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
Audun said on August 19, 2011
I think that when this situation is sorted out, the production is running again and the the new partners are in there will be less need to repair the situation from the past.
I think that the Deal and these new partners joining in will a huge fix of the situation that the whole auto industri, dealers and the customers will be aware of.
KarlR said on August 19, 2011
SAAB is gone, Holmgrens bil is just the start! Many more will follow!
Khrisdk said on August 19, 2011
Probably, unless something happen.
But Saab is still not gone because of dealers leaving.
They will just have more uphill battles to do if they survive
Pedro said on August 19, 2011
If more dealers follow Holmgrens, it could (potentially) be a very big problem as SAAB ans the other OEM need the dealers as their sales channel. On the other hand, it is just 1 dealer jumping ship at this point.
Jeff said on August 19, 2011
Karl, I know you support Saab from all your other posts…but could you please refrain from the: “Saab is doomed! SAAB is gone, SAAB is going to fail!, I’m through!” comments until there’s a resolution? Just hold off a little longer until this mess is sorted, cool?
Chris Carrier said on August 19, 2011
Here here. It serves no purpose but to wallow in pity.
Tripod said on August 19, 2011
KarlR;
Again a quick bold statement based on just one single occurrence.
In post at Life with Saab, Arild mentioned an article in SvD.
http://www.lifewithsaab.com/2011/08/swedish-dealers-keep-faith-in-saab.html
According to that one, they had talked with only five dealers; Holmgrens was the one that didn’t focus on Saab. So this didn’t come as a surprise. That doesn’t say that everyone will follow, far from that. But what do you say? “SAAB is gone.” Wow!
I agree with Jeff, Karl, you sway from this to that, often saying “now they are doomed”, or “SAAB is gone”. They are not, and you have been wrong earlier. I understand it’s difficult to be optimistic, but if you feel like that, but wish for the best outcome, you should consider what you write.
And I agree with Khrisdk, below, the announcement is extraordinarily harsh. If I would be harsh I could say,: what to expect from a CEO that is a high school dropout.
sonett71 said on August 19, 2011
The talk from the boss of Holmgrens Bil is a mess. He don’t know what he talk about. I’m happy he left and he can drive his BMW how long way he want. Bye, Bye Holmgren… (I don’t want him back).
aop said on August 19, 2011
Something’s cooking…. and we’d better find out soon what it is
Mats G said on August 19, 2011
Share prices are up more than 40% in the last few minutes. Something is going on….
Pedro said on August 19, 2011
It was 19.4% up from yesterday’s closing at 16:38:29 CET and now at 16:40 CET is just 11.9% up from yesterday’s close. There was a huge surge in buying after it hit the intraday bottom (interesting) but it’s fading. And the news about that dealer not selling SAABs anymorew ill surely have an impact as it is said to be one of the largest dealers in Sweden…
Nate 9-3 said on August 19, 2011
I wonder if VM was in Brazil regarding this deal? I know that much of their infrastructure is build on ethonal production and usage. Where do Youngman, Pang Da and VA fit into this?
Jeff said on August 19, 2011
Note where Endeavor is based.
Carlo A said on August 19, 2011
????
NYC ???
Nate 9-3 said on August 19, 2011
From the sounds of it, it sounds as if they are US based. I was thinking that perhaps they might be talking with Brazil’s government. I know that Brazil’s ethonal of choice is sugarcane-based while SAAB uses corn-based. I should have been more specific as I wondered aloud.
