Morning Snippets: Annual Shareholder’s Meeting Day

On the day of the Annual Shareholder’s meeting in Holland, there’s reason for cautious optimism of production starting back up in about a week. But first Victor Muller faces a firing squad from Dutch investors association VEB. Meanwhile, BAIC’s VP Mr. Dong, claims he’s not too worried about Saab’s plans to compete with a new MJV, but just comes off sounding like a jealous ex.

From TTela (English translation), a story about the he said she said going on between the government, GM, and the EIB. Hakan Skott is left wondering why the government can’t just take an official stance on Antonov. The government says it’s GM’s fault and their opinion doesn’t matter. Who’s to blame?

__________

Well, if Victor Muller and Vladimir Antonov’s teams can do anything about it, their opinion won’t matter long. From Ola Kinnander of Bloomberg in an interview with Victor yesterday:

“I’m very confident Pangda is well-equipped to ensure the regulatory approvals will be obtained,” he said.

Muller also said a top priority in the coming months will be to try to secure a commercial loan to repay funds to the European Investment Bank.

The EIB, the European Union’s lending arm, agreed last year to lend Saab 400 million euros, of which 217 million euros has been drawn. The loan, which is guaranteed by the Swedish government, comes with conditions, including restricting use of the funds for specific engineering projects.

“After the Pangda deal is implemented, my focus is going to be finding a new CEO and getting a commercial loan to take out the EIB,” Muller said. “We cannot be dependent on the government or the EIB for whatever we do with the company. We have been paralyzed, we cannot move left or right.”

From The Detroit News: http://detnews.com/article/20110518/AUTO01/105180327/Saab-to-restart-assembly#ixzz1MmfcNezQ

 

__________

In another story from TTela (English translation), Gunnar Brunius gives an updated estimate of next weekend for production to start. Plastal, the company that makes plastic bumpers for Saab, was ready to lay off 50 employees before the Pangda deal. There’s hope that won’t be necessary, and a number of other suppliers are ready to negotiate deals once longer term financing terms can be agreed to.

However, all is not well with every supplier. Lear, who makes the seats we all love, served layoff notices (English translation) to all of it’s employees (I’m not sure how that works really, what’s left of the company in that scenario?). Negotiations are under way with the union to manage the transition, but the company hopes that the layoffs never actually happen and that they receive payment from Saab. Let’s hope that they don’t have to follow through with this.

__________

Meanwhile, Victor Muller faces some angry shareholders from dutch investor group VEB. In a story from di.se, they explain how they don’t feel that Victor has quite earned his bonus. Perhaps they think he hasn’t put in enough hours on the job and should give up more sleep?

“The bonus is disproportionate. Given the large financial losses and poor sales, we wonder what objectives have been achieved that may justify a bonus,” said (David) Tomic (an economist with VEB).

Most people know my and other SU writers’ opinons on this subject– no Muller means no Spyker or Saab. The bonus comes out to around $710,000, hardly a huge sum in the realm of executive compensation. Perhaps next year his salary could reflect a much smaller bonus, but seeing that this one includes his successful acquisition of Saab, I think he deserves something for accomplishing the deal in the first place. Enough on that though, VEB won’t let up.

They want to question Muller about whether or not there was more tension between Victor and Jan Ake than was revealed to the press. As if they’d give them that answer? They’re basically calling Jan Ake a liar after he’s said repeatedly he simply is ready to spend time with his family after 40 years straight of work. Give the man some space. VEB’s tone is not surprising though, considering they think Victor Muller runs the company without any accountability to shareholders.

“The company needs a CEO who reports to the Board. Muller is already behaving as if he runs his own company and does not care so much about the shareholders,” Tomic said.

Perhaps he’s just running the company as well as he can since he has so much skin in the game himself, seeing that he’s one of the largest shareholders. Just a hunch.

_________

Chinacartimes.com has a very deep piece about BAIC’s feelings on Saab’s new positioning in China. Suffice it to say, they sound like an ex-girlfriend who is pissed off at seeing her old flame find someone new. She’s also pissed that he’s been working out and has new platforms to show off. BAIC’s new slogan philosophy for their Saab-based models?

