is basic to say the least & hardly gives any information as to what their past successes have been. Plus, if Saab have hired them, surely that means they are yet another creditor if it all goes wrong?
Sorry this sounds to be like another attempt to convince the creditors to withdraw the petitions as there are investors “Just around the corner, honest there are, loads of them with lots of money, you’ll get paid then, honest you will,” & yet again, has Muller consulted PangDa over this?
Oh and no one on here seems to be reporting that the money put by for the wages from the GEM deal cannot be ring fenced from the DEA and will be spent to pay off creditors if the baliffs decide it is proper to do so. Which puts Saab right back to square one on that front.
Sorry to wet your chips guys but we are a long way from being in the clear yet. Until I see proof that a dollers cheque with a figure that ends in a billion has been paid into the bank, will I believe that Muller has saved Saab.
Too many false dawns.
Aero said on August 19, 2011
Or as written by Aftonbladet “Endeavour would not confrim the deal with Saab unless the money was already secured”
GrumpyGriffin said on August 19, 2011
Took the words write of my keyboard, how I love the smell of urine on fried potatoes!
Pedro said on August 19, 2011
Endeavour Advisory Group seem to be acting as mere advisors in bridging the gap between the compnay and potential investors (i.e., they are advisors looking for funding). What I find interesting is the comment about short-term financing. SAAB needs to be carry very little leverage, especially in the case of debt with low duration/maturity; I do not think more debt is a long-term solution for SAAB.
Jeff said on August 19, 2011
The debt from the EIB is dirty (binding and full of restrictions), while the debt from these new sources will be considerably cleaner. Huge difference.
Pedro said on August 19, 2011
I have to say the dirty vs clean distinction there is one of the funniest I have ever read… The EIB would never give money for anything other than long term investment projects and VM and SAAB’s management knew that all along. The EIB is NOT in the business of working capital financing and again, VM and SAAB’s management knew that all along. If it was/is so dirty, why did SAAB take the EIB money?…
skwdenyer said on August 19, 2011
Without long-term development and investment, there was no chance of Saab surviving as an independent. It couldn’t afford to wait for revenues; it had to start investing immediately, if only to create an asset, IP and expertise base with which to court potential long-term investors / buyers.
Without the EIB money to allow that to happen, I doubt GM would have sold to VM.
So the EIB money was necessary to make the sale happen in the first place. Unfortunately, it seems, its restrictions, coupled with a whole slew of other problems, meant that the road since has been rather too rocky.
JST1981 said on August 19, 2011
Pedro I think that this was just a lack of alternatives
Pedro said on August 19, 2011
Still, JST1981, what is done is to rework the balance sheet side of your business plan (in this case CAPEX and Financing). You know you can spend that financing on a single class of fixed assets, so you build that into your model and fund the rest of the company’s projected funding needs with whatever funding is available. Also, if SAAB management had knowledge from the beginning that they had no other alternatives and that they would need to try and use the EIB money to fund operations, that looks very bad in the overall picture… To this point I refuse to believe that =/
Khrisdk said on August 19, 2011
What doesn’t take?
would it comfort you a little If the demands from DEA are paid and salaries are paid?
TonymacUK said on August 19, 2011
Your first para graph mirrors my thoughts – I think we should proceed with caution.
aki said on August 19, 2011
This is great news. I have always had very much confidence in the managemant. After all look at all the bashing they have been taking and they are fighting for our beloved brand.
Who said it is was going to be easy? We still have a long way to go but the spirit is there and the swedish press will still try to dig dirt..
aki said on August 19, 2011
Hey Tim…, was this the news that made you smile a couple of weeks ago??
Jeff said on August 19, 2011
Partly
aop said on August 19, 2011
wow
Jake said on August 19, 2011
I can’t wait to see what’s next
aop said on August 19, 2011
Well done Mr Muller !
Keep up the work for bringing back this company where it belongs!
Sadim said on August 19, 2011
Why hire somebody to look for money? Antonov has got the money. Antonov has a bank. Why doesn’t Antonov clear the EIB loan for which there are secured assets and add the billion(s) that Carlström has been talking about. This would show to each and all that VA has great faith in the company and maybe interest others in investing too.
Hiring yet another group to do what Antonov reasonably could be doing seems very strange to me. My interpretation is that VA is not prepared to put any more cash into SAAB: – It’s “other people’s” cash that is to be put at risk……
Tim said on August 19, 2011
Cause the EIB doesn’t let VA do this…
Sadim said on August 19, 2011
The EIB will have nothing to say against VA taking over the loan. They never have, and never will. And GM were happy to sell their share for some 800 MSEK. There is really NOTHING stopping VA acquiring SAAB – except for the will to put the cash up-front.
Sadim said on August 19, 2011
And what happened to the Gemini-money? Did it ever turn up in Sweden? Remember the pile of cash that according to Swade was “stuck at the border”…… Maybe like bananas, it didn’t stand storage at the border, got just a little bit to ripe and had to be discarded.
Leeloo said on August 19, 2011
Exactly, this is a hot potato… have tried to bring this up several times without anything else than personal comments about being negative. Glad someone else is bringing it up.
Khrisdk said on August 19, 2011
Well
On that point noone really knows which money was “stuck at the border”
Everybody assumes that they were the Gemini money
GrumpyGriffin said on August 19, 2011
I think this money was from the fabled mystery buyer (remember the mystery chinese buyer that was supposed to be buying cars in addition to the Pang Da orders) anyway i think they pulled the plug at the last minute and the money did not arrive, not so much stuck at the border, as stuck to the funder who decided not to part with it!
