Whats going on with the salaries?
November 24, 2011 in News
Victor Jensen at P4 West did an interview with Victor Muller that could explain a bit about whats going on with the payments…
The Saab wages will most likely be delayed again. When the payments are performed is unclear, Saab announced wednesday night. In an SMS to P4 West, Saabs CEO Victor Muller states that it is Youngman and Pang Da who are responsible for the payments.
- We wrote in a letter to the employees where we apologize, but we are not responsible here – its the chinese. They promised to make sure that there is money as part of the financing of the reconstruction.
- We are not able to predict when the money will come. We are awaiting news from china.
Is there any risk that the reconstruction might be aborted?
- not if they (the chinese) pay,
Earlier this week Youngmans CEO Rachel Pang said that the company together with Pang Da would help Saab pay the employees. But that money has not yet arrived at Saab’s accounts and the wages are supposed to be paid on friday, so there is a risk that the payment will be delayed once again.According to Eric Geers, the chinese are still very interested in paying the wages.
- We know that the chinese are extremely engaged and they really want us to succeed with this, so that they can become owners of Saab Automobile. We hope that this will happen as swiftly as possible.
scand said on November 24, 2011
He is responsible for the salaries, he is the owner of the company. Legally speaking, I don’t think there are any valid, mou’s , agreements or anything currently in place, are there?
Red J said on November 24, 2011
As far as I did understand it, in order to get the reorganisation approved, Youngman and Pang Da said that they would take care of the costs during the reorganisation time, but maybe this was only said after the 100% MoU.
Khrisdk said on November 24, 2011
No.
VM is still responsible.
But he is not able.
So if the Chinese wants a living Saab, they need to show some money.
And then there might be other agreements in place, like the payment of whatever Goods SWAN can sell to YMPD without breaching the responsibilities to the creditors.
I could still imagine a few
moose said on November 24, 2011
I was just about to comment the same…
A CEO of the company should not really say “we are not responsible” for paying the salaries to your own employees. As long as VM/SWAN is the owner of Saab it is his responsibility to get the salaries paid.
I guess it is fair to say that whether the employees get paid totally depends on whether Youngman/PangDa think that they can reach the deal. They won’t be throwing their money to a company which they do not think they will get, so if the money does not arrive, it is a pretty solid clue that negotiations are not going that well either.
As a side note, the statement “we are not responsible” seems to indicate that VM/SWAN has been sidetracked in a way that he seems to think that “it is no longer in my control what happens”.
aop said on November 24, 2011
I agree moose, VM seem to be pushed away by Chinese and Guy Lofalk in the negotiations.
If he had any money, he would’ve paid salaries.
Negotiations aren’t going too well, this is hardly a surprise for anyone since they seem to negotiate on their own for a while now. Let’s wait and see , maybe Guy Lofalk will convince GM to sell their technology to Chinese? Who knows ?
scottishsaab said on November 24, 2011
Victor Muller states that it is Youngman and Pang Da who are responsible for the payments!!! What a lot of rubbish it’s his company he is responsible for the wages!!!
scand said on November 24, 2011
If the salaries are not paid on the due date, then GL will probably have no choice but to stop the reconstruction.
Carlo A said on November 24, 2011
the reconstruction is dependent upon the availability of money to pay wages …
my understanding is that the MOU signed with the Chinese clearly stated that they (Chinese) would pay the money to keep the reconstruction going, while they get approval from GM, NDRC,all they other parties to close the deal …..
till72 said on November 24, 2011
“Victor Muller states that it is Youngman and Pang Da who are responsible for the payments!!! ”
Nope. He said they are responsible for the delay as they promised to finance the reconstruction.
scand said on November 24, 2011
Did P4 west misquote him?
Khrisdk said on November 24, 2011
No, not really
But Till72 is right about what he said:
“They promised to make sure that there is money as part of the financing of the reconstruction”
moose said on November 24, 2011
“as they promised to finance the reconstruction.”
I’m sure that they promised to finance the reconstruction assuming that they can buy the company. When VM points a finger towards them, he conveniently forgets to mention that he owns a company which he cannot sell.
DanSaab said on November 24, 2011
Thanks for sharing this TimR!
ivo 71 said on November 24, 2011
The original MoU has been extended until, I believe, 25 november. So the money had better arrive to-morriw at the latest. Unless they extend it again, of course.
However half-heartedly, I have to side with the less-then-optimists this time: YMPD may have promised to provide the funds for the salaries in order to keep the reconstruction going but they are under no LEGAL obligation to do so, the management of Saab is responsible. But then again, it is in YMPD’s own interest to come up with the money because if the reconstruction is terminated because of insolvency then bankruptcy follows more or less automatically and YMPD can kiss goodbye to all the money they have already provided. Which, if totalled up, is not an inconsiderable amount. And they can forget their ambitions re. Saab, too, most likely.
Ivo
Red J said on November 24, 2011
Ivo you are 100% right.
ivo 71 said on November 24, 2011
More is the pity
…
Ivo
OH said on November 24, 2011
The Chinese await the results from this Friday. If GM says yes, they will pay out wages. Will there be ‘no’ there will be no more money from them. Then the end is near.
