TT talks to Rachel Pang

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This is just a short one featured on ttela.se but it gives some hope:

– We will soon finalize our agreement, she says, but would not go into what it means in detail.

TT: Why has it taken so long?
– It is a comprehensive agreement.

TT: When will it be finished?
– We’re working on it. It will be clear, she says.

TT: Saab is waiting for money. How’s it going?
– Money will be transferred, said Rachel Pang, and then she would not answer any more questions, that the sum involved, without interrupting the conversation but because she has another call waiting.

The article says that she left Stockholm now after intense negotiations. Of course there are no concrete details mentioned but this sounds like they made progress.

92 thoughts on “TT talks to Rachel Pang”

  7. While I don’t know the intricate details of Saab’s agreement with GM, on paper it seems like this may be a way around GM’s veto. However, I don’t know what implications this may have concerning current technology used in the 9-3 and 9-5. Anyone know?

    Concerning the 9-4x, GM won’t like this loophole and them discontinuing the 9-4x is a given. So no 9-4x in the new Saab portfolio… a shame really considering how good a product it was. GM will probably just take the Saab engineered 9-4x, and re-badge it as something else… oh wait.

  8. You know, my feeling is that we shouldn’t get too excited about some deal at this stage. Rachel Pang can always turn round and say that her Dad didn’t agree or the NDRC didn’t approve or something like that. Or she could say and do nothing for a few days (take a few days’ holiday, perhaps, after all her efforts) and Saab would inevitably be in the hands of a receiver. But what she will have done during her visit is intensive due diligence on Saab’s assets and trading relationships, so YM could act very rapidly to acquire the assets it wants free of all debts from the receivers. In fact, it seems to me that there would be every reason for them to do exactly that. Far from losing face, this looks like superior tactics to me.

    • Except that they would not be able to build cars for a very long time and have no network to sell them through? Much cheaper to get the deal done and start selling soon!

    • THis is a tired record that some of you keep playing about the Chinese picking Saab’s bones in receivership. Sure, it’s possible. But there will be others competing for whatever bargain basement stuff there is. And most importantly, they will not have access to the Saab name (which is the property of Aerospace Saab), and they won’t have the right to use GM intellectual property. Saab is a much more valuable entity in living breathing form with everything it brings to the party, including GM IP, its name, and fantastic engineering, production, and marketing groups.

      • Well, I think that they did try and I’m sure that you are right. But GM has made it clear that its IP will not be part of the deal, which means that production will not exist for a while longer and that puts distribution also at risk and what’s the point in marketing a product that you are unable to make. And then there are the debts, which would not exist following a receivership.

        I was not trying to make a value judgement, but to say what I surmise that Rachel Pang probably was actually doing. If YM were to carry out intensive due diligence immediately prior to the appointment of a receiver, then it will have a head start over its competitors for the bits and pieces. Were it just to await the bankruptcy, then there probably would be little chance of it successfully acquiring assets.

        • Again – this deal is made so that GM should not have to approve it. SAAB and GM have a contract and if GM is not living up to it they risk paying damages to SAAB. Also, I don’t see why GM would have anything against this construction of the deal. The Chinese are only taking control over non-GM assets with no control over GM technology.

    • Victor Muller asses the risk of being personally liable for Saab debts to tax authority of (1 million Eur ?) against the possibility of continuing reconstruction and having the deal with Youngman done.

      In case of bankruptcy he will be loosing a lot of money , much more than the taxes due to the state , so I think as long as there’s a chance for this deal to go through , he will not give up.

  11. Larsson left the ship.., I’m wondering if he knew something that hints about a failed deal?
    Or did he simply e-mail “Bolagsverket” before he had info about a possible successful deal with Youngman? Seems implausible…

    Victor, we’re with you!

    • Martin Marsson is an employee of Saab in the end, he can not and should not take the same amount of risk as the owners. This is perfectly understandable.

    • The deal seems to still be on the table, but not concluded. And the taxes are due today.

      So if Larsson wanted to strengthen his position re personal liability in the event of the deal failing he had to do it today. I don’t think he knows about failure or success of the deal yet. There are still approvals needed from external parties. He is just taking out his own “insurance” by leaving the board, just in case.

      (Although I am not sure that it will actually help his case all that much if the issue is brought to court – but that’s another matter.)

  13. Does anyone know what amount Saab has to pay today for taxes and so on? Could it be something like €3M? Which is the amount Saab recieved last friday according to an article here at SU. It will then take a couple days (it took 5 last time) for the money to show up on ‘Skatteverkets’ acount even though Saab payed on time,

  15. I think it is time for some Glögg (hot, spiced mulled wine) and pepparkakor (ginger snaps).
    I can’t get upset anymore – I have no power to change things, just observe from the edge of it all.

    I propose a toast to all involved in the deal, may this all be resolved for a brighter 2012…

    • I just wondering what´s they say in the discussions.
      Feel that is something good. Let´s hope my feeling is true.

      Cross my fingers this evening. And

    • Thanks for the update. No reason to expect any press release this evening though. He could just as well (wild guessing) be there to gove a detailed report and trying buy some more time for finalizing negotiations with Youngman.

          • The TV news as I remember them, said that Saab’s management was called to the authorities (= the debt office?) when those rumours started popping up in the media.

            (I tried to write that above but one word disappeared.)

            It certainly seems reasonable that the debts office wants to get first hand information directly from Saab’s management when such rumours appear.

        • According to a document published bij the AFM (Dutch financial markets authority) SWAN itself requested stock trading to be halted. It wasn’t forced by authorities.

          I guess people are making their own stories. Let’s just wait and see what will happen.

