Press release: Swedish Automobile Enters Into EUR 25 Million Convertible Bridge Loan With Gemini Securing Additional Short-Term Funding And Pays Employee’s Wages
Trollhättan, Sweden: Swedish Automobile N.V. (SWAN) announces that it entered into a EUR 25 million convertible bridge loan agreement with Gemini Investment Fund Limited (Gemini), thereby securing additional short-term funding.
SWAN entered into a EUR 25 million convertible bridge loan agreement with Gemini with a 6 months maturity. The interest rate of the loan is 10% per annum and the conversion price is EUR 1.38 per share (the volume weighted average price over the past 10 trading days). SWAN may at any time during the loan’s term redeem it without penalty and it intends to do so once the funding from Pang Da and Youngman is received, in which case no dilution as a result of this bridge loan will occur.
Upon receipt of Gemini’s EUR 25 million and upon reaching agreements with its suppliers on payment terms, Saab Automobile hopes to complete its scheduled loan drawdown of EUR 29.1 million from the European Investment Bank (EIB).
As a result of this convertible bridge loan (EUR 25 million), the sale of the real estate (EUR 28 million) and the sale of cars to a Chinese buyer (EUR 13 million), Saab Automobile (conditionally) secured EUR 66 million in additional funding this week. Assuming the receipt of these funds takes place as scheduled, Saab Automobile expects to have secured the liquidity required to restart production hopefully within 2 weeks, subject to reaching agreement with its suppliers which includes feasible delivery schedules.
Victor Muller, CEO of Swedish Automobile and chairman of Saab Automobile said: “I am relieved to report that we made the June salary payments this afternoon from the proceeds of the sale of cars we announced last Monday. We again extend our sincerest apologies to our employees for the hardship the late payment has caused to them. We have clearly gone through a very rough patch in the past few weeks and hopefully we can now reach agreement with our suppliers so as to ensure a resumption of our production in a controlled way. Our mid and long-term funding is secured by the Pang Da /Youngman agreements which are still subject to obtaining certain governmental approvals. Assuming these approvals are obtained, the Gemini bridge loan will be repaid in full.”
147 thoughts on “EUR 25 Million Convertible Bridge Loan: *SALARIES PAID*”
My question. Do they need the EIB money to start production?
Possibly. According to this statement, so long as the transfer of the 66 million Euro payment goes through as scheduled (from Gemini, the “Chinese buyer,” and Hemfosa goes through it should start within 2 weeks. The only deal that was conditional on EIB approval was possibly the real estate deal with Hemfosa. I’m not sure if that’s still the case, but we’ll find out soon.
Read 2nd from last paragraph above:
Indeed. The EIB money would then be used to pursue with the «enviromental projects».
afaik EIB money is for environmental projects, so they can’t use it anyway
One thing came to my mind: as the last tranche of EIB money Saab asked for didn’t arrive did Saab finance the ongoing development from their own cash completely or did the put those projects on hold? If they used their own cash they may be able to get back a certain amount to their cas pool as the EIB money arrives…
(I hope this thought was understandable)
till72: A djup strupe informed the crew recently that as far as he knows, Saab funds the projects initially. Then, each quarter, the EIB looks over how much Saab have spent on projects that qualify and lends Saab 50% of the money already spent.
So… When EIB turns tail and refuse to pay up, it will indeed challenge Saab’s finances. Saab cannot go back in time and unspend the money EIB had already promised them.
I would love to get my hands on the loan agreement and see what it actually says.
More to follow on this story I hope.
Would that not go against the initial agreement to the EIB loan and hopefully that would give Saab the opportunity to challenge the EIB legally? Seems like they are kind of making terms up as they go if this is true. I have never received a loan before that stated that if I didn’t have enough my in my account that the bank could then reneg on my loan that they had already approved. I wish the EIB could be exposed for what they are, and to think everyone was tricked into believing we had to worry about VA’s apparent “connections”, I’d be more worried about the EIB.
That is why I said I’d love to get my hands on the loan agreement.
Indeed, it sounds like no loan I have ever heard of before.
A SU-crew member is working on a bigger article though, so stay tuned.
@Rune: “A SU-crew member is working on a bigger article though, so stay tuned.”
I look forward to read that article.
Rune, that’s a fairly standard way of getting EU funding of any kind, and if you look at investment loans, e.g. real estate financing, this is how it looks. The bank will see how you spent your money and decide whether you are indeed pursuing the project according to your business plan instead of engaging more money at preferential rate into a black box.
