Funding issues still haunting Saab?

I covered an article at earlier this month, where they reported that Saab might run into money problems if they have to wait until September to secure their EIB loans.
There were several other reports to contradict this, but the story still lingers.
Today, are covering it again, though now with quotes from Saab’s head honcho, Jan-Ake Jonsson:

Saab needs new money in the summer to go up in production. It says CEO Jan-Åke Jonsson to GP from Almedalen.
Under the heading “What is the future for the Swedish car industry”, the Saab’s CEO Jan-Åke Jonsson and Industry Minister Maud Olofsson State Jöran Hägglund to discuss on a plank of Almedalen today.
But really, they have much more drastic – and [important?] question – discussions to bring in a concrete plan.
It is about Saab’s very near future.
– We would have to go up in output relative to the orders we have,” says Jan-Åke Jonsson when GP meet him in Almedalen.
But there is no money to do it.
Therefore Saab is trying, by all means, to accelerate the loan process for loans from the European Investment Bank, EIB.
But Saab is also negotiating so-called överbryggnadslån, or emergency loans, directly with the Swedish state.
– We have discussed it, but not received a hearing so far, says Jan-Åke Jonsson.
Saab, together with the new owners, for discussions with Riksgälden and EIB to try to speed up the process to obtain clearance from the EIB loan earlier than September 22. It is the date mentioned as the earliest EIB’s board could decide on the loan.
– The EIB has a board meeting in July We are working with the EIB to see if we can not move the decision until July,” said Jonsson. We have not excluded it.
– ….it allows us to adapt our operations so that the money is enough.

Now, we should bear in mind that earlier reports told us that JAJ and Saab’s administrator, Guy Lofalk, both stated that Saab had enough money to get them through to new ownership.
It may be that increased orders mean increased costs without revenue flowing through in time to cover those increased costs. A basic cashflow problem.
It should also be remembered that Saab can’t use EIB money to cover production costs. This money is earmarked for investment in new technology.

Thanks to Per and Magnus!

Comments are closed.

By continuing to use the site, you agree to the use of cookies. more information

The cookie settings on this website are set to "allow cookies" to give you the best browsing experience possible. If you continue to use this website without changing your cookie settings or you click "Accept" below then you are consenting to this.