Tag: Saab company

Press Release: Court rejects voluntary reorganization application. Saab Automobile to appeal decision

Zeewolde, The Netherlands, 8 September 2011

Swedish Automobile N.V. (Swan) announces that the District Court in Vänersborg, Sweden today rejected the proposal for voluntary reorganization by Saab Automobile AB and its subsidiaries Saab Automobile Powertrain AB and Saab Automobile Tools AB (collectively Saab Automobile). Saab Automobile is disappointed with the ruling and will appeal the District Court’s decision.

Swan will update the market tomorrow on further developments.

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UPDATE:

A press conference was just held here in Trollhattan where Chairman and CEO Victor Muller confirmed that Saab would be appealing the decision handed down today.

Victor Muller said that he was surprised and disappointed by the decision, that he thought Saab had satisfied what was believed to be the burden of proof to have a reorganisation application approved.

Obviously the court disagreed and now we will be ‘throwing the kitchen sink’ (i.e. absolutely everything) into the appeal documentation.

Video of the press conference below (h/t to SU for picking this up)

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UPDATE:

Further information, shared internally this afternoon but not sensitive, just confirmation of what’s been written above.

What happens next?

Saab has decided to appeal the district court’s decision.

Why?
The company believes that there is potential to continue successfully after a reorganization.

What happens now?

The company will analyse the district court’s decision with the help of legal counsel in preparation for an appeal.

Saab will supplement the original application with additional facts.

As the company now finds itself in a vulnerable situation, we have contacted the company’s stakeholders, including suppliers who have claims on Saab and the unions, in order to maintain a dialogue on the situation.

Tomorrow the company will give further information on the next steps in the process.

Today at Saab Automobile – reorganisation announcement

Saab Automobile lodged an application for reorganisation today. A decision on this application is still pending as I write this. If granted, the reorganisation process will allow us court protection from creditors’ actions whilst we continue making the financial arrangements we need to carry us into our long-term deals with partners from China.

As you might imagine, it was a pretty busy day here today. I am preparing some text on the reorganisation process, some plain-speak on what it will mean for Saab and our stakeholders, but that will have to wait until the court’s decision is announced.

For now, I thought you might be interested in a first-hand view of some of the things that happened here today.

We started the day with a meeting around 9am to take the marketing, sales and aftersales teams through the press release and associated points about the actions taken today. The meeting was led by Matthias Siedl and Knut Simonsson, our global sales and marketing chiefs.

Following this, there was a presentation by Victor Muller to the full workforce at Saab inside the factory in Trollhattan.

Victor spoke about all manner of things regarding the current situation and introduced Mr Guy Lofalk, the administrator nominated by Saab to take charge of the reorganisation process. Mr Lofalk also oversaw the previous reorganisation when Saab was owned by General Motors in 2009.

Victor Muller explained the road that Saab had taken over the last few months and included his personal apologies for the current delays in wage/salary payments, explaining that the filing today would help staff to get paid sooner, whilst providing a more stable and certain environment for Saab to pursue their funding requirements.

Staff were offered the opportunity to ask questions a small number of them took this opportunity before the meeting dispersed.

L to R: Guy Lofalk, Kristina Geers and Victor Muller

Saab expected a decision from the court in Vanersborg at 2pm, however the decision has been delayed and is now expected at 2pm Thursday. A press conference scheduled for 2:30pm still went ahead and was well attended. You can see a recording of the press conference, recorded by Saabs United here.

Victor Muller spoke to the gathered press as a group before taking questions, and then stopping for individual interviews.

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As mentioned earlier, I’ll have a few more thoughts to share on the reorganisation meaning and implications but that will have to wait until we have received a decision from the court, due around 2pm tomorrow, Swedish time.