And EIB is right to question whether Saab is indeed in a position to continue with the projects rather than diverting the money to cover the current cash crunch.
All in all, I believe this will all fall into place – after all, EIB is funding a big chunk of Saab’s development (fixed) costs, which in turn lowers their break-even. So, playing by the rules, they still win.
Bravada, I fail to see how not paying ensures the progression of aforementioned projects.
There is always a chance a project might not come to fruition, but for all we know EIB might already only be paying for completed projects. (I dunno — do you?)
In any case, Saab already spent money on these projects. They could have spent it to cover the cash crunch, but they did not. They probably should have, but did not. It seems harsh to punish them afterwards.
Rune, how do you know how Saab spent each bit of money they did? For now we know very little about Saab’s finances. I keep track of all the financial data published, and I still have only a very general idea.
You must be a lucky person to have never financed something out of EU-support monies, but actually the way they require you to document your expenses and only pay in installments when you have provided enough proof you spend according to plan is the sensible part of it.
When EIB pays out, it is my understanding that Saab have already spent the money and showed EIB the receipts. EIB have full insight into what the money was spent on. There is no wiggle-room. It is unlikely Saab could show up with a bunch of handwritten receipts, claim to be working on fusion power and then have money drop into their hands out of nowhere…
I could understand your concern if EIB paid in advance, to fund R&D the next x months. But this is apparently not the way it works (or rather worked until EIB pulled the plug).
But your query is more about a possible EIB objection to the health of Saab as a business? IMO, EIB has nothing to lose (strangely enough, even the guarantor is covered as far as the loan is concerned). They can afford to be lenient towards Saab and provide an environment where Saab’s business would prosper. Sales figures had been steadily increasing prior to the stoppage. To stop short and then spend an eternity pondering the ownership question makes it appear as if they want Saab to fail.
Thanks for the information, Rune, and comments.
Looking forward to reading more; the work from you all is SUper. 🙂
Bravada from GMI,
Regardless of Rune knowing how each bit of money was spent by Saab is not really in question is it? Saab has collected on this loan in the past have they not? One would assume that would mean they know what is required to document how it was spent to ensure they receive the money from the EIB. If they did everything as they have been instructed and still have not received the payment (drawdown) would it not be fair to say that the EIB is in the wrong? To me it seems the EIB is changing the rules as they go.
Production needs to go @ full pelt, once running, to repay all the advanced monies received/borrowed & new orders need to come in Fast.
Well done All @ Saab…..Very well done.
GRIFFIN UP !!!!!
And VA is don´t have time to meet the press tomorrow (he will meet the press later), he has more important tasks for Saab: http://ttela.se/ekonomi/saab/1.1270516-nytt-antonov-staller-in-mediatraffen 🙂
yes, he is beating up Maud at 11.30 🙂
With her sons windmill? Is it true that her son owns a windmill company? If so, she should leave her post.
conflict of interest or just an impression ? 🙂
“katar1na” today at 16.06 in this post: http://saabsunited.saabklubben.se/2011/06/19813.html
Someone should try to find out if there is a conflict of interest in Maud Olofsons work.
And she said that windmills could be made at at the factory i Trollhattan.
I don´t think this would pass in Norway.
Audun – this is interesting. Maud is talking about innovations and new initiatives – and do nothing to keep Saab; – one of the most innovative companies in Northern Europe – alive …
A little googling turned up this:
So there you have it… Saab should have employed her son back then, and Saab would have been as big as BMW by now.
Thank you Rune.
I´m deeply shocked!!! Saab should have a good case!
IT Manager doesn’t equal Owner. It’s not exactly a fluff position, either. I agree it doesn’t sit right, but is there more to it?
And this article i published February 17, 2011: http://www.nyteknik.se/nyheter/innovation/forskning_utveckling/article3103165.ece
So she still try to help them in 2011
@Cris: Yes, she talked down Saab, and did nothing to help Saab.
Here´s a funny detail for those of you who are interested in the Swedish culture:
Maud Olofsson invited her up to come political partners to her home – to take a bath in her outdoor bathtub. A pertinent comment would be: she should never have got up from there 😉
This SAAB-matter is not the only one she screwed up. Everything she laid hands on have ended in a disaster. I have a relative who privately meets Maud sometimes – that is how I know. So she is not among devoted friends all the time, and this lady should be more careful.
Right now we are at least HAPPY for the SAAB Team in Trollhättan!!! KEEP UP THE GOOD WORK AND PLEASE DON´T GIVE UP!
