Decision Week – Continued

This is the morning after here in central Europe. I did not get too much sleep as I have been chatting with people from different time zones until I literally fell asleep besides my MacBook. The renewed “no” from GM has been a hard hit for Saab and all who are close. We’re surely in high danger of running out of time but still, this does not have to be the end for our tiny Swedish carmaker. Rest assured that Victor is still pushing to explore all opportunities excluding giving up.

The biggest problem right now is time. Reconstruction is in a critical phase. Fresh funding is badly needed to pay salaries and to fund the company for the next few weeks. This would be Youngman’s part and I am not really sure if they don’t want to take the risk of investing even more or if they have certain restrictions from for example NDRC not to put more money in until a successful deal is reached. The fact that they continue to work on a solution and that they are obviously willing to step back in their share shows that they are pretty dedicated to getting a deal done.

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Decision Week

On Sunday we got to report about a new deal that was negotiated in Stockholm between SWAN, Youngman and, as a new partner, a bank in China. Honestly I had expected more positive news yesterday but obviously not everything running smoothly.

There have already been reports that GM is not fond of that new plan, but if we listen carefully to James Cain we learn that no decision has been made on that new proposal. Actually he said that it has not been worked on. I’d believe that they are just not finished yet because such a plan may be a lot to read. So hold your horses about that one, James will surely inform us when they are done. Still, I hope it will be soon as time is running out.

Some may see that bank in China as a placeholder for Youngman, who may want to buy those shares in a few years time. May be true, and this is how those deals are often done. It should be ok for GM if the bank is in until GM’s license agreements run out. As I already said yesterday, the fact that then bank is above the 20% barrier should not matter because it is not a competitor, just a strategic investor.

Pang Da stated yesterday that they are not out of the game. I wonder why they were not included in the plan that surfaced on the weekend but maybe they could be the party in the game who can help to get all involved parties below those 20 % hurdle. Just a thought.

Other news stated that Guy Lofalk is about to end the reconstruction. Well, this may be nessesary if no money comes into Saab. Youngman is dedicated to inject enough cash to continue reconstruction and pay the wages but I can imagine that they wait for a positive sign from GM. They don’t want to sink even more money into Saab without seeing a chance to get the deal through. I don’t know if the NDRC told them to stop or if they are just cautious.

Either way – we need the plan to be approved by GM so that Youngman will inject the funding and reconstruction can continue. And it is needed now, not in a few weeks. Everybody has to be aware of that.

The other thing is the critics that arise when it comes to Lofalk. I’ve had my say on this, I’ll leave it here. Just: please Mr. Lofalk, pull yourself together, do your job and help to find a solution.

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