I think the appropriate phrase is yeeeeeeeeee-haaaaa!
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Zeewolde, The Netherlands, 2 May 2011 – Spyker Cars N.V. (Spyker) announces that it secured the short-term funding of Saab Automobile AB (Saab Automobile) by entering into a EUR 30 million convertible loan agreement with Gemini Investment Fund Limited (Gemini).
Spyker entered into a EUR 30 million convertible loan agreement with Gemini with a 6 months maturity. The interest rate of the loan is 7% per annual and the conversion price is EUR 4.88 per share.
In addition to the receipt of EUR 30 million from Gemini, Saab Automobile will make a drawdown request to the EIB for an amount of EUR 29.1 million. As a result of the convertible loan and the EIB draw down – which is expected next week – Saab Automobile secured an amount of EUR 59.1 million. With the receipt of these funds, Saab Automobile secured the liquidity that is required to restart production.
Saab Automobile aims to restart production within a week, pending agreements on delivery schedules with its suppliers. In order to improve lead times to customers and dealers on existing and future orders, Saab Automobile will work together with its suppliers to minimize any impact from the recent production stop.
Spyker and Saab Automobile continue to work on securing medium and long term funding.
Victor Muller, CEO of Spyker and chairman of Saab Automobile said:
“I would like to apologize to our dedicated employees,suppliers, dealers and customers for the disruptions of the past weeks. We will do everything in our power to restore the confidence in our company as soon as practically possible.”
After last week’s breakthrough, when the National Debt Office approved Vladimir Antonov as a shareholder in Spyker, we are now awaiting the decisions by GM, the EIB and the Swedish Government.
Discussions are ongoing with members of the EU parliament to ensure that the Bank’s review has the best prerequisites possible. Saab is also talking with Western Swedish Chamber of Commerce, various Unions in Sweden and Fordonskomponentgruppen (Vehicle Component Group).
One aim with these contacts is to emphasize facts that are not reflected adequately in the current debate. It includes highlighting that Saab does not cost Swedish taxpayers anything. On the contrary, employees at Saab and our close suppliers contribute with about 3.5 billion in the form of income taxes each year. Saab wants, in discussions with authorities and other public parties, to stress the value of creating good opportunities for Swedish industry politics and to maintain a strong automotive industry in Sweden.
Over the weekend, efforts to secure funding has continued- and negotiations with potential strategic partners, including the Chinese car companies – are still ongoing.
It’s very exciting for us here at Saab to see test drive reports of the Saab 9-4x now appearing online. Long-lead publications had an opportunity to drive the Saab 9-4x at an event in the United States back in March. Reports from that event are now appearing online.
On the drive’s scenic parkways, feverishly expanding freeways, and gentle byways, the 9-4X Aero’s chassis was pleasantly tied down. At the same time, it capably sopped up the few bumps we could find to throw at it, with decent ride comfort despite rolling on high-style, twenty-inch wheels.
….the new Saab 9-4X is more sporty and – to our eyes – more appealing than the Cadillac SRX with which it shares a factory. Its dynamic act is certainly polished enough to bear comparison with flagship petrol version of the Lexus RX and Infiniti EX.
….ride quality is surprisingly supple in both suspension settings; no noise finds its way into the cabin via the suspension; and the six-speed auto is much smoother than the SRX turbo’s we tested last August.
The interior and exterior styling are unmistakably Saab, with Swedish quality and minimalism. The materials used in the interior look and feel apropos of the luxury class into which the 9-4x is slotted. The exterior will stand out in a crowd of German and Japanese crossovers, while still looking reserved and understated.
(The) 9-4X is a serious competitor for the title of best mid-sized SUV on the planet. And I’m not joking. The car is better than the Volvo XC60, better than the BMW X3 and better than the Lexus RX.
Short-lead publications will have an opportunity to drive the Saab 9-4x very soon at an event in Washington DC. Keep an eye out in the next few weeks for more road tests appearing online.
The Saab 9-4x should be appearing in US dealer showrooms soon.
So, here I am, sitting in a hotel room in Trollhattan. That’s not a bad place to be on a beautiful Spring day in Sweden, but I’d rather be in a picture like this…..
