BMW Is Suing Saab Parts

We have had some posts to other threads concerning the lawsuit filed against Saab Parts by BMW and I was waiting for more of a story to unfold before just post BMW sues Saab as that is not much of a story. Thankfully I have found a fairly complete story on Nasdaq.

It would appear that the German car maker BMW is suing Saab Parts AB for 2.6 million euros plus interest for unpaid deliveries. The lawsuit was filed in the Swedish district court in Nykoping Monday.

Lennart Stahl, Chief Executive of Saab Automobile Parts AB, said the company has contested the claim in earlier contact with BMW’s lawyers and that it will go over the claim again. “Our lawyers will now go through the lawsuit carefully and see if anything new has been added before we decide what to do,” he said.

This all dates back to September of 2010 when Saab/SWAN and BMW entered into an agreement to supply and develop 4cyl gas engines to be used in the 9-3. The agreement also covered components and spare parts. A large number of parts and components were ordered by Saab and never paid for. Saab throughout 2011 did not have the means to pay for the outstanding bills and filed for bankruptcy in December.

The lawsuit is saying that Saab Parts is liable for the unpaid bills since Saab had declared bankruptcy.

However, Mr. Stahl doesn’t believe Saab Automobile Parts should have to pay for components ordered by Saab Automobile. “Saab Automobile Parts AB have not ordered or received any spare parts or components from BMW,” he said. “Why would a spare part company order components for a car model that’s not yet in production?”

Shares in Saab Automobile Parts AB were put up as collateral by Saab Automobile AB in exchange for state-backed guarantees for its loans in the European Investment Bank. The Swedish National Dept Office, the authority which guaranteed Saab’s loans in the EIB, has declared its intention to sell Saab Automobile Parts AB in order to collect Saab’s debt.

I am no lawyer but I think it will be a bit of a difficult battle to collect debt from Saab Parts which has now been taken over by the NDO. If you can go after Saab Parts when that is not the branch that ordered these parts, what’s to stop suppliers from doing the same thing? I do not think from what I read here that there is much of a case against Saab Parts and unfortunately for BMW they are in the same boat as many of the suppliers and I think it’s almost an insult to suppliers for them to view themselves differently. We have suppliers who have been affected in a very critical way who have lost business and employees in downsizing measures because of what happened and they are not getting special treatment so I would hope that BMW is treated in the same manner. As big a number as 2.6 million euros is, for BMW they will survive through this, for a supplier that number would kill most of them.

If I am wrong then this could be a disaster for the NDO and Saab Parts but I think that is a huge stretch to think that they can go after a company that was used as collateral like Saab Parts.

TonymacUK
Member
4 years 1 month ago

Presumably, if any parts were actually delivered they were never used. So why can`t they simply be returned t BMW.

xlx
Member
4 years 1 month ago

IIRC there were around 50 engines delivered and disappeared.

hans h
Member
4 years 1 month ago

Have they reaaly disappeared? Is it not possible that these engines are now sitting in prototypes for the Phoenix and other assorted secret stuff? And therefore not very easy to ship anywhere?
I mean secret stuff is secret stuff, and therefore … secret. Especially for competitors, of which BMW is one.

xlx
Member
4 years 1 month ago

it’s not exactly the article I had in my head but :

…according to TT, lawyer Susanna Norelid is representing BMW which has a claim at Saab for about 25 million SEK. This claim stems from the 54 engines that were sent to Saab in the autumn of 2010. They were sent there for testing and development, but now BMW wants these engines returned.
– they are not part of the bankruptcy documentation so we really don’t know where they are and BMW are concerned that these engines could fall into the hands of another manufacturer.

SU april

spacy
Guest
4 years 1 month ago

There are several pints here:

1. Who ordered the goods subject to the action [ie: What name was on head of the order].
1a. Was there any guarantees issued [ie: Any Promise of a third party to pay, if defaulted].
2. Where are the items & where were they delivered to. If to Saab Automobile AB, why is the Administrators not involved.
2a. Saab Automobile Parts AB say they have no deliveries.

Plus many more.

Gregory
Member
4 years 1 month ago

This makes me concerned if it does continue. Parts are already pretty scarce and I just recently purchased a 9-3 Aero. All this uncertainty makes me feel like I should sell it before things get worse.

Christof Rytz
Member
4 years 1 month ago

Since there are some Saab Clients that plan to buy a BMW (but will keep one of there Saabs) I do not think that BMW sould or will do that.

xelav
Member
4 years 1 month ago

I wish the title was: BMW is buying Saab !! When I read it with an half closed eye, it almost looks like it.

SaabKen
Member
4 years 1 month ago

I wished the title was: “BMW Is Suing GM” !

Christofer
Member
4 years 1 month ago

Well with the logic BMW is displaying here in their law suit against SAAB Parts AB, it would be at least as logical if not even more logical to sue GM.