Khrisdk said on August 19, 2011
Or blocked by Cina Gov.
Options on what money and why they got stuck/never appeared in time are Legio
Grumpy said on August 19, 2011
Well Sadim it is a lot money, even for a large bank. I don’t think Antonov would like to empty his bank vault completely just to get his hands on Saab.
The only sensible thing is to get a number of banks to go together to lend the money. This is common business in the banking world as banks are normally not allowed to put all their eggs in one basket.
So maybe it isn’t so strange, or?
Sadim said on August 19, 2011
The problem is that “banks” have shown zero interest in investing in SAAB. The ones willing to deal with SAAB want either an almost instant return (recent share issues) or securities in the form of fixed assets (EIB).
Normally high-risk-taking Swedish tycoon Christer Gardell clearly stated that an investment in SAAB was more than he dared get involved in.
So that leaves SAAB with few options. As I said – IF Antonov were to move in, it might just inspire others. But no sign of any such inclination would make me keep well away.
aop said on August 19, 2011
Sadim,
from what I’ve read, but I might be wrong as well, Antonov does not have THAT much money.
He could probably buy out the EIB loan , which will clear his path to invest in SAAB, but then he would not have so much left to invest .
So it doesn’t make too much sense, does it?
Grumpy said on August 19, 2011
Oh I don’t think any sensible bank manager would lend money to Saab WITHOUT collateral. A bank would be looking for something they can turn into money fast if things goes pearshaped. Shares will not be useful if the value is zero so buildings, machinery and other equipment will do best. Abviously any cash deposits will be the first to be used.
There are many parameters a bank or rather a group of banks, would need to evaluate but for that to happen they need to have an official request from the company.
If the potential gain is higher than the risk there will be money. Saab will need to show that they are worth lending to, not necessarily investing in.
@Till72, nice talking to you.
Pedro said on August 19, 2011
But, on the issue of lending vs investing, isn’t one big issue at this point that leveraging the company even more, while enforcing cash management discipline (the hard way), also puts pressure on whatever cash flows SAAB will be able to generate? The company has to service the debt, i.e. pay interest on the debt plus the principal it received form the lending entity/consortium, correct?
Meller said on August 19, 2011
Maybe because Antonov has always been a PR trick of VM….
Andrew-V said on August 19, 2011
I think positive news in current condition are re-start of pipeline only. All another are on border-line between desired and actual only…
aop said on August 19, 2011
Anyway we look at it, it prooves that SAAB management didn’t sit with their arms crossed all this time.
I’m really confident they are working on other deals that will be announced soon.
So cheer up people, it might not be the final delivery but it proves things are moving in the right direction.
phermansson said on August 19, 2011
I think it get’s really exciting when you think about the job ads that came out yesterday. That, and this news, makes me think there are more good news in the pipeline.
aop said on August 19, 2011
Rightly so, I’m getting really really excited ….:-)
While I understand to some extent the scepticism of some people, I can’t help noticing all the things that seem to fall in place the right way, which is enough for me right now.
The exit from this situation will not be one to be announced as a breaking news, but several deals in a row for short and long term financing while geting rid of EIB, which is what SAAB seems to be working on right now, isn’t it?
aki said on August 19, 2011
1+
GrumpyGriffin said on August 19, 2011
The markets don’t seem to think so SWANS price is now exactly where it started this morning, like I said To Many False Dawns!
Sadim said on August 19, 2011
This is very off-topic, but I feel I must say… I love your grumpy attidtude GG.
It reminds me of an old story of the meeting between the optimist and the pessimist. Things had gotten bad (sort of like today) and the pessimist said:
- The state of things is just awful. Things just cannot get worse than they are now……
And the optimist replied….
- Of course they can, Things can get MUCH worse….
GrumpyGriffin said on August 19, 2011
Well someone needs to balance out the hysterical swings between optimism and pessimism we see on this blog, I prefer to be the unconvinced sceptic quietly hoping for the best but expecting the worse !
Pedro said on August 19, 2011
+1
Sadim said on August 19, 2011
+1
Hans H said on August 19, 2011
The Masochist says:
- Hit me, hit me
The sadist answers smiling:
- No !
Alexandros said on August 19, 2011
…please read this story:
http://www.mikelockett.com/stories.php?action=view&id=102
“When your life gets really tough.
When you think you’ve had enough
When the world works you to death
Just try to take a big deep breath
Try so hard before you rest
Keep on working, do your best
Don’t give until you’re done.
Don’t give up until you’ve won.”
katar1na said on August 19, 2011
That´s exactly what SAAB, Sweden, Trollhättan and the whole world needs to hear!
Thank you for sharing this
aop said on August 19, 2011
Well,…. let’s wait and see
Why not making a 10k euro investment in SWAN stock right now as they’re near their lowest in 52 weeks, and order yourself a new SAAB in a week (that you’ll be paying out of the cash you’ll be getting by selling your stock).
How does this sound as an investment and helping your favorite car company as well in this rough times?
You only need to believe in it.
Pedro said on August 19, 2011
This quote is interesting from a Finance perspective: “This would bring the cooperation to the top 3 private equity firms in the USA.”