Frank Wulfers said on August 19, 2011
http://translate.google.com/translate?js=n&prev=_t&hl=en&ie=UTF-8&layout=2&eotf=1&sl=auto&tl=en&u=http%3A%2F%2Fwww.beurs.nl%2Fnieuws%2Fbinnenland%2F3118510%2Fsaab-beslaglegging-is-fout-van-bank-tegoeden-weer-bereikbaar%3Futm_source%3Drss%26utm_medium%3Drss%26utm_campaign%3Drss%26utm_source%3Dtwitterfeed%26utm_medium%3Dtwitter
GrumpyGriffin said on August 19, 2011
The share price has been going up and down like a cheap whores underwear, people jumping in on a rising stock and then selling when they feel it has gone as far as it will go, more shares on the market, price comes down, lets face it at well under a Euro a share it’s now virtually a “Penny Share”
KarlR said on August 19, 2011
Pedro, Holmgrens has 7 stores in Sweden.
Khrisdk said on August 19, 2011
How many Saab dealers are there in Sweden in total?
Khrisdk said on August 19, 2011
Just asking, because here 7 dealers leaving would mean -2 left as far as I remember
I would imagine that the numbers are a little bit higher i Sweden
Pedro said on August 19, 2011
Seven? All multi-brand, or all SAAB?
Nissi said on August 19, 2011
Holmgrens claim themselves to have been one of the 3 – 5 largest resseler of SAAB in the world
Pedro said on August 19, 2011
That letter/announcement is actually VERY strong worded, at least reading from the (crappy, I admit) Google Translate translation:
1. “But – with the trend we saw last year, we can no longer proud to represent the brand. We do not know that we can – or wants – to stand behind Saab’s behavior when time after time does not stand up to its commitments to customers, distributors and suppliers of such company’s business plans, affordability and ability to deliver custom cars.”
&
2. “Taking out large bonuses for the work that every responsible owner with fact but compensation has to perform while not paying wages to their employees on time or do the right thing vis-à-vis their suppliers also feels incredibly strange to a Småland entrepreneurs!”
Again, these are VERY strong worded sentences and paragraphs. I surely hope the overall sentiment among SAAB dealers worldwide is not this type of sentiment.
Khrisdk said on August 19, 2011
The translation is pretty OK.
It is extraordinarily harsh for for just dumping a contract.
I just think that they wanted to make a very moral impression and get some airtime at the same time they announced their switch over to dealing BMW.
But that could just be my impression.
Pedro said on August 19, 2011
Could be.
Cokeisit said on August 19, 2011
They sell all kind of cheap cars like Kia, Holmgrens will not be missed.
Pedro said on August 19, 2011
Actually, those cheap KIA cars you so much disdain towards might be keeping a lot of Holmgrens employees away from the unemployment lines
Cokeisit said on August 19, 2011
I prefer to help Saab employees and Svenska Bils employees to keep their jobs by buying a new 9-5 SportCombi.
Do you think I should cancel my order and buy a Kia instead?
Toby K said on August 19, 2011
Pedro irresepctive of whether Saab survives or not, if I were you i’d cancel my order for a Kia!
Pedro said on August 19, 2011
Very funny, but I have no order outstanding for a KIA, even though I do think the KIA Soul is an interesting car…
What I meant to say is that in the midst of all this discussion, showing disdain for other car brands and the people that sell them in Sweden (themselves Swedes, who need jobs and have families to support just as SAAB employees’, contractors’ and dealers’ families) does not seem to show the same kind of consideration and respect I believe they all equally deserve. It serves no point to discuss KIA’s price points in this context, especially since Holmgrens, by selling BMWs and MINIs seems to be able to have a balanced (naturally hedged) portfolio of lower priced and higher priced brands.
SouthSider said on August 20, 2011
Kia is moving up:
http://www.leftlanenews.com/frankfurt-preview-kia-sports-sedan-concept.html
OddJob said on August 20, 2011
KIA is the essence of crap. I rather buy a bicycle.
Pedro said on August 20, 2011
LOL, you’re right of course, but trying to use common sense on here can be hard sometimes.
Off topic, but the Koreans have made great inroads into the European market and have been continuously improving: slowly, perhaps, but very steadily. To me Hyundai/Kia is the biggest threat to the dominant automakers.
Pedro said on August 19, 2011
If you have an order waiting in the orderbook, then keep it there.