Gregory
Member
4 years 1 month ago

That’s good to know. Things just seem so uncertain when articles like this pop up!

JH
Member
4 years 1 month ago

This just feels ridiculous – Saab Parts isn’t responsible for Saab Automobile’s debt since they are two different limited companies (called aktiebolag/AB in Sweden). Unless they had some very strange deal with BMW, but then Lennart Ståhl should know it… I’m not worried (even though I live in the town where Saab Parts is located) and I suggest that you aren’t either.

Coke is it
Member
4 years 1 month ago

Are BMW becoming the new Greedy Motors?

900 classic cab
Guest
4 years 1 month ago

Yes, the Greedy Motors from Europe 🙂 I see BMWs everywhere … It’s like a plague.

spacy
Guest
4 years 1 month ago
. Funny enough, today @ late in the afternoon, I was coming Home [in my 9K] & at the Traffic lights stopped to turn Right. Waiting at the light next to me was a small car with a young guy driving & probably his Dad next to him. As we waited for the lights to change, I glanced to my left @ the driver & just at that point his face lit up, I looked forward and coming across the lights was a customized 3 series, but boy, did his face drop, when 4 other, 3 series [yes 4] followed… Read more »
900 classic cab
Guest
4 years 1 month ago

hehe

SaabKen
Member
4 years 1 month ago

The Ultimate Dollars Machine ?

maanders
Member
4 years 1 month ago

I am no lawyer, but it sure sounds like Jason’s analysis is correct.

A large number of parts and components were ordered by Saab and never paid for. Saab throughout 2011 did not have the means to pay for the outstanding bills and filed for bankruptcy in December.

You could apply those same two sentences to many of Saab’s suppliers. Why should BMW expect special treatment? They need to wait with the other suppliers to see if any money comes back their way toward Saab’s debts from the sale to NEVS (assuming that completes).

gunteman
Member
4 years 1 month ago

But it would be refreshing to say to the naysayers, that always claimed that Saab was a liability for the Swedish taxpayers, “No, actually, it’s BMW that is costing us money”

sandborg
Guest
4 years 1 month ago

Saab Parts should initiate a law suit against GM, the Swedish Minister of Finance, BMW
for damages. The lack of support by the aforementioned destroyed the brand

JH
Member
4 years 1 month ago
For those of you who are worried that this may affect availability of genuine Saab Parts: Even if Saab Parts hypothetically had to pay this sum, it wouldn’t be a total disaster since they are a very profitable company with good liquidity. It’s a big sum, yes, but I’m pretty sure they’d manage it without any major issues. If you look at the annual report, Saab Parts made a loss last year but I’m pretty sure it was due to within-concern money transfers (don’t know the English term) to Saab Automobile (which did occur). Their profit margin was actually more… Read more »
OddJob
Member
4 years 1 month ago

Good luck BMW, this is a ridicolous case for you. Just causing badwill.

Olav
Member
4 years 1 month ago

+1!

Angelo V.
Member
4 years 1 month ago

Gee, in a perfect world: BMW would be compensated with the Saab factory, Saab name and logo, Phoenix platform—-all under the condition that they revive the Saab brand and sell Saabs in BMW showrooms! By the way, I heard again that the next 1 series will be front wheel drive.

Red J
Member
4 years 1 month ago

The BMW-Saab story could have been a nice one, but it is not.

At the end of the day we will never know who said no, BMW or the receivers.

adde
Member
4 years 1 month ago

Administrators can basicaly tell us/public whatever story they want and we have to buy it, cos we have no means whatsoever to check it and find out which companies participated in bidding process and how much they were willing to pay for assetss.
I think it has to remain a very hidden secret for administrator’s sake, if you know what i mean.

hans h
Member
4 years 1 month ago

That would be fun to watch. Good idea. 🙂

spacy
Guest
4 years 1 month ago

BMW should have put a bid in for Saab of say 2.850m euro & deducted the debt.

That way they’d have got their money & a Car plant [+ Saab] for free & their engines back!!.
Bet the Silly Sod’s didn’t think of that.

After all the gossip is NEVs only paid [if they have paid yet] about 250m Euros.

ryanonsrc
Member
4 years 1 month ago

While I can understand them for being rather miffed about the unpaid bills, it seems rather bizarre for BMW to come after Saab Parts. Surely they must be aware of the suppliers that have been devestated by Saab’s bankruptcy? I almost wonder if this another example of a corporate “the left hand being unaware of what the right hand is doing” type of situation.

baas900i
Member
4 years 1 month ago

another nail in the remains of Saab Automobile AB… little goodwill left and all up quite a sad state of affairs…

ryanonsrc
Member
4 years 1 month ago

No, Not Really.