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Press Release: Saab Automobile AB Files For Voluntary Reorganization

The following is a release from Swedish Automobile:

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7 September 2011

Saab Automobile AB Files For Voluntary Reorganization, Saab Automobile Parts AB And Overseas Subsidiaries Excluded

Trollhättan, Sweden: Swedish Automobile N.V. (Swan) announces that Saab Automobile AB and its subsidiaries Saab Automobile Powertrain AB and Saab Automobile Tools AB (collectively Saab Automobile) will file for voluntary reorganization today at 09:00 CET with the District Court in Vänersborg, Sweden. Swan and Saab Automobile are of the opinion that, considering Saab Automobile’s current limited financial resources, a voluntary reorganization will entail the best preconditions for using existing resources in the most efficient way. The eventual purpose of the proposed voluntary reorganization process is to secure short-term stability while simultaneously attracting additional funding, pending the inflow of the equity contributions of Pang Da and Youngman.

The proposed voluntary reorganization will be a self-managed, legal process under Swedish law headed by an independent administrator appointed by the court who will work closely with the Saab Automobile management team. As part of the process, Saab Automobile has formulated a reorganization plan, which includes a number of aspects aimed at lowering its cost-base and creating a viable, competitive and independent organization. This reorganization plan will be presented to creditors in more detail within three weeks of the filing, although this period could be extended by the court.

Following court approval, the voluntary reorganization will be executed over an initial period of three months. If required, the reorganization period can be extended by another three months, up to a maximum of twelve months. Swan and Saab Automobile are confident that they will secure additional short-term funding for the reorganization period and are currently in negotiations with several parties about obtaining such funding. Funding for Saab Automobile to exit reorganization has been secured through binding agreements with Pang Da and Youngman as announced on July 4, which agreements are, however, subject to obtaining certain approvals.

As part of the reorganization filing, the court-appointed administrator will apply for the Swedish state’s wage guarantee scheme to allow wage payments to all Saab Automobile employees to be made. August salaries are expected to be paid within a short time frame following the court approval. With regards to outstanding debts to creditors, Saab Automobile will seek the support of its creditors for the reorganization process and is confident it will obtain this support, particularly because Saab Automobile aims at full redemption of outstanding debts.

Saab Automobile has proposed that the District Court appoints Swedish lawyer Guy Lofalk as administrator, who also was the administrator in the successful 2009 Saab Automobile reorganization. Victor Muller, CEO of Swan and CEO and Chairman of Saab Automobile, and the Saab Automobile management team will cooperate closely with the administrator to execute the reorganization plan. The voluntary reorganization process will cover Saab Automobile AB, Saab Automobile Powertrain AB and Saab Tools AB. All other entities, including Saab Parts AB and all overseas entities such as Saab Great Britain and Saab Cars North America, are excluded from the reorganization.

The reorganization plan contains a blueprint of how Saab Automobile’s Management expects to improve Saab Automobile’s business model with an emphasis on an independent, lean and competitive organization. Many key elements of Saab Automobile’s original business plan remain, as Management believes the objectives of the overall strategy remain intact. Through the roll-out of a fully rejuvenated product portfolio, partnerships with Chinese firms Pang Da and Youngman that will ensure access to the world’s largest and fastest growing market, and a strong and global brand, Saab Automobile is well-positioned to realize its objective of becoming a viable independent premium car manufacturer.

Victor Muller, CEO of Swan and CEO and Chairman of Saab Automobile, said: “Since securing the long-term funding through conditional agreements with Pang Da and Youngman, who both support this voluntary reorganization, we have focused on securing funding to bridge the period until we receive their funds. We have concluded that a voluntary reorganization process will provide us with the necessary time, protection and stabilization of the business, allowing salary payments to be made, short-term funding to be obtained and an orderly restart of production to be prepared.”

“While the voluntary reorganization process will no doubt present us with a number of tough issues and decisions, I believe that Saab Automobile will emerge stronger from this process. The potential for Saab Automobile as a viable, independent premium car manufacturer is there, as shown by the rejuvenation of our product portfolio, approximately 11,000 orders and the conditional long-term funding already in place through the binding agreements with Pang Da and Youngman that will give us access to the Chinese market.”

“I would also like to express my deep gratitude to our employees, dealers, suppliers and all other stakeholders who have been so patient and understanding in the past trying months. I realize that we have severely tested their patience, but it has been heartening to see that in general, our employees, dealers, suppliers and other stakeholders have stood by us through this tough period. I look forward to continuing these relationships and collectively start building a brighter future for Saab Automobile.”