I’m sort of living in Sweden and sort of not. I don’t have an address here and I’ll be heading back to Australia next week after five weeks away from home in Hobart. But then I’ll be back again, and that’s the way things will go for much of this year. Sweden sometimes, the US or Britain or ….. wherever…… at other times. But mostly here. And that means that after getting an address sorted, I’m going to need some wheels.
Can you imagine driving a car with a cockpit like your living room, complete with swivel chairs, cabin-wide screens and electronically tinted glass to keep out the sun? How about active suspension systems that automatically adjust camber and toe according to driving conditions, along with composite inboard braking, or even wireless driving, braking and steering.
Sounds like fantasy-land? Perhaps. But it’s all being talked about right now.
In a former life, at SaabsUnited, I reported early this year on a project that Saab were participating in, one that will see a concept vehicle built and exhibited by the middle of 2013.
The following quote is from Swedish publication, Ny Teknik, a report from which was used as the basis for the SU story:
The concept car, which will be completed by summer 2013 will include solutions that make it possible to build cars 20 to 40 percent lighter than today, without making major compromises elsewhere. Last fall, Saab invited the Scandinavian suppliers to a workshop to reflect together on new solutions.
That was back in January. Today, I had the pleasure of attending the group’s second workshop, where all of the participants came together once again to share their first conceptual impressions of how the project might progress.
Let’s step back for just a moment, though, and take a look at the project in general.
The project has earned the name Så Nätt, which Saabophiles will be familiar with from the Saab Sonett sports car range. The name means “so neat”, which is one of the goals of this car. The Saab Sonett was also an exceptionally light car with a fibreglass body and lighweight two-stroke and V4 petrol engines.
There are nearly 40 participants in the project, which is acting as a kind of think-tank for future car design and collaboration. Saab is the largest of the participants and the only vehicle manufacturer. There are also around 30 different component suppliers involved, as well as 6 academic institutions and FKG, the key association for automotive suppliers here in Scandinavia. FKG represents around 350 separate suppliers here in Sweden, so a 10% representation should provide good feedback for the rest of the supplier body.
As stated in the Ny Teknik article quoted above, one of the goals of the project is to devise lightweight solutions that can bring down the weight of a car by between 20-40%. The benefits from this kind of weight loss would be significant, from emissions and fuel consumption to maneuverability, crash avoidance and handling.
That’s just one of the goals, however.
Perhaps the more important goal is to get suppliers to work together with a manufacturer to achieve this goal. The end result will be a concept car that’s sure to be an exciting vehicle to see. It’s the road map to achieving that end result that will be just as interesting, if not more interesting, to the participants in the project.
Sweden is typically made up of lower tier suppliers. Tier 1 suppliers have a much greater say in the design and composition of parts used by manufacturers. Tier 2 and 3 suppliers generally have the requirements for the components they supply spelt out for them. This project gives typically smaller suppliers a chance to have input in a product from the outset, which is a major change in the landscape they work in.
The project is divided into a number of component parts or project groups. The purpose of today’s workshop was to bring those project groups together to share what they’ve come up with in their respective areas. The project groups are:
Seats
Chassis
Front Structure
Cockpit IP
Floor Concept
Polymers and Composites
Roof structure
Each project was presented by a project leader and presentations generally featured three or four options as solutions for their project – a near-term solution, a mid-term solution and a futuristic solution.
As you can imagine, some of the futuristic solutions were quite imaginative.
How about floor structures that can extend at higher speeds to decrease drag? Or detachable front sections of a car that you can remove and upgrade (think 2007 to 2008 Saab 9-3 front upgrade with minimal hassle or cost)? Wheels/tyres that are capable of leaning over in corners like a motorcycle? Or even a three wheeler with a single wheel that can pivot 360 degrees!
There were discussions about the use of composites in new and exciting ways, as well as the use of textile materials, where appropriate, to solve weight problems where structural rigidity can be taken care of elsewhere. There was even one proposal with an Aero-X type canopy roof.
Many of the futuristic concepts were for vehicles featuring electric propulsion and some were even self-driving vehicles with the capability to brake automatically or divert the vehicle in the event of an impending accident.