According to Private Equity International, the top 3 Private Equity firms in the US are: TPG Capital, Goldman Sachs Capital Partners and The Carlyle Group. TPG works with distressed companies, but it does leveraged recapitalizations and I don’t think that leveraging even more is a good idea for SAAB. Goldman Sachs Capital Partners is mainly focused in leveraged buyouts (I don’t think their growth capital business apllies to SAAB or the auto sector as a whole as the returns expected in growth capital are quite big and the auto industry does not yield those returns as a whole), so basically it’s same situation as with TGP. The Carlyle Group has investments in the automotive business (Allison Transmission), so in theory it could be the best fit.
So the questions in my head regarding the PE firms are: Have these 3 been confirmed as the firms to be approached by the consultant to provide funding for SAAB? And though in all likelyhood no one will publicly comment, have/will any of these 3 been reached for comment by the press, SU, or anyone else?
dave said on August 19, 2011
Good Luck !
Jonno said on August 19, 2011
Too much hysteria, as usual. Until, we have an offical statement, everything is speculation.
MOst important question of all – will Endeavor or whomever help Saab get the production line rolling again on 29 Sept. The factory staff return this Mon, 22 Sept………we can’t wait 60 days or whatever to get finance… , if we do , a company that is already bleeding to death will have no blood left to bled and rigor mortis will have set in…then its game over and switch out the lights.
Jeff said on August 19, 2011
All I can say to your call for an “official statement” is Tim is not bluffing when he says that he has a very reliable source. In fact, I don’t think it gets any more reliable.
To all the Swedish journalists out there reading this, be sure that what we’re reporting is 100% accurate. We’ve been cautious with our posts, this isn’t an optimistic opinion piece, this is real breaking news.
Tolstoy Syndrome said on August 19, 2011
Has it ever struck you that the information you get from “credible sources” may be transmitted for a reason? Has it ever struck you that Saab’s management are breaking the law by providing access to information that could affect the stock price before everyone else?
TimR said on August 19, 2011
Yes it has… we have of course considered it! But to be very honest, I don’t think they would be stupid enough to do that!
Tolstoy Syndrome said on August 19, 2011
If I’ll be honest, it would be neither the first nor the last desperate act which Victor Muller has done recently. Many of the gestures that he made just the last week teetering on the legal limit. And in some cases, he has gone far over it!
I just want to say, do not get caught in the wind. You never know what’s around the corner.
Pedro said on August 19, 2011
Unless someone is playing the “short-the-stock-and-make-big-money-from-volatillity” game Patrick B wrote about in his post.
Just a little disclaimer, so that this post is read in a 100% clear and unmistakeable way: I am not saying anyone is doing it, I am just stating the reason I believe is behind Patrick B’s and Tolstoy Syndrome’s concerns
Tolstoy Syndrome said on August 19, 2011
Pedro, +1
If Victor succeeds, so be it. Good. SAAB is a wonderfull car and I would be more than happy to buy one.
If he fails, this might well be the biggest scam in Sweden since Trustor. As it stands right now, I would not be surprised. It would even be fully plausible. Unfortunately, I think the Saab brand is dead no matter what happens going forward. There is too much uncertainty for anyone to dare to buy SAAB again. But that’s just my personal opinion.
Pedro said on August 19, 2011
Tolstoy Syndrome: agreed.
I too WANT VM and his team to succeed, but something’s not quite right in the whole story. The bad guys are always the Government, EIB, etc, and yet with all that somewhat entertaining (but quickly becoming tiring) blame game, the production line is still stopped, no cars are being produced/sold, the dealers are hurting badly and will invest their time and money into other brands depriving SAAB of the sales channel it needs in case production resumes…
This endless saga is doing the SAAB brand irreparable damage, and what annoys me about it is that I honestly think SAAB got a got chance to survive with the sale to Spyker (now SWAN) deal – I saw a 9-5 today here in Lisbon and it is imposing-looking in a good way: a top notch, nearly flawless interior would give it an edge with respect to the 3 well established German brands, and that interior upgrade would have been a relatively easy fix. But the reaction to not meeting the early Business Plan sales targets was, to put it kindly, too slow and too soft.
I still wonder, though, what Jan-Åke-Jonsson’s view of of this whole story is (both as an insider and now as an outsider) and if we will ever know his views: I think he should write or coordinate the writing of a business memoires book some day
Patrik B said on August 19, 2011
As Tolstoy wrote; this could very well be a well directed scam. If I try to look at it from the outside there are many things that are really “fishy”. For instance; for what reason do we have this regular stream of rumors from insiders? And why have we not seen any of these promises fulfilled (or at least I don’t know if they are fulfilled). If this is a scam then the team @ Saabsunited have been fooled, big time.
On the other hand; I think that the deal with the Chinese companies really makes sense and the only major problem Saab have is short term liquidity.
So I don’t really know what to believe. The fact that Swade is on the inside is both encouraging and discouraging as he is an outsider that loves Saab and I don’t expect him to “rob” Saab but it also puts him in a risky position as the information he is getting might not be the complete truth.
Pedro said on August 19, 2011
@ Patrik B – The Chinese deal was/is crucial, as would a similar one for India be, especially when SAAB builds RHD cars and GM does not want to sell Cadillacs in India (can one spell the expressions “opportunity” and “GM still acts dumb”?)
