FKG: Reconstruction is the way to go

I stumbled across an article from Ny Teknik which points out why in Saabs case reconstruction is to be preferred over bankrupcy. It’s the better solution for all parties involved. Worth mentioning that this piece was written by Frederick Sidahl, CEO of the supplier organisation FKG.

Early on we, FKG – Automotive Suppliers trade association of automotive suppliers, the position to support a reorganization instead of bankruptcy for Saab Automobile. As an industry organization, we work to ensure that our members get the right business opportunities and bring their collective action in the larger context. Along with legal expertise in insolvency law was judged that the reorganization of Saab and not bankruptcy was to advocate for our members’ sake.


A very interesting part is that one as it contains a remark on the licenses:

We do not know in detail the patents or licenses that Saab and GM owns or has rights to in this business. However, we know that it is common that license rights can not be transferred. A restriction that is enforceable against a bankruptcy estate, which can significantly reduce the estate value. We do not know fully what company owns any Saab patents – they end up in this case outside the estate?

A bankruptcy, and then a new procedure takes time, uncertainty surrounding the brand, volumes fail where everything turns back to the suppliers.

Therefore FKGs position clear – rather continuing reorganization than bankruptcy. For us, and the Swedish automotive dynamics, Saab is an important part.

There have been some voices that said Saab should go through a bankrupcy and then try to start new, free from all old burdons. I disagree and I concur with Frederik Sidahl, that bankrupcy proceedings will cost time and confidence from suppliers, dealers and customers. Most likely Saab would not rise from such a scenario again.

But it is definetely good to know that the FKG still see the reorganization as the way to go and stand behind the process.

saabtec
Member
4 years 10 months ago

Bravo!

JST1981
Member
4 years 10 months ago
Considering the current 9-3 we cannot talk about technology which GM can be keen on keeping an eye on regarding the age of the car. As far as 9-5 and 9-4X are concerned GM should put a price tag on their so called technology – cause imho money is the cause what it’s all about. Two years ago, GM wanted to shut down Saab rather than selling it. In an act of pure unselfishness they sold Saab to VM and the Spyker crew. Two years later a stronger New-GM sees the opportunity to make money again with the same package.… Read more »
Coke is it
Member
4 years 10 months ago

Hasn’t the FKG been way more positive since the new CEO was appointed?

Let Saab fly! πŸ™‚

ArchDandy
Member
4 years 10 months ago

Yes, I agree, but Fredrik has worked at Saab. πŸ™‚

Saabim
Member
4 years 10 months ago

FKG has token best decission. Congratulation.

sandborg
Guest
4 years 10 months ago

Gosh this story is endlesss…it goes on and on and on

Jonas Axelsson
Member
4 years 10 months ago

Is the Pope Catholic? Does Maud schizx in the woods? What is the sound of one hand clapping? Do car parts builders want to supply parts to car makers? On tomorrows edition of SU, one of these controversial issued will be tackled in a no-holds barred industry expose.

πŸ™‚

Baver
Member
4 years 10 months ago

Hey, my post was removed. Why? This was a serious question.

Baver
Member
4 years 10 months ago

Could a moderator send me a private message about my post, please?

Jonas Axelsson
Member
4 years 10 months ago
The second part is quite interesting and is really can make any deal spin out of control. Follow it all the way through. How many patents and technologies does GM use under license from other companies? A dated example may be something like even the variable speed windshield wipers. Chrysler held that simple patent and GM paid to use it but Ford didn’t and it was annoying to buy a new Ford with 2 speeds on the wipers. GM was also using the automatic 3 speed transmission that was the legendary Chrysler Torqflite (sp). How many metals technologies with the… Read more »
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