Reuters: Saab owner warns of funding

Reuters earlier today reported the following:

The funding warning from Spyker came shortly after Saab struck a deal with one of its key suppliers, International Automotive Components Group (IAC), after being forced to stop output for a third day running due to payment disputes.

Unfortunately I became aware of this (thanks to a comment here) too late to confirm this with anyone at Saab.

The latest press release on Spyker’s web site is from Marc 30th and states:

Saab Automobile has sufficient means to meet its immediate liquidity needs from existing and available sources.

The Reuters article unfortunately does not mention any sources other than the annual report.

It seems to me that the press release dated March 30th contains newer information. But even were that the case, it doesn’t mean the situation is rosy. The annual report states there is a need for further funding. It remains to see just how acute the need for immediate funding is. The focus on Antonov is nothing new and is a poor indicator to figure out how severe the lack of positive cash flow really is.

Ironically, Saab is better than average at paying their bills(thanks Gatelaw)


Fred sent a link to Joann Muller’s blog entry

What John is missing, as GM and its federal backers know all too well, is that it takes an awful lot of capital to run a successful car company in a highly competitive, global market. This is a lesson Saab and Victor Muller are learning now.

Nobody said it would be easy.

Spyker Full Year 2010 Results Highlights

Financial Highlights 2010

• Full-year sales of € 819 million, Q4 sales of € 301 million

• EBIT (Operating Income) of € (loss of 140) million in 2010

•  Gain from bargain purchase of € 78 million resulting from acquisition Saab Automobile AB (‘Saab Automobile’) and Saab Great Britain Ltd Result from discontinued operations of € (loss of 60) million includes the losses of the Spyker Automotive business and the effects of the planned sale to CPP Global Holding Ltd

• Cash generated from operations amounts to € (loss of 115) million for 2010


Corporate and Operational Highlights 2010

• Sales continue to build momentum in several major markets (Sweden, US, UK) as independent Saab distribution network was re-established

• 31,696 cars sold (wholesale 2) in 2010 compared to 27,482 in 2009, an increase of 15%

• 11,448 cars sold (wholesale 2) in Q4 2010, up 129% compared to Q4 2009 and up 31% compared to Q3 2010

• 32,048 cars produced in 2010, compared to 20,905 in 2009, an increase of 53%

• Restart of production in Trollhättan with over 800 suppliers after seven weeks of total stand-still

• Production of 9-3 Convertible and 9-5 Sedan relocated to Trollhättan

• Concentration of all operational activities in Trollhättan, enabling more efficient operations and reduced costs

• Wholesale and retail financing agreements secured with major global financial players such as Banco Cetelem, Santander Consumer Bank and GMAC

• Key management appointments in several areas

• Successful global launch of the new Saab 9-5, with positive response from media and consumers alike Successful unveiling of the Saab 9-4X, Saab Automobile’s first ever cross-over vehicle-with equally positive response

• Introduction of new diesel engines program delivering class-leading low CO2 values for the 9-3 range

• Agreement with BMW for supply of gasoline engines for new 9-3, to be launched in Q4 2012

• Launch of partnership with American Axle Manufacturing (AAM) for development and marketing of Saab- developed electric all-wheel drive system

• Launch of the e-Power electric vehicle program in cooperation with external partners

• Establishment of a global, Saab-controlled sales network covering 51 countries and the launch of Direct Dealer concept for 9 European countries

• Sales network continued to expand with new importers in Portugal and Japan, re-establishing sales network in Canada and Australia and principle import agreement for the Chinese market.

Read moreSpyker Full Year 2010 Results Highlights

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