“From Saab, Better than Saab.”

Ha! Classic. You know, because a gussied up 9-3 or 9-5 is bound to be better than one without compromises designed by Saab engineers who designed the original version. “New things may not be good things,” said Mr. Dong, VP of BAIC. They claim they’re not intimidated, but what else can they really say? You wouldn’t want to tell your ex that you’re jealous.

_________

37 thoughts on “Morning Snippets: Annual Shareholder’s Meeting Day”

  1. Well, Lear is a very big automotive supplier with 92.500 employees worldwide, so closing the THN facility won’t be that big issue for them. It will only be the beginning of the end for west-Sweden, IMO.

          • @Jeff, yes they are only closing the THN facility which for 90% depends on Saab. So it looks like they have no confidence in Saab anymore.

            I guess you don’t give your employees notice as part of some kind of negotiation strategy. And when Lear really “quits” it will take some time to find a new supplier.

          • Lay off notices (varsel) does not mean that they decided to shut down the facility. They just do it for their own safety since the law says there must be a certain number of months (depending on length of employment) between the lay off notice and the actual lay off. It is very common that lay off notices are withdrawn when a company realizes they still need the workers. If SAAB pays them they will not lay off these workers and not shut down the facility.

          • According to the WSJ, Johan Andersson of Lear notes that the situation is still fluid; depends on SAAB (paying up, I suppose). So this obviously isn’t a done deal , unless you have information the WSJ doesn’t?

            Long term, though, would this be a real loss? SAAB seats are super comfortable, but the quality of the “leather” currently in use leaves something to be desired. Get back to the Scotch leather supplier from days of yore, IMHO.

        • Was the the Lear facility in THN the former manufacturer of the older Saab seats, that was bought by Lear corporation?

          The OG 9-3 and OG 9-5 seats were better than the current range, IMHO. As for Volvo, there have been gripes that the seats in the current V70 are less comfortable than those in the previous gen V70.

          Saab seats are an essential part of the Saab package and keeping the local Saab suppliers afloat is as important as the factory itself.

  2. I don’t think Muller should get any bonuses until Saab makes a profit. However, once Saab does get a profitable year, he can have all the bonuses he wants.

    • Sorry about that– I published from an autosaved version which omitted the entire Bloomberg part. Time for some sleep 😛

        • Up all night working on some renderings for work. Nothing like writing SU posts to pass the time. Definitely on Victor’s sleep schedule. Two hour nap here I come.

  3. I have a feeling VM’s bonuses went more or less straight into new Saab Spyker shares (back as Saab equity) so no money ‘lost’ there. BTW a CEO works much better when he’s all-in himself 😉

  4. From DI “We have focused on giving suppliers a security for the next six months,”said Gunnar Brunius.

    I think it sounds like we may have a focus on building and selling cars over the next six months to begin with..

  5. According to an article on DFT.nl (following an interview with Reuters) Pang Da’s CEO wants to setup a JV between Saab/Spyker, Pang Da and a third party to setup a production facility. The contract should be signed this year and the facility should become operational within 2 years. Next to that he said Pang Da will open 50 Saab dealerships this year and expects to sell at some 10.000 units depending on production schedules in Sweden.

  6. Pang Da intend to sell the Saab from 50 outlets in China this year and aims to get 10 000 imported Saabs in the Chinese market before 2012. It says Wang Yin, Pang Das board secretary told Reuters on Thursday.

    • The 50 stores that Wang Yin talking about will just deal with Saab. The company also sells a range of other brands, including Volvo in seven of their over many hundreds of showrooms.

    • Interesting, I would have expected VEB to do much more of a hatchet job on Victor Muller. In the past they took every opportunity to drag his name through the mud. Maybe they are slowly realizing that he is really working his ass off to make Saab a success?

    • There are a lot of inaccurate statements about higher management people leaving Saab, mostly that there were no reasons given for their departure. JaJ is leaving to avoid burnout just before retirement, the Saab Germany and SaabNA leaders left because they did a lousy job, i.e. didn’t sell any cars.

    • Yes.
      There are a select few on a holy mission of truth as they see it.
      Somehow they tend to be wrong all the time, so no worries about that

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.

Close