Letter by Victor Muller

September 8, 2011 in Archive

At saabblog.net I came across a letter aimed at the German Saab customers and fans. After the break you find a quick English translation I did.

Dear Saab customers,

This morning we announced that Saab Automobile AB (Saab Automobile) filed for reorganization at the Vänersborg court. The following information shall explain to you, what this process means, why we took that step and what it means for you as a customer.

Why have we decided to file for reorganization?
Since we reached the agreement on long term financing with Pang Da and Youngman we put our focus on securing bridge financing, that shall be used for the period until the financing from our partners from China arrives. It is important that both Pang Da and Youngman fully support that reorganization. We came to the conclusion that the reorganization process gives us the time that is necessary time, creditor protection and stability of our business while we are securing short term funding that allows us to restart production.

The voluntary reorganization we filed for is a self administrated. legal process after Swedish law and is lead by a court chosen, independent administrator, who works in close cooperation with the management of Saab Automobile. As a part of the process Saab has created a reorganization plan, that secures its existence as a profitable, competitive and independent organization.

After the court decision the voluntary reorganization is done within 3 months. If necessary, the reorganization can be prolonged to a maximum of 12 months. We are optimistic that short term financing can be obtained within the reorganization period and negotiations with several parties are in full swing. The financing after the end of the reorganization period is secured by the binding agreements with Pang Da and Youngman as of the 4th of July 2011, as soon as the necessary approvals by officials are in place.

It is our aim to continue the day to day business regarding sales and service during the reorganization process. Our employees will furthermore concentrate on their jobs, process orders and supply you with parts and accessories.

We formally apologize for the uncertainty the current situation causes. We will continue to keep you informed at www.saab.com and hope for your important support during the reorganization and stabilization of our company.

Kind regards,
Victor Muller
CEO and Chairman Saab Automobile

10 responses to Letter by Victor Muller

  1. Nice to hear from Victor. Any chance JAJ could pop back and help out for a bit? :)

    • I don’t think JAJ would step in and “save the situation”. He’s already done it once and I think that one of the reasons for his retirement was the current situation of SAAB. He could’ve seen it coming and didn’t want “the second round”. Of course those family related things he’s mentioned matter the most in his situation but I wouldn’t rule out “don’t want to experience it again” attitude.

      Well, that’s only my two cents about it. JAJ and Victor Muller have done helluva job and I sincerely hope that the court will accept the reorganisation proposal SAAB has delivered. So thumbs and toes up for that!

  2. Good initiative that this letter by Victor is written.
    It gives a secure and precise and understandable descripton of the process.
    Hope this letter is not only written for Germany while it should go to all customers.

    • I know that Saab GB and SCNA have made a similar effort, but I don’t know what is happening in the other markets.

  3. I guess today is decision day for the courts… Good luck Saab.

  4. The problem the courts have guys is that the pang da and youngman money is not guaranteed yet, VM keeps saying that everything will be fine once this money is in the bank but he cant give any guarantees thats actually going to happen!

    • I can imagine Saab has some good reason to be that confident. And the court will get more detailled information than we do.

  5. I still hope for the best, but I am concerned about the Chinese part of the deal. VM clearly states that they have filed their applications to the government, but as far as I know, Chinese say, they didn’t – or so media report. Either there was something lost in translation somewhere or I don’t get it.

    • I’d say that Pang Da/Youngman already talk with the NDRC for quite a while to make sure they submit an application that it can approve quickly.

      So even if it hasn’t been submitted yet the process may already have started in some way.

    • SpinM,
      you have to decide whom to believe. I’ve taken my decision.