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.
On 28 April 2011 the Russian businessman Vladimir Antonov was admitted by the NDO to become a shareholder of Spyker.
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.