Cokeisit said on August 19, 2011
I will, looking forward to getting it in early October
Pedro said on August 20, 2011
I know I am a skeptic, but I really hope you get the wagon as that would mean these months and all of this mess would be over.
zippy said on August 19, 2011
Just woke up. Read this and have decided not to get overly excited untill I see the cash. The news about the dealer in Sweden is becoming a bit of an issue if production doesnt start asap.
TonymacUK said on August 19, 2011
Stories, comments, more stories, more comments, – but NO cash!
Khrisdk said on August 19, 2011
Talk is cheap
Especially amongst commenters
Cash takes time and are dug out in silence
TonymacUK said on August 19, 2011
But time is a commodity of which SAAB are short.
GrumpyGriffin said on August 19, 2011
I think that Saab feels its traditional markets are screwed for some years to come and that it will be looking east for the majority of it’s future sales, I think the UK will recover a little quicker than the rest of Europe as we seem to have shorter memories, but Sweden and the US will probably take the longest, in Sweden’s case because of the fact that they have lived with every little twist and turn of this sorry saga!
Iiari said on August 19, 2011
Interesting idea Grumpy… The thought that Saab has probably internally decided that it’s traditional markets are “lost” for now (especially the US, see more below) would actually make a lot of sense in financially planning for the future. To say, “Well, lets put these numbers together with projections that assume minimal US and European sales for the next 2 years and more Russian and Chinese sales” may be the only way this is going to work and would actually lessen my anxiety. If Saab can be saved with a business model assuming a “lost” US market for now that works, I’d feel much better about that plan’s prospects for success.
Here in the US, Saab essentially doesn’t exist right now. That’s obviously bad on one had, but good in another since, outside auto-nut blog circles, no one knows or cares about Saab’s recent problems and you’re only a great product intro away from everyone forgetting about your prior troubles (witness Chrysler’s impressive redos of its lineup).
So, essentially, Saab will need to spend the next 18 months deciding what it will be in the US (and more importantly, deciding who their buyers are since, in the US, people buy cars according to what message about themselves that vehicles sends to the world) and then promoting that idea. Then, they need to relearn how to do successful vehicles launches when the next 9-3 comes.
Apparently Tim Colbeck spoke to the SOC about their US strategy. I’d love to hear what that was.
PS: Regarding what this thread is about? No news there. Saab wants to shed the EIB loan? We know that. Saab having other help this to do this? No shock, would be surprised if they didn’t. No news of new money? Then no news period…
katar1na said on August 19, 2011
“Traditional markets are screwed” – yes, if you mean the “potential” ones. But the loyal ones will be there!
But it will probably not be enough.
I do also believe its the East market that will greet the best car in the world. And actually I believe West Europe + USA are dying markets over all.
The East is the new West.
Better take that russian language course…
Henrik B. said on August 19, 2011
Better that a course in chinese…
Cheers!
Jeff said on August 19, 2011
I honestly think the US will see a quick turnaround once they can get the messaging right. Once this mess is more clearly sorted, we’ll launch our fun little project to help that out.
baas said on August 19, 2011
Victor Muller sold have of his shares last Monday and is suspected to have sold the rest today. The rats are leaving the sinking ship.
Pedro said on August 20, 2011
Can I find that info in the Euronext website?
turbokalle said on August 19, 2011
Anyone else that misses JÅJ:s down to earth take on all this. No disrespect to VM what so ever. The man (VM) really deserves our support and respect, but JÅJ would for sure be valuable at this moment.
Jeff said on August 19, 2011
Don’t you feel like he’d just be silent and repeating the same corporate message as Eric Geers?
Pedro said on August 20, 2011
I liked his substance-over-style attitude. But he’s not in SAAB anymore, so gthe only curiosity to me is to know his opinion on how the story is unfolding.
turbokalle said on August 19, 2011
Mabye. But you would know that he was there, in the middle (of what I consider a mess) keeping track of things. I’m sure you know what I mean. The guy’s a rock!
