Category: News

The process with China and preparing for GM continues

As you may have read in news reports earlier today, discussions are ongoing with our Chinese partners as we try to negotiate a solution that will satisfy all parties.

Reuters:

China’s Zhejiang Youngman Lotus Automobile Co said it still wanted to invest in ailing car maker Saab after General Motors said on Monday it would stop supplying components and technology if Pang Da Automobile and Youngman succeeded with their acquisition bid.

Youngman director Rachel Pang said on Wednesday the company will do “everything they can” to support Saab’s survival. She told Swedish news agency TT Youngman still wants to buy Saab.

“Of course we do. If you are afraid you cannot succeed in business. There are always difficulties. One has to find solutions, not just give up,” she was quoted by TT as saying.

And the Wall St Journal:

Saab Automobile AB said Wednesday that it is discussing a new ownership structure with its Chinese investors, trying to save plans of selling the cash-starved company after former owner General Motors Co. objected to the deal.

“The purpose of these discussions is to find an ownership structure that everyone can agree on,” said Saab Automobile spokesperson Gunilla Gustavs, noting that the proposed 100% Chinese ownership “was an issue for GM.” Ms. Gustavs didn’t provide further details of the discussions.

From an internal point of view here at Saab, we continue to pursue all of our current objectives, which include but aren’t limited to these discussions.

Since GM’s statement on Monday night, we continue to work with Youngman and Pang Da to prepare to respond to GM’s questions on the proposed sale transaction of Saab Automobile AB to Pang Da and Youngman.

The Saab management team is preparing an in-depth communication package that clarifies the new business plan and the intentions for the future. The purpose is to present this to GM and clarify the intentions with the operations in China, thus seeking GM’s consent for the transaction through discussion and negotiations.

In parallel, the other processes continue, both those regarding approvals and those referring to the reorganization. Project Cheetah goes on as well, with the aim to create a new cost structure for Saab next year.

We had a setback, but in the Saab tradition, we keep moving on toward the goal. If our recent dealer tours through Germany and Austria are anything to go by, then the product and the customers demand it.

Saab reach 100,000 Fans on Facebook

A few weeks ago we asked for your Saab photos to help us celebrate reaching 100,000 fans on Facebook.

Today, we’re there!

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Saab celebrate 100,000 Fans on Facebook

Saab today celebrated an online milestone, with 100,000 fans choosing to join the brand’s Facebook page.

“This is a wonderful milestone for Saab. We have always had a significant online presence for a company of our size, with much of it being fan-driven. To reach over 100,000 fans on Facebook is further testimony as to how much our fans like to associate themselves with our company” said Knut Simonsson, Vice President Brand & Marketing at Saab Automobile.

Saab’s Facebook page started as a fan-driven initiative. When Facebook opened its services to brands, a web-savvy Saab fan named Kroum Vassilev in Toronto, Canada, started a Saab Cars page. With occasional updates and simple organic growth, the page attracted over 13,000 fans on its own. Mr Vassilev contacted Saab Automobile AB in Sweden and offered to transfer the page to their ownership in October 2009.

Since then, the page has continued to grow, with fans from all over the world now getting updates from Saab and sharing their Saab photos and stories online.

“Our oldest Facebook friend is every bit as important as the most recent one.” said Simonsson. “The Saab fans are very active. They are always busy, uploading and sharing images, telling stories, and even assisting one another with advice when necessary.”

To celebrate this historic occasion, Saab fans from all over the world contributed over 1,200 photos through various social channels, which have been used to build a selection of mosaic images. These mosaics, featuring both historic and new Saab vehicles, are available for download by fans at the Saab Cars Official account on Flickr.