Had the Chinese been sure of a yes, they had paid already.
michaelb said on November 24, 2011
What if GM does not say yes nor no, due to thanksgiving or they want further internal investigations after the reshuffling of European top management, or more negociations with the potential buyers?
scand said on November 24, 2011
My prediction.
GL went to meet GM to get a sense for himself what they are willing to accept.
He can only legally continue the reconstruction if the funds (promised or otherwise) are available to conduct the day to day business, pay salaries, keep the lights on etc.
If those funds are not there tomorrow, my guess is he will write to the court to terminate the reconstruction.
This will give the weekend for someone to make a concrete deal, including the payment of several million, in interim funds.
If this doesn’t happen, then saabs owners can declare it bankrupt which, I think, is preferable to an outside party petitioning for bankruptcy, as some have done so far ( before the protection).
My 10c only.
Khrisdk said on November 24, 2011
10c ? I used to be 2c. D*mn inflation
I think you are absolutely right about Lofalk
ivo 71 said on November 24, 2011
I’m afraid you are absolutely right about Lofalk ;-( .
9kCDGriffin said on November 24, 2011
so, there we are…
having read this, i think we have now come to the plug to pull. at the moment, General Morons is steady in their decision, so the trick question is: WHEN will the plug be pulled? and by whom?
let’s hope there is someone sane at GM…
aop said on November 24, 2011
Strange that the date when the new MOU ends falls on a pay day, and the money hasn’t come in yet one day before.
Also strange for someone who promisses to invest about 600 millions Euro in SAAB and want to buy technology licences from GM that can’t get 10 milion Euros to pay wages (and it’s not that they didn’t know when the salaries have to be paid).
ivo 71 said on November 24, 2011
But they are neither stupid nor philantropic. They won’t pay up another crown or yuan if they know that they will never get what they want. Would you, in their place?
Ivo
Red J said on November 24, 2011
From a press release from Saab Automobile AB on the 31st of October. I don’t if this is a binding agreement, but I think that VM is right when he says that YMPD have to make their move now.
aop said on November 24, 2011
They have commited before as well to some other things, but they probably forgot…
I think I know why they get along very well with Guy Lofalk
Red J said on November 24, 2011
The problem now is, either they pay or Saab is history, and quite fast.
aop said on November 24, 2011
It depends. I’m sure Guy Lofalk will try to end reconstruction.
The only chance they have is to have him replaced, otherwise as it looks he’s not open to anything else but his own idea.
Red J said on November 24, 2011
I don’t think that Saab has enough time to go back to the drawing board. It is either now or never.
aop said on November 24, 2011
We said this quite a few times already and still here we are…
Clearly this is the case if GL stays, that’s why I’m saying he should be replaced to try to renegotiate the deals.
And it’s quite a pitty if they didn’t prepare any plan B in case GM holds on to “No”.
Waste of time !
scand said on November 24, 2011
Pending approval from relevant parties……
As of this moment, they don’t have that.
ivo 71 said on November 24, 2011
Yep. These are the operative words: ‘pending approval from ALL relevant parties…’. Without that, or at the very least a chance of that they don’t have to invest or do anything. And GM seem to be unwilling to give an inch. Rock-and-hard-place situation.
Ivo
moose said on November 24, 2011
I’m fairly sure that these ‘commitments’ had a clause attached which went something along the lines of “if the permission cannot be obtained from GM, these commitments are void”. No-one can be expected to throw cash in to a company that you cannot buy.
Khrisdk said on November 24, 2011
I think that would be absolutely correct..as a lot of people has already quoted “Pending Approval..etc”
The question is how it will affect YMPD longterm in China if the deal fails.
That could change their stance a bit.
Or not ..
kochje said on November 24, 2011
It is really sad that every day there is only bad or negative news to be reported on relation to the future of Saab.
When will the day come that a final decision/answer will be available?
Let that day come soon while we NEED it badly.
aop said on November 24, 2011
Is time for NSC to come in, if ever they had the intention.
As it looks, nothing good is waiting down the road to China and tomorrow is the day.
Turbine said on November 24, 2011
Tomorrow will be the End Game in this saga – why would the chinese throw more money at saab if GM are looking increasingly resolute in keeping chinese 100% ownership at bay?? The chinese have surprised me with the money they have already placed – unless of course they have some agreement on collecting assets should saab go into bankrupcy. Add to this the russian investment saga and it looks increasingly likely that this could be very much history in the making- for all the wrong reasons ……very sad if not predictable
ivo 71 said on November 24, 2011
Now really would be the time for Jeffs great hunter from the West to enter the theatre of war. If he waits any longer, he might just as well stay home.
Ivo
Rune said on November 25, 2011
Guys… “In an SMS”, yet some of you proceed picking Victor’s words apart and criticize him.
SMSes are not meant to convey a very detailed and rich message exchange. It is limited to abbreviations and intended for a limited audience that understand content from the context.
I understand your frustrations, but really…