Press Release: SWEDISH AUTOMOBILE N.V. including SAAB AUTOMOBILE AB REPORTS ITS SEMI-ANNUAL RESULTS 2011

Management working on different scenarios to secure funding and ensure longer term continuity of Saab and Group

Zeewolde, the Netherlands, 31 August 2011 – Swedish Automobile N.V. (Swan), a holding company that owns subsidiaries which produce and sell premium automobiles under the Saab and Spyker brands (together referred to as the “Group”), today announces its interim results for the first half year 2011 ended 30 June 2011. The Group is listed on NYSE Euronext Amsterdam (ticker symbol SWAN).

FINANCIAL DEVELOPMENTS H1 2011

  • H1 2011 sales of € 359.0 million, Q2 sales of € 101.9 million
  • H1 EBIT of € (201.5) million, Q2 EBIT of € (122.2) million
  • Cash generated from operations in H1 amounts to € (44.9) million
  • Securing additional funding, restarting production and stabilizing operations top priority for management
  • Longer term financing of EUR 245 million conditionally secured through agreements with Pang Da Automobile Trade Company Ltd (“Pang Da”) and Youngman Automotive Group Company Ltd (“Youngman”)

OPERATIONAL DEVELOPMENTS H1 2011
Sales performance seriously affected by production stoppages and tight liquidity situation during second quarter

  • 12,871 cars sold (wholesale) in H1 2011 compared to 10,240 in H1 2010, an increase of 26%
  • 15,194 cars sold (retail) in H1 2011, up 44% compared to 10,535 in H1 2010
  • 12,877 cars produced in H1 2011, compared to 11,851 in H1 2010, an increase of 9%
  • 3,197 cars sold (wholesale) in Q2 2011 compared to 7,984 in Q2 2010, a decrease of 60%
  • 5,801 cars sold (retail) in Q2 2011, up 5% compared to 5,539 in Q2 2010
  • 1,989 cars produced in Q2 2011, compared to 9,497 in Q2 2010, a decrease of 79%
  • Roll-out of Saab 9-4X into markets underway, first cars sold in US

Victor R. Muller, CEO of the Group and CEO and Chairman of Saab Automobile, said: “It will come as no surprise that this has been an unbelievably tough quarter for this company. Nothing is worse than having to delay salary payments to your loyal employees and they deserve nothing less than my sincere apologies. Moreover, our ever tighter financial situation resulted in sustained production stoppages, lost revenues and a significantly increased operating loss. Our business plan is under review pending completion of funding negotiations and to reflect ventures with our future partners Pang Da and Youngman.”

“There are rays of light on the horizon as well. We have booked good progress in negotiations with our suppliers on payment and delivery terms, and we continue our effort to secure additional near-term funding to enable a sustainable restart of production. Investor interest exists in Saab Automobile based on a continued belief in the long-term prospects for the brand and the company. Despite the company’s current predicament, they recognise the potential of the Saab business: several new vehicles waiting to be launched in global markets, loyal customers who continue to order cars to this very day, a strong premium brand, committed and well-funded new Chinese partners and a highly-skilled workforce responsible for many innovations in the automotive business.”

“However, we know that we can’t look too far into the future just yet. Right now, the focus of Saab management is on working as hard as possible to bring the company back into calmer waters by significantly strengthening our financial position, reaching agreement with all our suppliers on payment and delivery terms and restart production as soon as possible. We are evaluating all available options in order to secure continuity of Saab Automobile.”

The half-year report and financials are available for download here (PDF)

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Press Release: SWEDISH AUTOMOBILE TO PUBLISH SEMI-ANNUAL RESULTS ON 31 AUGUST

Zeewolde, The Netherlands, 26 August 2011 – Swedish Automobile N.V. (Swan) announces that it will publish its semi-annual results on 31 August 2011, instead of the previously communicated date of 26 August 2011.

Swan has decided to delay publication as it is currently still in the process of finalizing the semi-annual report.

Inside Saab: More information about salaries and factory staff

Yesterday, we informed staff that there was a risk that the payroll due on August 25 would be delayed. We can now confirm that there is a delay. The company is working hard to secure financing, enabling us to fulfill our commitments. At present we cannot confirm a date for the payment of salaries but we will continue to provide updated information for staff, including information about white collar salaries.