Some fast Facebook facts:

  • The top 5 locations for Saab fans on Facebook are: Sweden, United States, Italy, United Kingdom and Finland.
  • The typical fan is male, and between 25 and 34 years of age.
  • 76% of fans are male, 21% of fans are female, and we are still trying to identify the remaining 3%.
  • The single busiest day for new “Likes” was on the 23rd February 2011, with 7,384 fans joining the Saab Cars Facebook community that day.
  • A normal day sees a net increase of approximately 80 new fans

Saab’s Facebook page is part of a multi-channel social media strategy that includes the Inside Saab weblog, a dedicated Saab official channel on Youtube, the Saab Newsroom as well as accounts on Twitter.

Facebook – http://www.facebook.com/saab
Inside Saab – http://inside.saab.com
Youtube – http://www.youtube.com/saabcarsofficial
Newsroom – http://newsroom.saab.com
Twitter – @inside_saab and @saabnewsroom
Flickr – http://www.flickr.com/photos/saabcarsofficial

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The mosaics are below.

There are two different sizes of each available at the Saab Cars Official Flickr page. One is super-big for your detailed enjoyment. The other is set at 2560 x 1440 pixels, suitable for custom sizing for your computer desktop.

ENJOY!! And thanks for your support, and your contribution.

Swedish Automobile N.V.: EXTRAORDINARY GENERAL MEETING OF SHAREHOLDERS STILL TO BE HELD ON 11 NOVEMBER 2011

Not so much one about Saab, but I know we have a few SWAN shareholders who tune in here…..

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Zeewolde, The Netherlands, 1 November 2011 – Swedish Automobile N.V. (Swan) announces that the Extraordinary General Meeting of Shareholders (EGMS) will still be held on 11 November 2011. Further information on the sale of Saab will be provided at the EGMS.

The EGMS was convened after agreements were signed with Pang Da and Youngman, which related to an equity investment in Swan and the formation of manufacturing and distribution joint ventures with Saab Automobile AB (Saab Automobile) for Saab branded vehicles in China. The agenda for the EGMS on 11 November 2011 includes:

    1. the amendment of the articles of association of Swan (introduction of a one tier board structure and increase of the authorized share capital);

    2. composition of the board of Swan (including the appointment of new board members).

On 23 October 2011, Swan announced that the equity investment agreements with Pang Da and Youngman had been terminated, and on 28 October 2011 Swan announced that a new Memorandum of Understanding (MoU) had been entered into with Pang Da and Youngman. In terms of the MoU, Pang Da and Youngman will purchase all of Swan’s shares in Saab Automobile and Saab Great Britain Ltd. (Saab GB) for an amount of EUR 100 million. Amongst other things, this share sale is subject to approval by Swan’s shareholders.

As a consequence of the termination of the equity investment agreements with Pang Da and Youngman, at the EGMS Swan’s shareholders will not be asked to vote on amendment of Swan’s articles of association nor to appoint new board members.

However, the EGMS will still be held on 11 November. At the EGMS, Swan will give shareholders further information about the structure of the new transaction with Pang Da and Youngman, and will discuss that transaction with shareholders.

A further extraordinary general meeting of shareholders will be convened soon to ask the general meeting to approve the sale by Swan of its shares in Saab Automobile and Saab GB. The minimum convocation period is 42 days. Nevertheless, given the challenges faced by Saab Automobile and the nature of the new transaction with Pang Da and Youngman, Swan is of the view that it is important to discuss the new transaction with shareholders as soon as possible and urges all shareholders to attend the EGMS on 11 November 2011. Applications to attend can be made up to and including Friday 4 November 2011.

Saab's reorganisation continues

UPDATE: The following press release has just been issued.

District Court APPROVE REORGANIZATION Voluntary Continuation

Zeewolde, The Netherlands, 31 October 2011 – Swedish Automobile NV (Swan) announces that the District Court in Vanersborg approve the continuation of the voluntary reorganization of Saab Automobile AB and its subsidiaries Saab Automobile Powertrain AB and Saab Automobile Tools AB following the creditors meeting of this morning.

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I don’t have any further details on this, but I’ve just noted a tweet from one of my colleagues at Saab:

Good news. We continue on with our approvals and reorganisation.

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You can read a detailed copy of the Preliminary Reorganisation Plan at this link (pdf).