Its pretty clear that BMW is trying to do an end-run-around on the bankruptcy process by going after a profitable, and now separate, entity. Lets not forget that the whole point of NEVS paying for the Bankruptcy estate, is to fund the settlement of Saab Automobile AB’s debts (which includes those rightfully entitled to BMW). Saab Automobile Parts AB was established as a separate from Saab Automobile AB with the purpose of isolating the distribution of spare parts from the volatility that the automaker has been faced with.

baas900i
Member
4 years 1 month ago

be easier for BMW to write it off in the yearly accounts…. unless there is another agenda….

ryanonsrc
Member
4 years 1 month ago

The only agenda I could see is their desire to get the money back and for that: I can’t blame them.

But going after the Parts company is cheating and I am frankly surprised they don’t seem to know any better.

davidgmills
Member
4 years 1 month ago

If Saab Parts and Saab Automobile are two different companies then I would think BMW could only go after the one it had a contract with. And if BMW can go after Saab Parts then I think any supplier can. So I don’t think this will go far. Sweden didn’t guarantee all of the suppliers.

Maarten
Member
4 years 1 month ago

Mabye the BMW engines aren’t lost but accidentaly shipped to The Netherlands. I couldn’t find an Enlish article but google ‘Saab’ and ‘Rhenoy’ and you will find a hit on an article from automotive-online[DOT]nl. For an amount of money they will not make public Rhenoy has purchased over 3500 engines, 4000 gear boxes, 2000 AC pumps, 2000 turbo’s, a lot of suspension parts, steering parts, starter engines etc. Rhenoy has intentions on selling the parts worldwide and they are now talking to Saab Parts in becoming an official supply partner.

Red J
Member
4 years 1 month ago

None of those BMW parts would fit a current Saab, so it makes no sense to buy “prototype” quality parts to sell them later.

Maarten
Member
4 years 1 month ago

I know they won’t fit but what if the receivers made the mistake of selling the BMW engines along with all the others. 3500 engines… that’s a LOT of shipping containers. The article states that Rhenoy had limited space to store the parts so they would have to rent other storages as well. Perhaps not ALL of the shipping containers are checked for their actual contents.

Red J
Member
4 years 1 month ago

I think the missing link here is Saab Powertrain, I think it was and is a AB(aktiebolaget) on its own. Saab Powertrain must have been the one that bought those parts from BMW, as they must have been mostly engines. Saab Powertrain is still working, developing different things for other companies (Hallo GM!!!).

The question is, Does Saab Powertrain (or the former Saab Powertrain) belong to Saab Parts, or is it part of the bankrupt Saab Automobile AB?

saabserb
Member
4 years 1 month ago

I think that SAAB Powertrain was a part of the bankruptcy estate, and is in process of selling to NEVS. So, no money from them either.
And yes, you think like a normal person, SAAB Powertrain was probably key part of this puzzle. But BMW can not chase them, so they decided to chase SAAB Parts, that is the only part of SAAB not being put in bankruptcy and having some money.

ryanonsrc
Member
4 years 1 month ago

It was my understanding that the ongoing Engineering efforts for Saab Powertrain are now operating under LeanNova. However, the business entity remains with the bankruptcy estate, which should have absorbed all liability – If not then what was the whole point of the bankruptcy process?

At this point: bankruptcy is something I have become all too familiar with. First it was our beloved automaker, then my hometown. I fear California could be next.

saabserb
Member
4 years 1 month ago
So this was the source of the whole BMW rumor in the bankruptcy roller-coaster. BMW was sniffing around in order to get either money or their engines back. So finally we know that there is no substance in the BMW take-over stories. I also think that chances for BMW getting some money from SAAB Parts is minimal, almost zero. There is no logic in their claim, and Sweden is not USA where you can stage evidences and impress the jury. But they chosen to fire this shot. They probably anyway have an army of layers rolling thumbs, so why not… Read more »
Pedro
Member
4 years 1 month ago

BMW reportedly took a look into SAAB before GM’s bankruptcy and decided to look elsewhere. Pretty much standard business development work…

3cyl
Member
4 years 1 month ago

It appears that BMW has decided there is more to gain in suing than owning.

scand
Member
4 years 1 month ago

If you can sue a surviving entity of a bankrupt group, for an unpaid invoice from a different part of that group, then by the same argument, Spyker could be held liable.

It wouldn’t surprise me if a number of preemptive lawsuits get filed against them, just in case they did prevail against GM, and got a windfall.

This could very easily just turn into a whole mess of suits and countersuits

spacy
Guest
4 years 1 month ago

I am surprised the Administrators have allowed this to happen with no comments.

Angelo V.
Member
4 years 1 month ago

I’m not the least bit surprised. These Receivers didn’t exactly distinguish themselves as the second coming of Einstein.

3cyl
Member
4 years 1 month ago

Is SAAB Parts positioned well enough financially to absorb the cost of defending this? suit?

zippy
Member
4 years 1 month ago

I was under the impression that the engines had already been returned to BMW.

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