The secondary goal of working together to achieve solutions was quite evident and the buzz around the room was palpable as people asked questions and explored the ideas presented even further. The next step is to extend this approach, complete the project and use the lessons learned to develop new business opportunities from the ideas that arise.
The options presented were all quite exciting and I’m looking forward to attending another workshop in the future to see how things progress.
REMINDER – Those of you attending the New York Auto Show this weekend…… don’t forget to get your photo in so that you can WIN!
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A couple of notes about the New York Auto Show, which continues until its close on Sunday evening…..
What is your view of Saab?
If you’re attending the New York Auto Show, then make sure you track down one of the attendants at the Saab stand and get your hands on the Sony Ericsson Xperia in their pocket.
Saab and Sony Ericsson are running another photo competition at the New York Auto Show and there are some fantastic prizes available every day and a grand prize at the show’s conclusion. To enter, simply use the Xperia’s camera to take a photo at the Saab stand showing “your view of Saab”. You will be asked for an email address for the entry, but this email will only be used for the purposes of the competition (i.e. to notify you if you win a prize).
Daily winners receive a MW600 wireless HiFi headset that can pair with your phone, PC or provide music on the run with it’s built in radio.
The grand prize winner at the end of the show will win the Sony Ericsson Xperia Play, the first phone to couple a Playstation control for gaming and a full-feature Android phone together in one slick device.
The photo contest has had a great reception so far and you can read full details about the competition, as well as seeing all the entries so far, over at Saab’s Facebook page. Here’s a sample of what you’ll see:
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Make sure you pick up a program at the show, even if only as a Saab souvenir.
Why? Well, take a look at the front cover (at right).
That’s the Saab PhoeniX concept dominating the program, which is a fantastic coup for Saab. It continues a long line of Saab concept car success, following on from the Saab Aero-X and Saab 9-X BioHybrid and 9-X Convertible concepts, all of which won accolades at their respective auto shows.
Years from now it’ll be the PhoeniX concept that kids remember first when they thumb through their copy of the program once again.
Spyker Cars NV had a press release today outlining the company’s first quarter interim financial results. You can access the full report here.
For the audience of Inside Saab, it would be appropriate to take an extract from that release, looking at recent events and the future outlook for the company.
Of particular note:
Focus on securing the medium and long-term financial structure of the business.
Approval from NDO for Vladimir Antonov to take an ownership stake in the business.
Discussions with potential strategic partners in China.
Proposed name change to Swedish Automobile NV.
Reassessment of sales and financial targets in the coming year.
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NEAR TERM MANAGEMENT PRIORITIES
Management will continue to focus on its strategy in making Saab Automobile a profitable, independent niche premium car manufacturer, while reducing risks in the execution of the plan. Upon successful completion of securing short-term funding to restart production, Management will continue to focus on strengthening its financial position and stabilizing its operations through securing additional mid- and long-term financing. Management is in talks with several parties to secure access to this funding. A major step forward in this respect was made on 28 April 2011 when the NDO approved Mr Vladimir Antonov as a shareholder of Spyker (see hereafter under Recent Events) Further key management priorities remain:
Continue product development activities in order to refresh and expand the entire product portfolio
Continue to build up an independent Saab distribution organization
Continue to build up capabilities as an independent company
Manage cash and control costs and capital expenditure tightly
Continue to focus on initiatives to further reduce the break-even point
In summary: all measures to continue to restore confidence with our valued customers, dealers, suppliers, shareholders and other stakeholders in order to support increasing sales and improved margins from a rejuvenated product portfolio.
In addition to driving the ongoing business operations, Management will continue to focus on execution of its long term business plan. Saab Automobile will continue to enhance its unique and strong brand, relying on its heritage of innovation, aircraft inspiration and Scandinavian values. In line with the objective to shorten product lifecycles and broadening of its portfolio, in 2011 alone four new models will be launched into markets around the globe, among which the 9-5 SportCombi and the new Saab 9-4X (Saab’s first ever cross-over).
RECENT EVENTS
On 5 April, production of Saab vehicles at the Trollhättan factory was again interrupted due to materials shortages caused by outstanding payment (terms) issues with a number of suppliers. On 6 April, Saab Automobile decided to halt production until further notice pending confirmation of additional funding for operations. Although this is a set back in the production and sales, Management is confident that with secured funding the effect of lower production can be recovered during the course of the second and third quarter.