I agree the short-term liquidity issue is probably the only critical structural problem SAAB has, but the other side of the coin is that, to me at least, SAAB cannot and will not be able to survive on leverage alone. Any deal needs to address the short term by employing higher maturity capital (and, again to me personally, that would mean a significant cash injection via new equity).
Patrik B said on August 19, 2011
@Pedro; Of course a deal must be substantial enough to provide short term capital that also ensures long term stability.
For instance; I am interested in buying a ng 9-5 SC but there is no way in h*ll I am ordering anything during this conditions. Even if they got the production running on the 29th I wouldn’t be interested unless somebody injected enough money to make the company survive for a couple of years.
Tolstoy Syndrome said on August 19, 2011
That what I meant by the phrase “do not get caught in the wind”. It is not just DI, Svenska Dagbladet and the Swedish media that sometimes lack of control of the facts. SU spreads sometimes the rumors that are pretty easy to dispel. And often the source is “credible sources” from within SAAB. SU takes a great risk by spreading these rumors. Especially since they are sometimes quite exaggerated and / or quite far from reality.
Take the story of Lars Carlstrom, for example. One wonders what V. Antonov was thinking when he put a convicted financial criminal as a spokesman. Is this kind of PR that SAAB needs? I dont think so. Yet he is hailed by many here at SU. Why? Personally I think the recruitment of Carlstrom says it all. But again, that´s just me.
Since I’m new here at SU, I will make clear to everyone that I am not here to spoil your life. But there are unfortunately a great many of you who will find it difficult to realize that sometimes the coin has two sides.
Pedro said on August 19, 2011
@ Patrik – I know what you mean; my story is somewhat similar. I was thinking of either waiting 4 or 5 years for a smaller 9-1/9-2 or make the extra financial effort of going for the new Phoenix-based 9-3 in a couple of years time, even though it would most likely arrive in Portugal priced beyond the price ceiling I generally consider acceptable. But after the last few months’ chain of events, there’s no way I’d get my money in such a car-buying deal. The way things are right now and with me wanting to preserve as much of my financial freedom/flexibility as possible, I’ll either stay with my current brand (MINI) or I’ll migrate to an Opel Astra GTC. Wonder how many more potential clients, ones that might even make a solid effort to support the brand going forward, SAAB has lost over the last 4 or 5 months…
WM said on August 19, 2011
Thanks TS, Pedro, Patrick. One of the best, most well-reasoned thread snippets in some time. While I don’t personally think there’s any ill-intent by VM, some skepticism is in order until production has actually restarted.
Tripod said on August 19, 2011
Tolstoy Syndrome August 19, 2011 at 12:58:
“If Victor succeeds, so be it. Good. SAAB is a wonderfull (sic) car and I would be more than happy to buy one.
“If he fails, this might well be the biggest scam in Sweden since Trustor.”
Isn’t that a VERY bold statement? There could be all kind of reasons for failure. Difficult starting position, and late, after the GM winding down process; large expenses taking home production, creating an infrastructure for everything needed as independent, and finally bad decisions, bad management, all that and some more could cause a failure. But to start with saying that if it fails it might be a scam, and comparing with Trustor… Gee, talk about speculation.
Tripod said on August 19, 2011
Patrik B August 19, 2011 at 13:31:
“For instance; for what reason do we have this regular stream of rumors from insiders?”
I haven’t counted ‘em; but as far as I remember there were some “djupstrupe” during Swade’s time here as well.
“So I don’t really know what to believe.”
Do we have to believe anything at the moment? If we are just Saab owners, enthusiasts?
As Fritiof Nilsson Piraten said: Man “visste inte vad man skulle tro”, och alltså trodde man.
Some here are at the boiling point; typing and clicking away short messages about this or that. Chinese money were did they go etc. etc. Does the company have to tell everyone and his dog where that money is or what they have been used to at the moment? Don’t think so. As have been speculated (!) earlier, they could very well be “locked”.
But go on and speculate, if one wants the best outcome for Saab, I think one should keep that to a minimum nowadays.
skwdenyer said on August 19, 2011
@Pedro: you want to avoid buying from a financially-unstable company like Saab and instead buy from Opel? Why? Opel are bankrupt, only being supported by handouts from GM, who in turn had to be bailed-out by the US Government.
How is that more stable? GM could shut down Opel tomorrow just as they shut down Saab!
Pedro said on August 19, 2011
@ skwdenyer – I don’t think neither Opel nor SAAB were in such a serious situation at the time of the GM/Spyker deal once one removes the corporate overheads BS that these two companies had to pay to HQ at Detroit over the years. In my personal view, what happened was that the ‘cancer’ that Old GM was in North America needed to be fed no matter what.
Regarding Opel: still undergoing restructuring but now has a very nice and perfectly competitive (save for gasoline DI engines) product lineup; Rüsselheim continues to be a major GM development centre; Opels are being sold as Buicks overseas which makes it a perfect fit in a 3-brand approach that GM is pursuing (launching Buick in Europe would probably be both too expensive and a nonsense when you have a perfectly established brand such as Opel). Also, GM (the consolidated entity) generated USD 5 billion in cash flow from operating activities in its Automobile segment during Q2 2011 (and generated USD 6.6 billion in full year 2010), so GM has the means to properly support Opel through its restructuring.