          • I don’t remember (and do not really care 😉 ) if the TV news told anything about _who_ stopped that trading. I don’t know the rules, but it wouldn’t surprise me if Saab must stop trading when such rumours pops up.

            Like Tim wrote: Time will tell what’s going on. Just wait for _official_ news from the only safe source (Swan/Saab). Everything else is just rumours.

  19. I am sitting and looking through the new 9-5´s that are available out for sale on the web, last week I visited Trollhättan and of course I had to visit ANA as well. I just can´t understand why this car have not been sold in any larger volumes. It is just stunning! There must be someone more than me who sees the potential for these cars and this brand!

    Someone, pleas give me the opportunity to buy a 2012 9-5 SC Aero XWD! I need the extra space in the backseat!

      • I’d buy one if I had the money and found one. And I’d hope for it to loose value for every year. In a worst case scenario, if Saab goes bust, some people would probably almost be prepared to kill for one of the first and last 9-5 SC Aero XWD, so I wouldn’t worry about my investment if I had managed to buy one. 🙂

        • Right there with you, except for 9-4X. We have 9-4X #62 …

          … would also love to have a 9-5 SC Aero XWD…especially in a first and last scenario.

          (Though I want more new Saabs, so hopefully not the “last”…)

    • Are you kidding me? Of course we see the potential! The potential has always been there, it’s another story with short- and long-term financing that’s essential when starting up this heavy business.

      I’m guessing that the core issue is that the factory is to large in correlation to sold cars, even on idle it costs hundreds of millions per month – it cannot go on like that.

  21. Nya pengar till Saab
    Uppdaterad 2011-12-12 22:25
    Saab Automobile ska få cirka 300 miljoner kronor från kinesiska Youngman och konkurshotet kan då vara undanröjt. Det skriver Dagens industri i tisdagens tidning.

    • Saab Automobile will get about 300 million from China Youngman and the threat of bankruptcy can be eliminated. The Dagens Industry in Tuesday’s Journal.

  23. googletrans: Saab Automobile will get about 300 million from China Youngman and the threat of bankruptcy can be eliminated. The Dagens Industry in Tuesday’s Journal.

  24. Googletrans of body of brief article

    “Chinese Youngman under current industry source paid the $ 5 million, about 34 million, to the Tax to cover the Saab Automobile taxes and fees.

    On Wednesday, a further EUR 20 million, more than 180 million, which pays the salaries of employees. Before the end of the year, Saab will also get 10 million.

    “Information and documentation will be forwarded to Vänersborg before 13 o’clock on Thursday. Thus, reconstruction continue, “says Daily industry source.

    The money from Youngman had already been paid on Friday, but will be stuck in the Chinese banking system and therefore been delayed.

    On Monday, lasted several meetings of the troubled carmaker’s future. Saab CEO Victor Muller becomes increasingly lonely in the fight to save the company. On Monday left technology manager Martin Larsson Board. While other managers have been or are about to leave the Saab. “

    • Wow some of those negative comments on the article in DI are seriously troubling. What pleasure do these commenters get from hoping SAAB will die? Are they clinically insane or just chronically inane?

    • The money from Youngman had already been paid on Friday, but will be stuck in the Chinese banking system and therefore been delayed.

      Does anyone know what kind of delay?

  25. Close call, but on the other hand I’m (after these forever-roller coasters) hardly ever worried — if there is a way VM is there to lead the way 🙂 This should also mean that YM is very confident about the deal to pull through in the beginning of 2012. Great news!

    • Agreed. She just showed me something. I was not happy with Youngman after the initial power grab attempt, but they really want the SAAB.

      There has been a strange cooperation developing between YM and VM…at least it appears.

  30. Googletrans:
    RIGHT NOW: Money in the Saab
    TROLLHÄTTAN

    Saab has in the last minute has received more money for the company. And more are reported to be on the way.
    related

    On Friday, the Chinese company Youngman paid around 34 million Swedish kronor. The money will cover the Saab Automobile taxes and fees to the tax, according to Dagens Industri.

    According to the newspaper’s source Youngman will be on Wednesday, pay a little more than 180 million that will go to staff salaries. Before December is over, Saab will also be added about another 90 million.

    – Information and documentation will be forwarded to Vänersborg before 13 o’clock on Thursday. Thus, reconstruction continue, “said the source, which is related Youngman, the Financial Times.

  31. This all only adds up to just over 30 million Euro, I am not Convinced that the court will feel that this is enough of a commitment to reinstate the reconstruction, especially if the wages have not arrived in time, no people all this celebration is a bit premature, the court may well just say thanks very much to Youngman for their contribution to the Swedish State and still put Saab back in the position where it is liable to a Bankruptcy action, lets hope Youngman has had a quiet deal with Tenaki on the side, as in paid of some or all of their dept with a commitment to pay of the rest of PDQ!

      • It would be pretty stupid on YM’s part to pump almost 100 M EUR into Saab (total up to this) without really intending to keep the brand alive and make it profitable again. Since the Chinese are everything but stupid, I’d guess that the deal really is done and only needs some final touches. If that is true then Victor has literally moved mountains and is owed one he** of a big statue in THN.

        Ivo

    • Oh, so you assume that Youngman will stop there?
      It’s not really the most straightforward result to reach, but OK
      Luckily the only ones that needs to be convinced is the court and the creditors.

  32. Fingers crossed for di.se and others to have got the facts right this time. So much needed!

    And most important, in my opinion, is that Youngman wouldn’t pay these amounts without being devoted to make “the Deal” happen and being convinced that a joint venture with Saab is a good long term investment.

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