It may well be crunch-time for The Koenigsegg Group.
The news of the Share Purchase Agreement being signed was welcome, but when CvK came out and stated that the government needed to fund a large portion of their business plan via a loan, he may have bitten off more than he could chew.
Whether you, I or CvK think this should happen or not is of little consequence because the Swedish government has since come out in force stating that they would do no such thing. Joran Hagglund’s said it, Maud Oloffson’s said it and the PM, Fredrik Reinfeldt left little room for misunderstanding when he addressed the issue yesterday:
“I want to give a very clear message: this is not our line. I am not prepared to pledge Sweden and act venture capitalist for the wealthy”.
TTELA have an editorial today stating that Koenigsegg might have made a rod for their own backs with the unclear messages they sent out this week.
On the one hand, they felt confident of building a good, progressive and profitable company with Saab. But on the other, they didn’t have enough money or didn’t want to risk their own money to make it so.
Instead of the cars and the future, the double-message has become the focus of the Swedish media in a one-step-forward-two-steps-back kind of way.
The Saab today goes out of its six-month reorganization and that could have been the positive news that the market needed to have new faith in the company. Instead the announcement was drowned out by new doubt on Koenigseggs financial ability.
In the article I posted last night featuring quotes from both CvK and Bard Eker, CvK mentioned that all parties in the Koenigsegg Group had people they may be able to tap for funding of the business plan, if required.
Judging by the government’s tone and the subsequent kicking Saab are getting in the Swedish press, I think the time to tap those people on the shoulder might be now.
It’s my understanding that the biggest issue for Saab is to secure the EIB loans next month. To do that, they need to convince the government that it’s a loan worth guaranteeing. It might just be me, but I tend to think that getting everyone on-side might be a good idea.
I think the Swedish government should be doing more to help Saab, but in the absence of that help, Koenigsegg needs to make sure they do everything they can to secure the one bit of help that’s actually been offered – the EIB loan guarantees.
If Koenigsegg need to have more of their own resources at risk, then so be it.