Trollhättan, Sweden: Swedish Automobile N.V. (Swan) announces that Saab Automobile AB and its subsidiaries Saab Automobile Powertrain AB and Saab Automobile Tools AB (together Saab Automobile) today present their preliminary reorganization plan to their creditors during a creditors’ meeting in Vänersborg, Sweden.
The preliminary reorganization plan, which was developed by Saab Automobile management and supported by the current and foreseen owners of Saab Automobile as well as its administrator of the reorganization, contains the following highlights:
Pending the approval from all relevant parties, short- and long-term funding for Saab Automobile is assured: Youngman and Pang Da have expressed their commitment to provide EUR 50 million, to fund Saab Automobile while in reorganization. In addition, the Chinese investors will provide a minimum of EUR 600 million in funding to restart production, to settle the company’s clear and due debts and to fund operations for the 2012-2013 medium-term timeframe. To provide funding for the revised business plan and provide long-term financial stability the new Chinese owners have also budgeted funding for the planned expansion of Saab Automobile’s portfolio and additional operations to be set up in China. Saab Automobile has not received the funds from Pang Da and Youngman that have been committed for today.
New strategy and structure to combine the strength of Pang Da, Youngman and Saab Automobile, with Saab Automobile’s brand equity and heritage, product portfolio and capabilities being the key elements of that partnership combined with the distribution capabilities of Pang Da in China and the manufacturing expertise of Youngman.
Key actions during reorganization: establish new ownership structure with Pang Da and Youngman as strategic partners; reach agreement with creditors on repayment of outstanding debt to restore Saab Automobile’s supply chain; reduce structural costs by SEK1 billion, among others through reducing headcount by 500 employees; and generally restore confidence and trust with all key stakeholders
Restart plan highlights include: seamless production restart supported by existing order bank; accelerate access to China as major growth market; new distributorship agreements in other emerging markets like Russia, new products for traditional key markets (65% of volume) and China which include the 9-5 SportCombi and the 9-4X.
Confirmation of the long-term strategy of repositioning Saab as a distinctive, near premium brand supported by a renewed and broadened product portfolio, a more flexible cost structure with global production footprint, cross-carline modular technology architecture generating synergies, provision of external engineering services and expanded operations to take advantage of growth opportunities available in China and provided by strong Chinese owners.
Sales targets for 2012 of 35-55,000 cars and 2013 of 75-85,000 cars based on realistic ramp up in line with sales development since last restart.
Long term volume outlook of 185-205,000 cars of Saab Automobile based on three main growth drivers: 1) broadened product portfolio in fast growing market segments; 2) capitalizing on access to Chinese market, and; 3) strong profitability focus.
2012 and 2013 seen as financial transition years, profitability expected no later than 2014. Long term margins and profitability in line with other near premium car manufacturers.
A complete version of the preliminary reorganization plan is attached as a PDF to this press release and is also available for download via www.swedish-automobile.nl and http://media.saab.com.
“Saab Automobile has not received the funds from Pang Da and Youngman that have been committed for today.” o_O
Yes, wasn’t sure what that was alluding to – the reconstruction salaries presumably?
Looks reasonable – glad to see sensible sales figures which look achievable. Would be great to be reporting in 2 years time that targets have been exceeded!!
+1
Will ask also here. Can anyone in the knowledge explain if “new distributorship agreements in other emerging markets like Russia” means that Armand is no longer the (sole) distributor? Were they that much recommended by VA?
NC, on the full document they talk about a new distributor for Russia and Ukraine. This may be Armand, as they haven’t started their work yet due to the fact that they did not have no cars to sell 😉
Having read the full document by Lofalk, I understand they refer to Armand. Better than nothing of course, but the Armand guys have been quiet most of the time, their launch went largely unnoticed by the press and their website has no notice of their status while still listing the OG 9-5. Ok, better them than no Saab.
saab always talk the talk, but can saab walk the walk? i live in a wealthy city with a population of 1.7m, we have one saab dealership, sales ytd in Australia 106 units, residuals are shocking, dealer servicing costs are shocking, saab australia boss Stephen Nicholls has stated in sundays paper that joe public is willing to pay up to $80,0000 for a new saab [i think he is living in the clouds]. saab may well prosper but not until realistic pricing arrives, improved warranty, drivetrains, interior and improved access to dealerships and authorised service centres. and if saab australia cannot deliver then roi may be better elsewhere.
yes, some more dealerships in Australia would be nice in the future.
Good Luck “SAAB”, hopefully you’ll success and prosper 🙂