@katar1na: Thank you for following up this.
I completely agree with you in this:
“Right now we are at least HAPPY for the SAAB Team in Trollhättan!!!
KEEP UP THE GOOD WORK AND PLEASE DON´T GIVE UP!”
katar1na, whatever is going on with Saab we should be careful not to start rumors about anyone or anything that cannot be proven to 100% certainty.
An innocent sentence can get bit lost in translation and stir up something that’s not helpful in any way. Someone’s company for instance can be interpreted in many different ways.
we should be careful as you said, but the big G may help. 😉
It might also be the big L that’s missing in this relations with the Swedish Gov.
Hope I wasn’t able to offend someone again? 🙂
Or at least explain why she is such an old windbag! 😉
“RS” – you´re right.
On the other hand, the Swedish Government themselves accused Antonov for maffia-relations and then acting on that belief… and as far as I know, there have been no excuse?!
In the position that Maud holds she must be more than careful with the interests she´s supporting. Especially when it comes to close relatives, and especially in Sweden where we do not need a maffia since local politicians and businessmen usually are relatives or close friends supporting each others interests anyway 😉 Gothenburg for example…
But your point is correct.
He wrote a nice letter to her, and voiced his concern about the change, her resignation, and what that would mean for Saab.
The above was a reply to the initial:
Carlo A June 29, 2011 at 18:51.
It’s not easy to follow comments, since it can be 15 comments between a comment and reply, as here; that, and the problem that you can only reply in three or something levels, makes it difficult.
That man could write a love letter to a dictator! I´m stunned – beautiful in every way… almost in love with that man 😉 Let´s hope that the fish will bite…
Finally, some good news. I genuinely hope that we keep hearing more and more of it!
And the roller coaster continues.
The Wall Street Journal mentioned this. Not much there about Saab lately.
Great news!! it helps me keep the faith while i’m waiting for my 9-3. I’m also starting to wonder if V.M is related to the great Harry Houdini with his many increadible escapes from impossible situations.
Thanks Victor, this is a great relief.
So we have both the bridge loan and the payment from the anonymous Chinese investor coming in all at once. That’s great! Being a relative late-comer to the Saab Saga, I am beginning to see what people mean by the “roller coaster” nature of this experience.
Seriously, I had no idea after buying my Saab 9-3, I would get sucked into this fast-paced drama where news is breaking, literally every 3 or so hours. As a software engineer, I am used to this short of a news cycle in the computer industry … but for an automotive company? Well, it goes to show that Saab is a very unique animal.
You got that right friend.
Well, very welcome to the SAAB show. We are all buckled up and have no where else to go but tangle along…. 😉
It’s a thrill, it’s both fun and scaring and you will find it rewarding listening or at some times commenting on the progress!
A roller-coaster? Naaaa, way to slow for me
Welcome to the family!!!
Don’t worry, getting sucked in is only Dr. Hossiep’s “Involvement Index” in action. All Saab converts should be warned:
Yeah,welcome to the family!
And it is no wonder that it all came at once, it just shows that Victor has the true Saab spirit: “power as you need it”. 🙂
VM did it again – He fights like a lion To all who critized him as temporary CEO – In this near death situation you need a Muller.
Now if the Swedish Government and EIB would just follow Ted Turners motto,
“Lead Follow or Get Out of The way”
We might be able to get back to discussing sales, colors, the newest options and what the new 9-3 is going to look like.
That would be great!
At the moment, «It ain’t over till its over» is quite adequate!
… and may I dare bring up the question of why the new 9-5 and 9-4X doesn’t have a griffin on the steering wheel?
I mean they are both beautiful cars but … come-on! Call me superficial but I like to see the Griffin when I am sitting at a stop-light 🙂
Because the Griffin Logotype is owned by the Truck company Scania. SAAB cannot use it anymore – unfortunately.
really I did not know this …. I understood they could both use it …. what a pity….
what about the old one with the aircraft used on the Phoenix?
does the new 9-5 not have the griffin on the bonnet?
Well the US folks had planned to get rid of Griff anyway as an evil, vile symbol of aggression. But I wonder if perhaps that if the Griffin was a historic Swedish symbol they could perhaps use it anyway. Where I am YOU CAN NOT COPYRIGHT SOMETHING OF THE PUBLIC DOMAIN, and if The Griffin is a national symbol there may be a chance.
Or, look up the original historic Griffin and use that with minor modification?