So, to compare the situation of the two brands (Opel and SAAB) is to me an apples-to-oranges comparison and yes, I would not have (and likely will not have) any issues in buying an Opel. Additionally and regarding Opel’s shutdown, of course GM won’t shut it down to hand over to competitors up 9% or 10% of market share in one of the world’s major markets just like that.
Oh, and of course, the most basic and pragmatic reason is that Opel is building cars; SAAB is not.
OddJob said on August 20, 2011
Tolstoy
Has it ever struck you that the information you get from DI, TT, Bloomberg, Timbro, Anders Borg and other “credible sources” may be transmitted for a reason?
Audun said on August 19, 2011
Great! Keep utpthe good work.
Audun said on August 19, 2011
Correction: Keep up the good work!
phermansson said on August 19, 2011
Well Gunilla Gustavs has confirmed the deal in live radio and on different websites, won’t call that “speculation”?
Tim said on August 19, 2011
She confirmed an external advisor has been hired to (basicly) search for money. She didn’t confirm the money has been found and I guess that’s the part we’re all waiting for
Peter, Sweden said on August 19, 2011
@Tolstoy: “There is too much uncertainty for anyone to dare to buy SAAB again.”
Please don’t talk for someone else. I know many with me who’re more than sure about buying a Saab the same minute the production line starts (and even more people are just waiting for the new 9-3, and the 9-4X is still selling well). And if the line doesn’t start, I’ll just buy a MY2010.
So here is a correction: “There is too much uncertainty for Tolstoy to dare to buy SAAB again.”
Tolstoy Syndrome said on August 19, 2011
Hi Peter,
Yes, and I know many who disagree with you and your friends. Sales statistics speak for themselves, and now I do not mean just since production has halted. It did´nt look particularly good in the beginning of the year either. Take a wild guess and wonder why that is.
Khrisdk said on August 19, 2011
Just fo statistics on that I know one buyer in DK who is about to exchange his NG9-5 Aero 2.8T for a 9-4X.
That’s a bet of 1,5Mill DKK + the loss of selling the Aero in todays market
That dosn’t move much in the grand totals, but there are still people out there who don’t care about the uncertainty
Tolstoy Syndrome said on August 19, 2011
This is what i´m talking about. It’s getting quite scary now. And embarrassing.
Tolstoy Syndrome said on August 19, 2011
Tolstoy Syndrome said on August 19, 2011
http://www.svd.se/naringsliv/saabhandlare-sager-upp-kontrakt_6401417.svd
Tolstoy Syndrome said on August 19, 2011
Damn wordpress.. :S
Pedro said on August 19, 2011
I don’t know how these distribution/concession contracts work, but due to SAAB’s situation, can the dealer invoke some kind of “force majeure” mechanism to simply tear the contract apart without any legal or financial consequences?
Khrisdk said on August 19, 2011
I would say that lack of deliveries could be considered a breach of contract, so they might have a case.
On the other hand I wouldn’t expect Saab to try applying too much pressure to dealers, leaving or not, so it might be academic
Pedro said on August 19, 2011
That’s the type of situation I was starting to picture in my mind, Khrisdk.
SAAB has zero or close to zero leverage in any negotiation right now, so if it’s “free of charge” to invoke SAAB’s situation as a way to get out of the contracts, there’s a big risk on the horizon that other dealers will take the initiative of jumping ship too. Stand alone dealers have no choice to either close now or stay no matter what, but multi-brand dealers could be much quicker in leaving SAAB behind.
Khrisdk said on August 19, 2011
Well
Somehow I knew that was what you meant
Jos said on August 19, 2011
@Jonno: Either you’re mistaken, or I’ve missed an update, I thought the dates concerned were 22/8 and 29/8 repectively, so August, not September
i. ant. kal. said on August 19, 2011
@ Tolstoy and his Syndrom…
well just buy a Audi or Toyota… they sell million times.. no?
Rogge said on August 19, 2011
Jipijakaje i am weary happy now i hop that is true………….When i go to work to Monday so can vie have good news
SU is the best!!!!!
Pedro said on August 19, 2011
@ skwdenyer – there are (or were at the time – not so sure if they would still be avalable today) other long-term alternatives other than the EIB, except that interest rates would most likely have been significantly higher given the risk profile of the company and the bank’s reluctance to lend following 2008. But again, SAAB’s management knew of the EIB conditions and modus operando from the start; they knew that money was locked to their CAPEX spending (and, I suspect, mainly/specifically aimes at environmentally friendly propulsion projects), so to be hones I don’t buy this “bad boy EIB” story.
To me it’s the “slew of other problems” bit that is the crucial point of SAAB’s story over the last year.
skwdenyer said on August 19, 2011
If I recall correctly, one of the attractions of the EIB deal was that it was iron-clad; once offered, it couldn’t very well be rescinded, and was backed by the Swedish Government. So it provided certainty of supply of funds over a given timescale.
I don’t subscribe to the ‘bad boy EIB’ theory, either. At the end of the day, the EIB made the rules; it was up to Saab / Spyker to agree to them. BUT I would say it was unreasonable of the EIB not to have (a) seriously considered VA, and (b) published their reasons for refusal when asked by all participants to do so. It was in the public interest for the EIB to have done so.
IF Saab were relying upon getting VA in THEN I think that was probably too optimistic. BUT it may well be that there were no other interested parties, so the VA ‘story’ kept everybody optimistic whilst other sources of funding could be found. VA would clearly go along with that strategy to keep the flame alive.