Iiari said on August 19, 2011
But didn’t he have a hand on the tiller that entire time this “mess” was developing? Just sayin’, you know…
Khrisdk said on August 19, 2011
Yes he did.
Now this is not to be pointing fingers at anybody, this is pure speculation on my part, and it is said in that unbearable light of 20/20 hindsight:
JåJ should have retired much much earlier and given room for a CEO geared absolutely towards Change management that could have made the necessary changes to the organisation and kept VM at doing what he does best, being a idea man, without too much input on how daily business was run
Pedro said on August 20, 2011
It can also be that it was decided that JÅJ would work for SAAB only during the transition from GM to independent. Or that he wanted to stay long-term but could not work with VM. Or that he simply decided to retire! Many possibilities, so speculation about the actual motives for his departure is all we can do.
I’d still be interested to hear/read from JÅJ about all of this, though.
Khrisdk said on August 20, 2011
I wasn’t speculating about the reasons, only speculating and stating my opinion about when I thought JåJ should have retired.
I will never guess at the reasons on this forum. I have my own place for that
Hans H said on August 21, 2011
I hope that somebody (Swade?) writes a book about all this. It will be yet another exciting chapter in Saabs history, whatever the outcome. And then we can read about how JÅJ felt through all this.
If I remember correctly, these near disasters happen quite frequently for some manufacturers. Especially top-notch ones like Aston-Martin, Maserati and Lotus seem to dip every now and then. So Saab is in Good Company.
SAAB-CAAB said on August 19, 2011
Has anyone noticed that VM has recently sold 3.348.039 regular shares Swedish Automobiles, reported to the Dutch authorities on the 15th of August.
At the same time he reveived an equal number of stock options.
Meaningful explanations anybody? Has the boss lost faith himself?
skwdenyer said on August 20, 2011
You can criticise him for this if you first find out where the money has gone. There are many possible options, and most of them don’t involve keeping it for himself. I’m not blind to the possibility that the worst should be feared, but I’d like to know more first.
Do we even know where these shares have gone? For instance, if he has simply taken the opportunity afforded by a depressed share price to move the shares offshore, that would seem sensible from a purely tax-efficiency perspective.
As I say, let’s hear what he has to say before passing judgement.
SAAB-CAAB said on August 20, 2011
if he transferred to some kind of tax haven, he still owns the shares would you not agree? And that is what this overview is about.
Apart from the ethical side of your proposed tax evasion, I think your suggestion is nonsense as he would still own the shares and that has to be reported to the AFM..
I was not criticising VM or passing judgement, I was asking questions. That’s what intelligent people should do.
I think you were in a sense you were passing judgement in your answer…
Khrisdk said on August 20, 2011
There are some answers below from Swade
Carlo A said on August 20, 2011
Are we sure the shares have been sold on the market? This would also contribute to depress the stock price which is also working against SAAB (re: GEM mechanism) …
Certainly not a good sign …
gawdlpus said on August 20, 2011
You could look at one of two ways. As far as I understand the DEA cannot seize funds from foreign bank accounts so either;
a.) He’s done to make sure there is enough money to pay the wages if DEA does pay the creditiors from the money in Sweden already set aside for this.
or
b.) He’s feathering his own nest.
You decide.
Khrisdk said on August 20, 2011
Yes
And Saab has money lying around. They just paid the around 9,2 mill SEK for taxes from the latest delayed wages.
SAAB-CAAB said on August 20, 2011
these few shares are peanuts in terms of dillution. The amount that GEM is dumping now is much higher. Not to mention the total amount they could be asked to dump into the market. At the current stock price, eur 150 mln is quite a few share. When you compare to a number of around 23 mln before this party started.
Beside that also the Chinese will receive a share. Who knows who else will be involved in the future. It will all lead to major league dillution for today’s shareholders. The current shareholder already paid the wages last time, the following emission will pay for post-it’s and toiletpaper. From a shareholder perspective, SWAN is a terrible investment. For a daytrader it may be different.