A summary is available via pres release at this link.

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Press Release: Information On Restructuring Plan for Saab Automobile

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 available for download via www.swedish-automobile.nl (pdf) and http://media.saab.com.

Press Release: Saab Automobile Appoints Göran Ejbyfeldt As New Vice President & Head of Manufacturing and Quality

Trollhättan, Sweden: Saab Automobile AB (Saab Automobile) has appointed Göran Ejbyfeldt as new Vice President & Head of Manufacturing and Quality effective 1 December.

Ejbyfeldt succeeds Gunnar Brunius, the current Vice President Manufacturing & Purchasing, who will pursue a new opportunity in his career with Volvo Aero AB. Ejbyfeldt will assume responsibility of manufacturing on top of his current role as Executive Director Quality, Environment & IT.

Kjell-Åke Eriksson will be added to Saab Automobile’s top management team as Executive Director Purchasing and will report directly to CEO Victor Muller.

Victor Muller speaks about Saab sale

Saab’s Chairman and CEO, Victor Muller, spoke with Swedish Radio this morning about the deal just announced to sell Saab to Youngman and Pang Da.

As you can tell, the whole thing’s been pretty tiring for him and the Saab executive team. Saab lives, as we all believed it should.

Lyssna: Victor Muller om att Saab blir kinesiskt

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Press Release: SWEDISH AUTOMOBILE SIGNS MOU WITH PANG DA AND YOUGMAN FOR THE SALE OF SAAB AUTOMOBILE AND SAAB GB

Zeewolde, The Netherlands, 28 October 2011 – Swedish Automobile N.V. (Swan) announces that it entered into a memorandum of understanding with Pang Da and Youngman for the sale and purchase of 100% of the shares of Saab Automobile AB (Saab Automobile) and Saab Great Britain Ltd. (Saab GB) for a consideration of EUR 100 million.

Final agreement between the parties is subject to a definitive share purchase agreement between Swan, Pang Da and Youngman, which will contain certain conditions including the approval of the relevant authorities, Swan’s shareholders and certain other parties. The consideration of EUR 100 million will be paid in instalments. An important consideration for Swan to enter into the transaction is the commitment of Pang Da and Youngman to provide long term funding to Saab Automobile.

The administrator in Saab Automobile’s voluntary reorganisation, Mr. Guy Lofalk, has withdrawn his application to exit reorganisation. The MOU is valid until November 15 of this year, provided Saab Automobile stays in reorganisation.

Press Release: SWEDISH AUTOMOBILE ISSUES SUBSCRIPTION NOTICE UNDER GEM FACILITY

Zeewolde, The Netherlands, 28 October 2011 – Swedish Automobile N.V. (Swan) announces that it issued a subscription notice for 3 million shares under the current EUR 150 million equity facility between Swan and GEM Global Yield Fund Limited. The exact number of shares to be issued and the price thereof will depend on the pricing period which commences today.

In light of recent developments, North Street Capital, LP will not subscribe for 2.3 million shares in Swan and revoked its commitment to provide a loan of USD 60 million to Saab Automobile.

Press Release: Swedish Automobile Terminates Subscription Agreement With Pang Da And Youngman

Trollhättan, Sweden: Today, Swedish Automobile N.V. (Swan) announced that it has given notice of termination with immediate effect of the Subscription Agreement of July, 2011 entered into by Swan, Pang Da and Youngman.

Swan took this step in view of the fact that Pang Da and Youngman failed to confirm their commitment to the Subscription Agreement and the transactions on the agreed terms contemplated thereby as well as to explicit and binding agreements made on October 13, 2011 related to providing bridge funding to Saab Automobile AB (Saab Automobile) while in reorganization under Swedish law.

Pang Da and Youngman have presented Swan on October 19 and 22 with certain conditional offers for an alternative transaction for the purchase of 100 percent of the shares in Saab Automobile which are unacceptable to Swan. However, discussions between the parties are ongoing.

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