Pedro said on August 19, 2011
The EIB deal was VERY attractive, as it funded the part of SAAB’s projects that make it a different car company when compared to others. I think it was the rest of the Financing Plan B (if SAAB even had one) that failed.
I don’t know if the EIB considered VA seriously or not. The Mafia associations and all of that make very nice media soundbites, but it could be as simple as the EIB thinking that VA and VA’s bank simply don’t carry enough muscle to be let in and that a comprehensive financing solution needed to be negotiated. As for the disclosure you mention, no bank does that. It is not in any bank’s nature to comment on such matters in public, especially when they have access to sensitive and privileged information/data. And, to be honest, the only public interest I see here is the best solution out of the only two possible solutions: either SAAB is viable or it closes down. Feeding unrealistic hopes and dreams is not the way to conduct sound business, and being able to shut up is many times the best alternative. If SAAB used VA as a ‘story’, they should have just spent that time and energy in finding new financing.
Toby K said on August 19, 2011
I have just ordered a new headlining on my 900 to celebrate!!
KarlR said on August 19, 2011
Jeff, To me its not that big deal until they habe found someone to invest.
Jeff said on August 19, 2011
Then consider it a big deal.
ursaab said on August 19, 2011
Jeff,
Is that yet a “borderline” inside information piece you are divulging? Seriously, be careful with what you say since you have already confirmed on numerous occasions that you have access to sources at SAAB. Would be very careful, as already pointed out in this thread!!!!
Jeff said on August 19, 2011
Anything I’ve said in comments only confirms what’s at the top of the page written by Tim. That’s all I’ll say. The information he’s reporting is reliable. I’m not going to go into who it’s coming from, what their motivations are, but I know their track record with information has been good so far. We just report what we’re told and try to give the most credible information page time. Tim’s not shilling for anyone, just reporting what real news he thinks is worth reporting.
ANA said on August 19, 2011
@Jeff
You like to give the impression that you know more than the rest of us, particularly in hindsight – frankly I don’t buy it. If you can’t substantiate a strong opinion then perhaps you should keep it to yourself to avoid people like me taking you for a know-it-all..
ursaab said on August 20, 2011
Jeff,
I was not refering to this post only with my comment. I simply hope that you, or the SU crew, do not have SWAN shares that you are trading at any level during these turbulent times. This whole business will be greatly lookes into, whatever the outcome is. I do not think you are speculating and that you are aware. However, keep in mind that you (the whole crew), as staff of SU, one of the most well known SAAB sites with strong historical and present connections to the company, are in a position of affecting share prices and most likely considered to have inside information.
TimR said on August 20, 2011
ursaab: I think you should leave our private financial issues to us… we are not stupid people! So please do not treat us like we are by speculating in us doing insider trading!
TimR said on August 20, 2011
ANA: I can tell you that we hear tons of things, if this means that we know more, could be true, but we also have to find out and decide upon what information we trust is real…
So yes, we do know a lot more than we tell here on SU. But as we have stated before, we will not be first with bad news, but if its good news, like the one reported on today, we will make sure that its real and then go ahead with it, regardless if anyone else has done it before, but ONLY by first consulting with Saab.
We are here for one reason only, to see the brand prosper!
ursaab said on August 20, 2011
TimR,
Where in my post did I accuse you of anything? Did you read it? I simply made a comment about inside information, and that you are considered having inside information. I even stated that I do believe you are aware and not doing anything fishy. However, thank you for clarifying in your reply to ANA that you are not an independant forum but:
a) do not post bad (negative) news first
b) get clearance from SAAB before posting news
As owner and admin can you please delete my user account, there is no way of doing it in the admin menu oneself.
ANA said on August 20, 2011
TimR
I am sure you know much more than you post and I fully appreciate that. I was making a comment about Jeff’s habit -I think I have made my point already and I will move on.
Like you I am passionate about the brand and have a deep desire for its survival.
Meller said on August 20, 2011
@Tim
Sorry if it’s out of the topic, however I found one of your sentences quite interesting:
“So yes, we do know a lot more than we tell here on SU. But as we have stated before, we will not be first with bad news, but if its good news, like the one reported on today, we will make sure that its real and then go ahead with it, regardless if anyone else has done it before, but ONLY by first consulting with Saab.”
If I’m reading this correclty it means that SU is not objective while is not eager to present bad news – onlyu those good ones. And – what is more interesting, always after consulting Saab first. Actually this sounds like you are to write only what Saab wants you to write here. Even if you are not aware of this…
And if so then a comment wrote by ursaab was not stupid – it was just a thought of one of the SU readers.
TimR said on August 20, 2011
@ Meller
Well the reason why we always consult with Saab is because good news can also damage if published at the wrong time. Which is the last thing we want. But just because we always consult with Saab does not mean that we always do as they suggest.
You have to ask yourself what is most important, bringing out news when we feel like it to get tons of visitors and at the same time destroying our good relationship with Saab and the people there or to try to maintain that relationship by letting them in on what we know and letting them have a saying about it.
Being independant means we can choose between those two options.
Saab never asked us to do this, we simply do it because we want to be good friends with them, which in my world is the right thing to do.