I was lucky and took the Griff off my old 900ng before it was donated. The one on the steering wheel make a great cap badge. I wear it everywhere.
Well there was a version of the Griffin with the “Scania” text on it … So I can understand them dropping that, but my 2007 9-3 has the Griffin without the Scania text. The new 9-5 has this same logo but the removed the one from the steering wheel *and* the trunk (boot). So if they can’t use it anymore, why is it still on the front of the car? Seems more like a (bad) design choice to me.
As do our 2008 and 2009, but these are GM cars and did the Spyker deal negate any of the agreements to use it?
They want to emphasize the S A A B wordmark more. I believe the thinking is that people will have a difficult time recognising the griffin, so might as well be blunt about what brand the car is.
Since most Saabs rarely stay to chat with other cars, there is only a limited amount of time to study the griffin.
That said, what do you think about the tail of the Phoenix and the old airplane logo? (http://saabsunited.saabklubben.se/tag/phoenix — some pics of the tail in the “European Tour 2011” story and others)
No matter what I will miss the Griffin.
Even though they have a way of leaving prematurely 🙂
The Griffin is the symbol of Scania, which is not the truck company, but Skåne. aka. Eastern Denmark,temporarily on loan to Sweden
Not that wikipedia can always be trusted.
You should see the danish version 🙂
Do it yourself! I made one in silver stripe cutout and put on my car. Even though I´m past +40 yrs, I hear young lads wistling when passing or parking – it´s all because of my Griffin stripe… quite nice 😉
Rune: Yes, emphasizing the SAAB name is a good idea. And I think bringing back the Jet logo sounds promising (if they can strike the right balance between retro and modern). But, it really depends on how it looks on production vehicles, as concept cars tend to exaggerate design motifs (yes, I realize that is an understatement).
Rune, I am very old school and like things simple and clean. The Phoenix seems to be overly complex and abstract. I know it appeals to many.
Regarding the old airplane logo, the prior pilot in me loves it and I fully intended to put on the back of my SC but seeing others that have done it it looks forced.
That said, I would love to see a subtle window decal for the rear with the old logo. I have a t shirt or two with that.
StateOfNine.com sells replacement logo emblems. So as long as there’s a circle of the right size, maybe you can add your own back in.
I agree. That was how I interpreted it, they want to emphasize the S A A B wordmark more. Especially now, since it seems like in some markets they thought it went away.
A good choice.
“Since most Saabs rarely stay to chat with other cars, there is only a limited amount of time to study the griffin.”
I’m with ryanonsrc. I admire my Griffin logo on the steering wheel often when I’m stuck in rush hour. It’s a fabulous distinctive symbol. Personally, I liked the early 2000s practice of having the Griffin in the center of the rear, with SAAB on the left (as you face it). It was the best of both worlds. There’s no need to have 2.0T on the back. And it’s nice that on the newer models they don’t wear off. By the way, SU debunked the theory that Saab wouldn’t be allowed to use the Griffin any longer some time ago. Here’s the post:
I am skeptical of the SAAB word-mark on the rear of the new ironically named Griffin series, as it is crome on crome and won’t stand out all that prominently, whereas the 2008+ emblems on the 9-3 look really smart. But what can you do…. No one asked me.
As a Swede and Saab nut I love the Griffin (though I don’t agree with Khrisdk about the “Eastern Denmark,temporarily on loan to Sweden” 😀 ); what I meant was that I can understand that they wanted the name “emphasized”. SAAB left and Griffin in the centre is also great; an uncluttered, not so busy look, would be best.
Tripod: Or We could have the Griffin to the Left of the SAAB name (as I’ve seen in many other logos). That would look both modern and would pull the name out of the Griffin logo for extra emphasis without sacrificing the Griffin.
I think I’d much prefer that. The old Jet Engine logo, I thought, was sufficiently preserved by Saab’s distinctive front grill design, where the horizontal bar with “Saab” on it is intended to be an airplane wing.
There never was a jet design, it was the Saab 18 (twin prop), and my grill is just a generic wing on our 08 and 09.
Yep, I agree, Saab 18; it’s not a Saab Lansen, or similar. 😀
As a Swede, and Saab enthusiast, I sometimes have difficulties to understand what people, in the English speaking world (not to mention the French speaking world since I don’t understand a single word, almost 😀 ), mean with different things; SPG, jet design etc. etc.
Isn’t Gemini an Antonov or Converse satellite company for investment loans? He is getting money in one way or the other so it’s almost academic.