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Continue reading Inside Saab: More information about salaries and factory staff

50 ways to leave your lover

Enthusiast first. Employee (close) second.

One of the reports that’s really turned into a kick in the guts for a lot of the people that I talk to at Saab, and for our dealer body worldwide, is a report going around via the Associated Press at the moment. It’s basis was in Swedish media late last week and elements of this report are now being circulated via AP.

The original report covered the decision of a Swedish dealership chain to drop Saab from its inventory. Holmgrens Bil, the dealership in question, is led by a gentleman named Benny Holmgren and he’s quoted in media as follows (translation from the original Swedish by Stockholm News):

For me, it is important to be proud of the brands that we have. SAAB does not deliver cars as they promise, they do not pay wages to their employees, nor debts to its suppliers, while the owners pick out big money. It does not feel right.

If that quote seems familiar, it’s because I also used it the other day in talking about how erroneous reports can create erroneous perceptions about the company.

There’s a deeper problem, here, however. What motivates a guy like Benny Holmgren to say this?

As noted by one of his colleagues in a report by TTELA, Holmgren has been a Saab dealer for around 20 years. He built his business largely on the back of our products and he proudly notes that his chain is one of the top 5 Saab dealers in the world. That business has grown to such an extent that BMW recently approved Holmgrens Bil’s acquisition of a BMW/Mini franchise. In some ways, we’re pleased for him. Happy dealers are good dealers and we’d love for all of our dealers to be happier right now. But if you’re going to leave a 20-year relationship that’s helped you to grow and build your base for the future, then why leave it by kicking a former business associate so viciously when they’re down?

We are very concerned for our dealerships around the world. We know they have businesses, employees and families to think about and we know that some are taking decisions to either scale back, suspend or even cease their involvement with Saab. We want to hold on to every one of them and get back to building cars for them, but we know that our current situation makes life as hard for them as it is for us.

A decision can be respected. But a public questioning and denouncement of our morals on the way out?

Saab’s problem right now comes down to one thing and one thing only – a cash shortage. We didn’t have enough cash to meet obligations at one stage earlier this year and key suppliers made a decision that it was too big a risk for them to allow us to trade our way out of that situation. To win them back, we need to find the cash.

Our fault. Our task to fix. We are working on it flat-out.

We have set deals in motion to ensure the long term future of the company. We have to wait for those deals to be approved and in the meantime, we need to find a bridge to that future.

We have tried to remain communicative about the situation, but every missed deadline that we’ve communicated leads to a degree of public condemnation, regardless of the sincerity of the stated goal. We now communicate developments when they happen and simply assure as best we can that we’re working to bridge the problem, which we are.

Contrary to the quote above, we have paid our workers, even those who have been idled by the production stoppage for some months now. There have been timing issues with recent payments but we’ve made efforts to overcome those because we are committed to keeping our workforce intact.

And again, contrary to the quote above, our supervisory board members are not taking money out of the company. On the contrary, they haven’t been paid for some time.

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Mr Holmgren’s press statement did two things: It got his name and new franchises in the paper and it made life even more difficult for his (former) contemporaries in Saab dealer-land. I also note with some disappointment and some fear that parts of the media are now actively seeking similar stories and statements from Saab dealers and staff.

We know that we have only one solution to our situation – finding the finance to get things going again on a continual basis. We’re certainly doing all that we can and our #1 goal is still getting back to building cars and supporting our customers and our dealership network.

We certainly appreciate the support that our dealerships have shown for us, and for our mutual customers.

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Press Release: Saab Automobile Informs Employees On Salary Payments

Trollhättan, Sweden: Swedish Automobile N.V. (Swan) and Saab Automobile AB (Saab Automobile) announce that there is a risk of delayed payment of August wages to Saab Automobile employees as some of the funds that were committed by investors may not be paid in time to effect such salary payments.

Saab Automobile is taking all necessary actions to collect these funds in time and continues discussions with various parties to obtain additional short-term funding so that the payments can be made, as well as resume sustainable production. There can however be no assurance that the necessary funding will be obtained or the funds collected.

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Sooooo, if anyone wants to talk about this. Comments are open.

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