Pedro said on August 21, 2011
@ TimR – A very straight to the point question: don’t your replies to ursaab and to Meller mean that SU has become nothing more than one of SAAB’s Public Relations arms? I mean… You don’t publish bad news first even if you have access to them (implying you do post any good news first) and you get SAAB’s OK in publishing any information you get, so effectively you’re acting as if SAAB is the owner of SU or as a SAAB employee would have to act. I have to say I am quite disappointed.
Hans H said on August 21, 2011
Pedro: If you get information that can damage a company, do you use that information without checking if it is correct? Do you use that information regardless?
I can very much inderstand why the SU crew check their information with Saab. With so many rumours flying around, there is no need to create more.
I think TimR is doing a commendable work.
Red J said on August 21, 2011
Pedro,
maybe this is the way you like to see this, I see it differently.
We care about Saab, and a misplaced piece of news can cause a lot of damage, to Saab and to any company.
You can feel disappointed, in the meantime we do care about Saab.
Pedro said on August 21, 2011
Well, to me caring about a company/brand (be it SAAB or any other) has nothing to do with pushing any negative news under the rug until they can’t be contained anymore, and asking SAAB if one can or cannot publish some information. The verification but, I agree to; though verification and consulting with SAAB before publishing are two very different things.
Guess we agree to disagree on this one.
Hans H said on August 21, 2011
Pedro: It is also a question of trust. If you earn the trust, then you might get som djupstrupery, you wouldn’t get otherwise.
And we want that, don’t we.
Pedro said on August 21, 2011
I meant verification bit, not but. Apologies.
Pedro said on August 19, 2011
Hopefully then, the paperwork can be finalized sooner rather than later
Khrisdk said on August 19, 2011
I think this is exactly the right time to get ones feet up, recline and see if they are able to make the Puzzle work.
You know…They actually might.
KarlR said on August 19, 2011
Tolstoy Syndrom, What is indecating a scam? The almost 500million sek that they have paid in taxes? Or the same amount in salaries? Please show us evidence before writting that statement!!
Tim said on August 19, 2011
Hi KarlR, can’t you use the “REPLY” link which is directly beneath every message? In that way you messages become part of the threadview which makes it much easier to follow the conversation. Thanks!
skwdenyer said on August 19, 2011
‘Scam’ is a funny word to use. Even if every penny taken out of Saab had just gone into VM’s pocket, I believe he would currently be showing a loss on his investment in Saab. A ‘scam’ usually requires there to be a payout at the end – I don’t see this here; does anybody else?
Tolstoy Syndrome said on August 19, 2011
Just because you pay taxes it does not mean that everything else is OK. Trustor paid their taxes too. And Rover. And they both went south.
Khrisdk said on August 19, 2011
Yes
I think that everybody knows that the survival of Saab hinges on some risky and extremely lastminute deals and arrangements, and also that Saab management has been and is walking a very thin line legally.
But it dosn’t necessarily mean that it is a deliberate scam to milk the company.
No matter what , the only way we will find out if it is a scam is if everything breaks.
If Saab keeps on living, it could be a scam, but then it has been succesfull.
Tolstoy Syndrome said on August 19, 2011
True
OddJob said on August 20, 2011
What’s your problem? This is Saab, not Trustor or Rover. So far nothing illegal has happend. I can’t understand why you and your companions repeat these fake implications.Is it pure sadism or just common parnoia?
KarlR said on August 19, 2011
Tim, If you code a new layout for the mobile version of SU I for sure can do that because its not possible today!!
Khrisdk said on August 19, 2011
Couldn’t you just disable the mobile version?..I know that wPTouch is a little bit annoying about that, but it works for me.
Tim said on August 19, 2011
Ah, that sounds like a valid argument
KarlR said on August 19, 2011
Khrisdk, If SU doesnt want people to post from mobiles they can disable that. I wont swap.
Khrisdk said on August 19, 2011
OK, Just a suggestion. I don’t like the mobile layout, so I never use it
Jeff said on August 19, 2011
I write for the site and I don’t use the mobile version either. We don’t care what version you use, that’s why there’s a button to turn it off
.
Jonno said on August 19, 2011
@Many thanks for the correction, Jos. Of course, I meant August – apologies, all the excitment is getting to me. Does anybody out there really believe that a 29 August re-start is still possible? Wating another 60 days just doesn’t seem feasibe ….. the debts are piling up.
If these Endeavor guys are real – they need to act much quicker. If they are just searching for the money, as seems to be the case, we are no furthe towards finding a short-term fix …. unless they really do have some-one or several investors lined up who are about to get their cheque-books out. . .
Talladegan said on August 19, 2011
I wonder if merbanco might be lurking under the Endeavor plan?
Jonno said on August 19, 2011
can you plse remind me who Merbanco are. Thanks
Khrisdk said on August 19, 2011
The consortium represented by CJ
Jeff said on August 19, 2011
No more conspiracy theories please
I’ll let CJ shoot that one down himself. Read the post carefully, all the information you need is there.
CJ said on August 20, 2011
Talladegan
We don’t know this group and are not in Lurker mode. Hope something materializes – Saabs need both capital and some skilled and solid turnaround management. The dealer losses and credibility are a major concern as, back then, we were driven by dealers and distribution. If a solution is indeed found, the work ahead will be among of the most challenging ever. Changes will be required. We have had no contact with Mr. Muller and/or Endeavor. We mostly fly solo and have been quite open here.