Yes it is.
Ladies and gentlemen, on this moment of excitement, please don’t forget to order your new Saab. This is the time…
I’m in. A 9-4x Aero lease is just calculated at my dealer. Would love to order a convertible, too, but my 9-3x is too new.
Getting the Used 9-3 was a perfect move for me at the time. In some sense it was a very opportunistic move (I took advantage of the steep depreciation that Saabs have had recently) and I got a wonderful car that is in almost new shape and low mileage.
Oddly enough, I remember the first time I saw a Saab was back in 2002, this fella from Denmark drove me somewhere. I honestly can’t remember what model it was but it was a green color, and for some reason: I remember being fascinated by it. The look and the feel really impressed me. Little did I know back then that my first car would end up being a Hyundai Sonata that would later get totaled by an idiot driver, at which time my budget is tight enough that I’d start looking for good deals on the market. I’ve only had the car for three weeks and I’m already expecting I’ll be getting a brand new Saab maybe 5 or so years from now.
ryanonscr, we have a lot in common…. I bought a gently used 2007 9-3 a year ago, too, with just 23,000 miles. I got a great deal (trading in a 9 year old Kia) and LOVE it. It fulfilled a long-time dream of mine to own a Saab. I named it Garbo. This former Scandinavian Studies major is very happy.
We do indeed .. my Saab had 52,000 miles (feels like it has had much less). My Hyundai was 6 years old and didnt age nearly as gracefully as the Saab (which, once again, feels new). I named mine Lars-Erik (a swedish composer :-)).
I have a 2.0T model, you as well? Or did you get the Aero?
Yes, a 2.0T. Just a regular, not the anniversary edition. There’s not so many out there for sale right now, but last spring there were sooooo many. The dealer I went to must have had 5 or 6 2007s. It was a little overwhelming. Now, I have a hard time deciding if I prefer the look of the 2007 or the 2008+. I kind of like the more prominent griffin on the 2008+, but it is busy looking. Not keen about losing that in future models. It’s also taken a little while to warm up to the newer look of the headlights. But I’m getting there. Hopefully soon we’ll get to talk about these issues more, rather than funding,
Yeah, the curvy headlights on the 2008 model looks a little wierd to me … it seems to be better on the latest model though.
The dealer I went to (in Corte Madera, California) has a lot of Saabs but the one I got was the only one tha jumped out at me (based on price, number of miles, condition, yeaf 2007, etc.). When I bought it, the 2007 model year seemed most appealing to me as I like the straight line look of the front.
But yeah, now that it looks like Saab will survive we will have the pleasure of getting a brand new 9-3 (or maybe 9-5) down the road!
I agree Kikaluka, if my Saab wasn’t so new, i would head straight to the dealer right now to order a Griffin or pick up a 9-5 on the lot. The time is now! We need to clean up the dealer lots so we can force them to re-start production asap! I’l be going tomorrow to order a turbo6 badge and some touch up paint, it’s the least i can do now.
Since dec 2009, me and my collegue bought 3 new Saabs and 2 preowned. I love them all, but my 2011 9-5 Aero is the best ever. The 5, A6 and E look so very boring when my 9-5 is around. And it drives just as good and is 10% cheaper. That’s a lot of fun for the money…
I´m ordering a new key – small, but necessary since the last owner did something nasty to it (bad people mistreat their SAAB). But I saw the most wonderful TurboDiesel the other day… that owner must have loved the car more than anything… lovely to see =)
Same here! The primary key was fine, but the second had this weird funky smell and the rubber material the key is made out of is shedding. Is that the same with yours katar1na? I wonder if they left the key in the sun or dunked it in some kind of weird oily solution (not sure why).
Anyhow, I ordered a third one (actually just ordered the electronic part, the manual key part I kept for use in the new electronic component). Next I have to check out the manual to figure out how to “pair” (I believe Saab calls it “marry”) it with my car.
Well… I actually only will get the chip stuff inside exchanged 😉 But the cost is still the same as a new one… I think? So my key smells just fine 😉 Maybe you should try washing your hands with soap? (Just kidding!) But leaving the key in the sun is a very bad thing to do I understood. A service guy told me he had a friend working at the hospital doing MRI (magnetic x-ray). She put the key inside that magnetic device just to test the common thought that it will damage the key settings. It did not! And the service guy also killed the myth that the key will get a memory loss if its stored close to a cellphone or similar. Nice. My handbag is full of “dangerous” things 😉 so nice knowing…
But I do wonder – you just ordered a new key and was left to do the calibration on your own?? In my case there needs a computer operation to calibrate the new chip on basis of the information in the key still working. But perhaps you mean that 3-click operation with the key? No advise given, guess you need to check your manual… it seems to differ a little between models.
actually you are right … a dealer needs to “marry” the remote with my car … annoying!