In addition, Saab Automobile continues to work on longer-term solutions to further strengthen its financial position and improve its capital structure including but not limited to discussions with potential strategic Chinese partners.
Spyker Cars NV proposes to change its name into Swedish Automobile NV at the next Annual General Shareholders meeting 19 May 2011.
OUTLOOK
Management is now fully focused on securing the short and mid-term funding and restoring confidence among suppliers, customers, employees, shareholders and other stakeholders given the recent liquidity issues and production interruptions . However, 2011 and 2012 are build-up years for Saab Automobile and although volume and market share are important, Management’s key objective is to secure mid and long-term financing, renew and expand the product portfolio, enhance the distribution organization and build an independent company, while remaining within the financial boundaries set in its business plan.
The Group’s medium term goal is to establish Saab Automobile as an independent, financially viable, niche premium car manufacturer. Given the recent liquidity and production situation, previously communicated sales and financial targets will be reassessed as soon as the consequences of this situation on the Group’s operations become clearer. Management notes that Saab Automobile will be launching several new models into global markets later this year which should have a positive effect on sales volume during the second half of the year. The Group foresees a net loss for 2011.
Saab and Spyker are working on many different fronts to secure funding in the short and medium term. Negotiations with various, potential strategic partners, including the Chinese car manufacturers will continue.
Spyker reports Q1 results
Today Spyker presents the first quarter report for 2011. Since Saab Automobile is a major part of Spyker’s results, the major focus in the report is on Saab. Spyker Cars (including Saab Automobile) reported an EBIT of (79.4) million Euro. The report underlines the fact that 2011 is another buildup year for Saab, and Saab assumes a loss for the full year as well. Note that the events of the recent weeks are not covered by the report, as it focuses on the first three months of this year. The first quarter can be summarized as challenging but also showed encouraging sales development.
The following press release was issued today by Spyker Cars NV, owner of Saab Automobile.
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Zeewolde, The Netherlands, 28 April 2011 – Spyker Cars N.V. (Spyker) confirms the announcement of the Swedish National Debt Office (NDO) to allow Vladimir Antonov as a shareholder of Spyker.
Victor Muller, CEO of Spyker and Chairman of Saab Automobile said:
“This is a great day for our company and for me personally. We worked relentlessly for 11 months to achieve the desired result: restore the reputation of Vladimir Antonov, who made so many valuable contributions to Spyker since 2007 as financier and shareholder. We are convinced he will be able to make such contributions again in the near future and look forward to the decisions of the Swedish Government, General Motors and the European Investment Bank (EIB), following the recommendation of the NDO which was the result of intense scrutinising.”
Vladimir Antonov, Chairman of Conversgroup said:
“I am very happy finally getting the recommendation from the NDO to the involved parties, being a future investor in Spyker. The past months of speculations around me, as an individual investor and my businesses has been exhausting. Clearly this has been a disturbing factor for many of my businesses. Finally we have managed to obtain a clean bill of health and we need to move fast forward to secure the cash flow of Saab Automobile. I hope all involved parties now further take on their responsibility so we can close all processes fast to secure the future of Saab Automobile.”
Spyker and Saab Automobile continue to work on securing funding. Saab Automobile is still in talks with the EIB and all parties involved on a solution to complete the sale of Saab Automobile Property AB (Saab Property). It is not yet certain whether the above parties will be able to fulfil all of the conditions of the EIB and finalize the sale of Saab Property.
In addition, Spyker and Saab Automobile are negotiating equity and debt financing and/or technology licensing with various strategic partners, including various Chinese car manufacturers. No commitments have been received to date.
I was up at the Saab Technical Center yesterday, gathering some material for a post that will appear here on Inside Saab next week, when I saw these fantastic old black and whites showing some Saab crash testing conducted back in the late 1960s.
Saab’s crast test facility here in Trollhattan is now a very high-tech affair, having been completely refurbished just a few years ago. I’m hoping to visit there in the next few days as they’ll be conducting some tests that I hope to share here on site (no promises, now, but fingers crossed).
As you can see from these photos, the crash test facilities of the 1960’s were somewhat more spartan and weather dependent.