And Khrisdk: if SAAB has money “lying around”, don’t you agree they should better pick that up and pay what is due? If money is around, I think it is in insignificant amounts. Shortage of cash is not the reason for todays crisis but it is making the issues acute.
Khrisdk said on August 20, 2011
They are
Swade said on August 20, 2011
From my enquiries about it, it’s related to the GEM funding, part of the mechanism that enables it to proceed. The shares are transferred to GEM (hence the options retain by VM’s holding company) for the pricing period under the share issue agreement. Once that period ends, they should be transferred back. My info is that we’ve already had enquiries about this from news services and have answered accordingly.
So, no, the boss has not lost faith himself. It’s just part of the process.
gawdlpus said on August 20, 2011
So the funds are just resting in VMs account are they Swade??
Have you ever seen the sitcom Father Ted?
Swade said on August 20, 2011
I didn’t say anything of the sort. Why would you infer that?
Tenaci (VM’s company) owned the shares, transferred them to GEM but retains options for them and they’ll be transferred back once the pricing period according to the deal is finished.
SAAB-CAAB said on August 20, 2011
So VM sold these shares to GEM and in return he has the right to buy them back. Since a stock option represents a right but not an obligation, he does not have the obligation to buy back the shares.
Since the GEM dump of shares will have a depressing effect on the stock price, VM basically “went short” in his company. He was paid “now” and can choose to bay back later at the stock price agreed in the option or buy at market value. At a probably substantially lower price due to the enourmous dillution caused by the stock emissions…
This way he makes money by the decrease of the value of SWAN.
I am not convinced.
Khrisdk said on August 20, 2011
Frankly you don’t have to be.
If this is the solution for the GEM “financing” the other tings are a sideeffect.
It could be interpreted any way anybody wants
gawdlpus said on August 20, 2011
Sorry no offence meant.
If you had seen Father Ted you might have got the jokey reference & you’d have seen the funny side. I’ll try and keep the witty asides to one side in the future.
GrumpyGriffin said on August 20, 2011
Gawdpus these are Scandinavians, our sense of humour is not something they appreciate, most of the posts on this Blog are now pure flights of fancy, until there is some real money in the kitty (UK slang) we are all wasting our time coming up with these wishful scenarios, I am now finding this Blog really infuriating but sadly I am becoming addicted, its got that bad that I am going to watch Celebrity Big Brother as my mind is to now numb to appreciate anything that has any intellectual value!
God Help Me
GG
Niklas G said on August 19, 2011
I think VM & guys are doing exactly the right things. 100 % focus on securing the necessary funding and keeping development of 9-3 running (a sure must for future funding). 0 % focus on ironing shirts and talking to the press before there is anything new to say.
But oh what a drama… 1 % of it would be more than enough…
If Saab and VM had been a US company and citizen, Hollywood would probably have started preparing for a movie about it long ago…
(Or perhaps not, but still, oooh what a drama…)
odd said on August 19, 2011
Holmgrens do not sell saab anymoore
Carl-Henrik said on August 19, 2011
We stick to the topic of the post. And yes, it has been mentioned before in comments here somewhere…
Khrisdk said on August 19, 2011
Yup, we noticed.
Look above ^
terry9000k said on August 19, 2011
.
Nothing here, helps the situation at this moment.
None of this new, it’s just that we’ve only just been told it.
I am finding it difficult (for once) to actually say anything good or indeed bad about it all.
I have read all 234 post here & it’s like a roller coaster, all the way & all the way down again….So what’s new!!.
I just cannot see when this car company will ever start up again & as Holmgrens say ^^, Promises, promises, that just keep getting broken…..
It this is ‘the deal’ then god forbid that termology, VM has been searching for money for Months, so he’s just got someone else to do it for him.
