This is related to the earlier story of Saab’s desire for operational finance to carry it through until it’s ownership situation is settled and it’s EIB loan application can be seen.
TTELA are now covering the story, too, and their translation seems to be much more readable. I’m no longer occupied with site admin stuff, so I can also give some more thought to things.
The situation seems to be as follows:
- Saab had several buyers lined up, all three of the primary ones were credible buyers of varying financial strength. Conclusion – Saab will be sold and the government is probably 90% assured of not being left holding the baby.
- Saab have sufficient orders to increase production and possibly thereby increase employment, but this will incur immediate costs, which they don’t think they’ve got the funds to cover (revenue from that activity won’t be seen for a while).
- It seems Saab can’t apply for their EIB loan until September 22, unless they can grease the wheels somehow.
- Their only option at the moment is to seek a loan from the Swedish government, who have allocated funds to help car companies, who haven’t paid a single ore (pls forgive my lack of dots) from this allocation but who also say they won’t lend it because the emergency car company funding isn’t actually for car company emergencies. Or something like that.
- The government, instead of stepping in and helping whilst Saab is in this short transition limbo period, they want Saab’s new owners to step in, despite the fact that THEY DON’T EVEN OWN THEM YET!!!!!!!
It may be that I’m making Saab mad once again by taking a stance on this, but from the outside looking in, it seems the only good thing the Swedish government has done for Saab thus far is refrain from killing the company completely.
It seems every time Saab goes to shake the metaphorical hand of the government, they’re wearing one of those electric shock gags in the palm of their hands.
Swedes, I know you’re going to give me a belting for this one for not knowing the internal comings and goings of the government and industry there, so fire away.
But it just seems like the government are doing every small thing that the law requires them to do, and absolutely nothing else.
A report from Reuters seems to clarify the issue a fair bit.
The funding that Saab is seeking in the form of a bridge loan is something they need purely to increase production to meet demand.
They still have enough money to get through reconstruction, albeit at a low rate of production. If they got the bridging finance from the state, they could increase production, meet anticipated higher demand, and re-employ some of their workforce that was previously laid off.
So I guess those former employees who are needlessly unemployed at the moment can send a thankyou card to Stockholm.