Oh well, Ill just have that done on my next major service.
@ryanonsrc: Just make sure you have at least one working key. If you loose all your keyfobs, the dealer will have no choice but to change the entire system. That is a very expensive system. I did not quite understand if your second keyfob was mangled beyond repair or just ugly.
@Rune: The buttons don’t work on the second fob but it seems to start the car just fine. I bought the third one because 1.) I would like a second fully functioning key (which my wife can use if needed) 2.) As a backup in case something happens to both the original and the second funky one.
The primary one that I have at the moment works 100% fine so I’m not concerned with that one.
Sounds like you’re on the right track. My only concern was that which Swade posted about here: http://saabsunited.saabklubben.se/2009/08/modern-saab-owners-look-after-your-keys.html
(hmm, comments are gone there, I think it was back then I asked about the possibility of going swimming with my future keyfob, an idea not met with much enthusiasm :P)
$200 to $300 for a new key and marrying it to your car.
Welcome to the new brave world of electronics. They won’t steal your car but you get robbed by the dealer instead. No critique towards Saab intended, most ‘premium’ brands have the same feature, you’re just paying for the monopoly, it’s about $10 in parts.
Great news! 🙂
Very well done Victor Muller! 🙂
I do hope the production of the amazing cars will restart very soon – and the process of developing new cars in the great innovative spirit of Saab will continue…
I am looking forward to see the coming green, efficient, safe, well-driving and hopefully beautiful cars from Saab. I am also hoping that Saab will have success enough to – in few years – become a healthy business. ( The latter seem to be more important to the Swedish government then the uniqueness and innovative standard of the company…. )
Hehe – love to U2 Denmark 😉
Finally some good news. More liquidity and salaries paid. I hope it is not too late. and the damage will turn out to be irreversible.
In Switzerland, traditionally a very good Saab market in terms of sales and margins (often fully equipped Aero models as standard), there is a serious crisis among Saab dealers and clients. The “Neue Zürcher Zeitung” (NZZ), probably the newspaper most read by Saab buyers also, in a survey of interviews with Saab dealers reports that trust among clients (and dealers) has gone – definitely and probably foreever. Clients withdraw their orders, and the surprise reports of non- or late payment of salaries were the final killer. There is absolutey no acceptance for such behavior and circumstances. Dealers are reported to now sit on lots of preordered cars, that they cannot expect to sell anytime. Dealers themselves do not believe any more in a survival of the brand.
To restore confidence for Saab again, a lot would have to be done, and for a long time. Any hopes that this might be achieved with limited amounts of money (200 or 300m EUR within a few weeks) and tight budgets within the same structure, might fail for that reason alone. If to be succesful, much bigger changes are needed, both financially and with respect to corporate conduct and leadership, if the current standalone business model should be continued. There is absolutely no reason to be triumphant or enthousiastic about VM here, as many contributors in a first reaction have been when finally some good news arrived. It is ridiculous to compare him with any type of hero. I know he has saved the brand 16 months ago. For clients and those who have done business with Saab like the dealers – and those are the ones that count – he has miserably failed, even if in the end Saab should survive the current crisis. Worse to hit at those who have sharply critized the poor business conduct in the last 3 months. I am a big fan of the brand and have bought quite a few Saab’s for myself and people around me (also in the darkest days) and I would be glad to praise VM. Alone realism forces me to be very skeptical and to recommend other options. Sad but probably inevitable. Too much is associated with really bad management, false promises on and on and inacceptable business practices.
Saabs don’t come with a picture of VM on the dash as standard. They do come with a great ride, amazing looks and a 10% lower price tag than their competitors (9-5 compared to 5A6E). I really don’t see why I can’t recommend Saab to friends, and I don’t see why you can’t either.
As a swiss Saab customer for many years with currently 2 Saabs at home in my garage and a 9-4x order signed which should be delivered after summer, your statement scaries me a lot. But I do not want to cancel my order as I still belive in Saab! Management may change but the spirit of Saab will remain and will survive this crises as wel, hopefully.