All – Lets all keep supprting each other, SU, and Saab. TimR and the SU crew are doing a great job under difficult times, and are allowing a wide range of opinions to be shared. Like them, I’m told a bit more than can be revealed but, then again, I’m not in the news business and leave that to those who are. None of this is worth anything if we can’t agree or disagree as friends and remain loyal. No matter what happens to Saab, this site will still be a great source and I like that. Food for thought.
DreamChaser said on August 19, 2011
Endeavor….
slightly different spelling, but sounds really good to me;
http://i.telegraph.co.uk/multimedia/archive/01423/NASA_endeavour_1423040c.jpg
Peter95 said on August 19, 2011
This is brilliant timing by Saab. The debt agency is closing in fast and suppliers are wanting their money. I can hear the discussions with suppliers now, “We have this big investment coming, hold off with the demands and you will get your money. Otherwise we go bust and you get nothing.”
I really do hope Saab survive and I do hope that this all comes out to be true but as a supplier waiting for wages for over 600 hours of subcontract work and having been given and agreed to several payment schedules in the past I will not hold my breath. As my Dad always said” Lets see the colour of your money first.”
I am just trying to put another perspective on the news and especially the timing. I know the “leak” didnt initially come from Saab but may be VM is playing very clever here and delaying until the Chinese deal comes through.
Pedro said on August 19, 2011
A question: were any of those payment schedules kept, i.e., did you receive at least part of the money? Or was it new schedule after new schedule without actual payments being made?
Peter95 said on August 19, 2011
New schedule after new schedule, no money ever received.
I kept working for quite some time in the knowledge that it would be unlikely that I would see the money because if I left it would leave my collegues with a lot of work and they were too good to do that to. But you can only work for so long for nothing when you have a house and family to support.
Pedro said on August 19, 2011
I had more or less an idea of what your reply would be already… I totally agree with the approach you chose, I think it shows professionalism and willingness to commit and sacrifice; but of course there’s only something one can do when there’s a house and family to support.
Lots of people inside and outside SAAB have been impacted by this situation… It’s really sad to wintess this story unfold
Pedro said on August 19, 2011
witness*
Jeff said on August 19, 2011
The leak didn’t come from VM, it came from the CEO of Endeavor. Also, it was only given when he had his arm twisted when he was asked to back up what projects they were invloved in to prove a track record for their new Hawaiian alt-energy interests. You really can’t trace this initial leak to VM in any way, I tried to figure out the path too, it just doesn’t jive.
KarlR said on August 19, 2011
To all those people that think its a scam. Please remember that Riksgälden is monitoring every step that SAAB is doing and can follow trandsactions. There is also EIB that follows what SAAB does. A scam is as someone has pointed out when people make money an so far it jas been a big loss for all investors including VM.
UWb said on August 19, 2011
With the 350 m€ discussed – assuming that they are coming in pretty soon and assuming that GM will stand behind their reduction to 800 mSEK (85 m€), this will cover both for the EIB and the GM part and make SAAB fully “independent”.
Again, this might be directed from VA in the background. It has been clear that he is not wanted by many parties and he lost the opportunity to buy the properties (which for sure will be a good deal whatever happens with SAAB) and also lost the opportunity to put in the promised 100 m€ into SAAB. It can also be – to some extent – directed by the Chinese. Even if they will get the approval from the Chinese authorities, they still must be approved by EIB, Swedish government, GM etc.
With this deal going through, SAAB “gets rid of” EIB and GM, it will be open for investments from Pang-Da / Youngman and VA of up to 350 m€ again.
This is not the place to discuss the damage the entire mony process has done to the brand (sales, reputation, marketing, delayed development etc) and who to blame or not to blame, but for sure quite some amount of money will be spend to repair these damages – money that could have been spent on other more important issues…
Paul said on August 19, 2011
I think a lot of you are forgetting how hard it is to borrow money at the moment. Banks aren’t loaning money unless there is a 120% chance they will get it back (with interest) and at much lover leverage rates than previously used. Its why CEO at Ford (Mually) was a genius (or very lucky) in betting the farm before the stock market crash and getting $23 billion to invest in the car company.
This has had a knock on effect on smaller companies in that their bank managers are telling them that the promise of income isn’t good enough and that their overdraft facilities are non existent.
This explains (a) Why Saab has had some difficulty in raising money to pay off EIB, although this new news sounds encouraging because in a recession, the rich are the only ones who can take risks.
and (b) Why Saab in under such pressure from the smaller companies, because they are under pressure from their bank managers.
Another thing to consider, its partly because Saab is small and hence has a bit more of a delicate balancing act with its cash-flow, that they ended up having problems this year.
I’m pretty confident with this news that they they stand a fair shake at sorting it out.
Jeff said on August 19, 2011
Ehh, the right companies are poised for deals. Look at Fiat with their new controlling investments into Chrysler, Google with their acquisition of Motorola, HP with Autonomy…the list goes on and in different directions. Money from central banks is cheap, and the rich who control these private equity groups are flush with cash. Saab is a special case where there is a ton of value in a company poised for a turnaround. The value of Pang Da as an importer into China alone is almost a guarantee that sales will reach break-even in the next few years as production ramps back up. Saab is a fairly safe investment in a sea of crappy deals, and it’s nice that private equity has taken notice. I can’t go more into the Saab/private equity story yet, but it’s been interesting for at least the last 6 months.
No 9 said on August 19, 2011
This would make our stay at the SOC even better!
Griffen up!