Someone,p lease email me, when it has some SOLID foundation to actually says something.
OddJob said on August 20, 2011
? !
Maybe you should read the article once again
Alexsaab said on August 19, 2011
Forget Holmgrens! When the Deal get sorted, Saab will sell more in China, Russia, and Brazil in a day than Holmgrens do in a year! The key for Saab to get volumes up after the restart of the production, is to get in to theese new markets. Sales in Sweden and other markets will follow eventually..
odd said on August 19, 2011
That will never happen, someone hoe knows
odd said on August 19, 2011
Alexsaab are you livingi in a dream world ?
Khrisdk said on August 19, 2011
Pleae inform us what you know
Alexsaab said on August 20, 2011
The break even point for Saab is 80 000- 100 000 cars a year. If the deal with Pang Da gets approved, and I think it will, the Chinese market will soon be the biggest, and the old markets, that have lost confidence in the brand, will catch up! Saab could potentially be quite profitable in a few years, when you take into account that they used to sell 120 000- 130 000 cars just a few years ago.. The problem right now is to survive for another couple of months more. VM and his team know that, and the last developments shows that this is in the pipeline.
OddJob said on August 20, 2011
Spot on!
TTAero said on August 19, 2011
Anyone heard of the world famous blog community supporting a very special brand?
I really think that community is faling big at this moment! And every oddtroll jumping up and down doing what they do best. Trolling.
The last one keep repeating the same thing in various threads to get as much attention as possible.
Khrisdk said on August 19, 2011
Yup
I don’t think he bothered reading the comments policy
Let him Jump
Leeloo said on August 20, 2011
Sure, on with the blindfolds, head in the sand, ear plugs, and sing lalalalalalalala…
OddJob said on August 20, 2011
Lowlee, I believe you are in the wrong Forum.
This is a Saab enthusiasts site.
I think it would be wise of you to google on monomania, paranoia, narcissism – I think you will have answers to many of your quesions there.
Rogge said on August 19, 2011
Ho is leaving in the dream hmm
i think you must see at the world is so much bigger to day
and them new market is weary expensive
Hans H said on August 20, 2011
How is it that good news such as this, gets twisted in the most vicious thread I have read in a long while? With people threatening to leave and with trolls writing gibberish.
How did this happen?
Are we not enthusiasts?
Or are we also just paranoid news junkies who couldn’t take more news anymore? I hope not!
Can we please resume normal commenting? Please?
Tomorrow I will try out a replacement for our old 9000.
Chris Carrier said on August 20, 2011
Trying times. Too bad all that matters isn’t arguing whether the name “9-3″ should be continued.
skwdenyer said on August 20, 2011
As I’ve said a number of times, disciples will tear themselves apart when asked to face adversity without leadership and guidance.
Sadly, neither SU nor Saab are able to provide that right now. There are many reasons for why that might be so, but the danger is that the churches may be empty when normal service resumes
Khrisdk said on August 20, 2011
Wouldn’t that depend on ones personal inclination and perception of Saab?
A lot of club members of the various clubs might be worried and nervous, but I don’t really see much on the Club sites regarding the current situation, so I doubt that those people will step away from Saab just because of Saab dying as a car manufacturer.
They are into the cars, and would like to see Saab existing, but it is not the reasons behind their interest in Saab
jouni72 said on August 20, 2011
But when leadership is invisible and times are tough, You have The Spirit left… Yes, Saab-spirit
That leads You trough the difficult times. Better days are ahead.
Hans H said on August 20, 2011
Yes. And I just bought a 9000CSE2.3T.
silversaab said on August 20, 2011
If production does not start on the 29th August then the dealers in the UK havea real problem on their hands. Alexsaab is correct in what he says regarding future markets.
ANA said on August 21, 2011
i think there is no chance that production will start on 29th August.
saablover said on August 22, 2011
Production will not start on the 26th august , this is impossible and very hard for all the SAAB dealers !!!!!!