@MichaelB. I certainly understand your frustration, Michael. Dealers here in the USA are hurting for business too. Some are closing, some are considering dropping Saab from the line-up. A dealer in Boston (a traditionally strong Saab market) has nearly 75 Saabs for sale – 23 of them are the new 9-5! Unfortunately, there is no money for marketing. Even with the recent cash infusions, I do not expect things to turn aruond for a very long time. However, there is still hope, eh? Don’t get too down.
when the glass is half empty, it is also half full at he same time, it is only a point of view. Realism does not exist, as there is no universal reality.
You have your point of view, and I have mine.
The case of Switzerland, is, as you say, not encouraging, but I don’t think Saab will disappear from Switzerland, it is only a snap-shot of the current situation.
And, YES, I do know that Saab has now much more work to do to be profitable than 3 months ago, I’m not blind.
dear michael – i think victor wasn´t to overoptimistic – sales were rising and the new models were ready to start -they also had negoations in china before march – so they wanted to make a long term deal before the production stop . i think that the main problem was going out into public from the suppliers – normally these things have to cleared behind closed doors and the real debts were in the range of the normal paying goals – because of the glass house situation. – of course situation the situation and trust has hurt a lot – but a true saabfan knows what to do – for example the austrian press updated the bad news nearly every day – but since the new start of saab in 2010 there wasn´t any real review of the 9-5 in a daily newspaper.
but we have a different situation now – pangda sells cars in china – and if i compare this to the usual 20 in austria … or 50 in CH – there is a huge potential – russia is also on the way.
The old markets are very important to Saab.
New Markets are good for the vaste expansion wanted, but not at the expense of EU. Saab have a huge repair job to do in the EU (including GB, where many dealers are simply fed up with the promises!!) & the US.
Bread & butter comes before the Jam…….
What makes me feel strange is the cash flow situation.
VM announced in Geneva, that the Saab’s financial future is secured.
Then, 2 weeks later the factory was stopped.
Then Pang Da deal was announced and we were all told that from now on the situation is secured again.
“We won’t let this happen again” we were told….*nd after few days the facotry was stopped for the second time….
In the same day, E. Geers announced (correct me pls if I’m wrong) that it was planned and the restart was planned for the next day. Since that day factory stands still….and the new press release from today suggest that it won’t be restarted on Monday.
My question is then, who’s fault is this, this whole communication mess??
Maybe it’s high time Eric to leave the ship?
Maybe VM is not getting the proper informtaion on time?
And at the end, why VA couldn’t simply do exactly the same what the Chinese did – order and prepaid the cars. The prepayment would help to pay the depts, salaries and maintain productio hopefully. And cars? Cars could be sold to anybody in the world. US? Europe? Russia perhaps?
I don’t blame anybody. I’m simply being curious how this is possible that they made so many mistakes in communication in such a short period of time….
If Saab continiue this strategy it will kill himself even having another few orders from another misterious Chinese companies.
BTW – any idea what is the name of the company that have placed the order recently and why Saab decided not to mention it??
Anyway – I strongly believe in happy end.
Fingers crossed, but still hell a lot of work to be done.
I agree. Have these been communications mistakes or something more deceptive? I certainly understand the desire to present matters as positively as possible, but then when things don’t work out as presented it is not only embarrassing but also very frustrating and lowers confidence in Saab. I keep hearing the refrain, “we have no liquidity problem, it’s just a matter of when payments go out.” The last months have proven that statement wrong. But, today is not a day for raising those concerns. It’s a day to celebrate that Saab is still here and has the potential to grow stronger. For that I am very thankful!
I hope somebody i writing a book about this also.
Good work Saab!
Good Evening from the West of England.
I ordered TODAY my new 95 Sportwagon Aero TTiD in Carbon Grey and parchment leather interior. It’s a beautiful vehicle and I cant wait for it to be delivered ( hopefully) September.
With 146g/km emissions , such a high spec and great looks , it’s going to turn a few heads in The Cotswolds !!
SAAB UP !!!!!!!!
Woah! Great SAAB, I hope you’ll love it 🙂
Congratulations! Very nice car! 🙂
I’m also looking forward to the delivery of my 9-5 SC in September 🙂
Well then it will be built just in the same time as my 95 SC ttid aero… Congratulations!
Will this configuration (9-5 Aero TTiD) ever be available with an automatic gearbox ???
Well done, sir !!!
God Bless the English. Just like Churchill, SAAB will prevail!
I thought the 95 Sportwagon Aero TTiD, had a minimum of 160g/km emissions
It is a little bit weird, but the UK price guide is the only one showing correct CO2 values.
I got my figures here;
These are OK too:
One thing for sure, VM doesnt give up easily.
Where did I read this?
“SAAB, the car company with ‘9’ lives”.
I wonder how many we are up to now? Let’s not use up any more, please. Too much stress.
Cats have nine lives, we have way more.
Ah, good to hear. I hope it’s ’99 or 900, or maybe even 9000′ !
Nice work ! Almost there…almost there.
Very good news! Even if everything is not sorted out yet, things are definitely moving in the right direction! 😀
Whats happening in the end of july? Do Saab have any money to pay there employee? Just a question, to start the production takes about two weeks and how much money can they earn in that short period of time? 10 000+ cars in stock is good but can Saab afford to pay in advance if necessary?
I keep my fingers crossed and hoping for the future. It´s not going to be easy but it must go even if it will take years to show black figures. Believers and wealthy investors is the key.
First up I just want to say Thanks to JEFF for predicting the future in his post June, 23rd.
There were a lot of nay sayers to SAAB pulling the Gemini Joker card with such a low share price. Just goes to show that Muller knows what he’s doing even if I have doubted his talents at times. Victor I will buy you beer when me meet in Frankfurt, or better I throw a free After show party for you guys.
I love the griffin but I don’t see it as the be all and end all of SAAB.
The twin-prop Logo is the fantastic logo on the other hand.
However maybe SAAB should change is mystical creature to a Phoenix after-all it seems like SAAB has died a thousands times in the past couple of years but keeps coming back with more vigour and passion.
Getting money into SAAB:
If I could buy a new SAAB tomorrow I would but what is annoying me most is that I didn’t buy a couple of thousand Euros worth of SWAN.AS shares on Monday when they were at €0.98 I wouldn’t be surprised if they will be near €3,00 tomorrow.
WooDz, if I remember correctly Jeff was talking about the GEM fund. This is Gemini. Not the same animal. 🙂
Yep, different WooDz, though credit is always fun. I almost wanted to put Gemini in there too since that seems to be Victor’s preferred hat to pick rabbits from, but I hesitated because I didn’t want to start another conspiracy theory thread about who is really behind Gemini…
Either way, I’m just happy the money is being transferred, and hope the Chinese get all the approvals necessary. Time to start being productive and covering the good things about Saab, not the day to day financial deals.
You are confusing GEM (GEM Global Yield Fund Limited) with Gemini (Gemini Investment Fund Limited) those are 2 complete different things.
————CLEAR ZZZZZZ———-CLEAR ZZZZZZ———-CLEAR ZZZZZZ—^—^—^—^—^—^—!
This is worth a read:
Riksgälden retar upp EIB
(Debt Office angers EIB)
Seems Saab is starting to get positive press, and all eyes are looking at the EIB right now.
Swedish Mrs Srejber in EIB is replaced by our former austrian finance minister -maybe we should write him
you must be kidding me…
Go drive your audi into a tree.
What the heck is wrong with you? You come on talking about your new car by a competitor and expect kindness when Saab is in this crisis? “Mean” to you??? Read your post — what’re you, drunk right now or something?
Please don’t flame the guy, he comes here from time to time to tell us about his new Audi for reasons none of us really know. We mostly just let him be. I will say though, if he ever calls anyone here a bitch again, his IP will be banned.
He should remember that we know that he traded bla bla bla Saab bla bla bla for Audi bla bla bla….
I have so much to add here, but I promised Jeff I wouldn’t. I will just say there is a reason you live in Ohio.
Its pretty sad isn’t it? His Mum must love tho’ I guess….
Really? Why do you keep coming back here? Sometimes you say some nice stuff about Saab, but then if people don’t engage in commenting on your comments, you say something to get people mad. I think you need this group more then any of us need you, who will listen to you if you don’t have this forum to annoy people on? Stop wasting forum space with your comments and don’t be so disrespectful to call people bitches.
Welll I assume your Audi has about the same driving experience as sitting on top of an half melted brie so… godd luck to you and your car my friend;)
You are just simply envious, man!
Confess – you just can´t handle the turbo – ha!
It takes real men to drive a SAAB. Or women.
It´s okey – you drive your Audi and the rest of us cars.
Be careful, dear friend. The brake system is a common failure for your beloved thing with weels.
This feels like starting an old lawnmower after the winter, bloody hard to get it going but once it starts it works well. Whilst it is good news for the employees it is not the news we need…… when will production start?
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