Swadeology Archives - Page 3 of 5

My own reflections on today’s positive news……

It’s a strange feeling, to celebrate entering a process that most companies would prefer to avoid. However, it gives you an idea as to how beaten down Saab has been in the public’s mind (and in our own, to some extent) when I tell you that there were, indeed, some small celebrations here today after the court in Gothenburg approved our appeal and granted us ‘reorganisation’ status.

For us as a company, it means that actions against us by unions and creditors are on hold (or withdrawn) whilst we reorganise our operations. It means that we have a stable climate in which we can get our house in order, organise our operations and plan for a re-start of production in an orderly manner without having to fend off arrows from so many different directions.

For our staff, who have done it tough in the last month but have still turned up for work and done whatever they could to keep things going, it means some welcome financial relief.

For our other stakeholders, who have supported us so much in some pretty dark times, I hope that it’s the light at the end of the tunnel getting a little bit brighter. We have a road map for where we’re going and today’s decision will be of great assistance in getting there.

For me personally, and I think for many others as well, there is the realisation that whilst this decision is a positive outcome (it beats the hell out of the alternative), it also means that the real work for Saab begins now (again). This decision gives us some space and some calmer waters in which to operate, but there’s still a hell of a lot of work to be done in order to bring this company around.

We have to negotiate with, and then pay, our suppliers. We have to get production up and running so that we can supply our distributors. We have to reorganise the company so that it’s more efficient and effective. We have to communicate our message effectively whilst giving the papers nothing to write about.

All of that’s going to require a lot of work, but I know that our people are up to the task. Today there was a brief moment where we could feel some relief, but the processes that will underpin our internal reorganisation are already in motion and this is where the real work begins.

I was chatting with a colleague this morning, and he likened this whole drama to a never-ending movie, with all its ups and downs, underdogs, villains and near-death experiences. We both agreed that it would be nice to write the final scene now, one where the main characters go off into the sunset to lead a normal, outwardly boring existence doing whatever it is that they do.

We design and build great Swedish cars. It’d be so wonderful to get back to doing just that.

If you haven’t done so yet, I’d recommend that you read In Saab’s Corner – a series of posts I did a few weeks ago outlining the many things this company has got going for it. We have a lot to share with the world and we can’t wait to do it.

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Follow-up: Why we shouldn’t call the next Saab the “9-3″

When I posted a few days ago about my personal preference for the next new Saab to be called the 900 rather than the 9-3, I was expecting a little bit of controversy and criticism – and it certainly came to pass. I think we had a pretty good and robust discussion, though, and it was good to hear people’s thoughts on the idea.

I’d like to tackle a couple of themes running through the comments and perhaps narrow the discussion down a little bit.

Firstly, I’d like to tackle one misconception that was mentioned. This is a fair assumption on Steve’s part, however…..

With Swade’s status as an employee, I’m assuming he has seen more details of the design. Perhaps he sees something that we can’t yet appreciate.

Actually, I haven’t. The Saab Design studio is a mere 200 meters or so from where I sit, but I haven’t visited there yet. I know that if I see the vehicle it’ll be really, really hard for me to not talk about it. So I’ve made a conscious decision to keep away for the time being. I know a little bit more about the car than the average Saab nut right now, but I’ve not gone to see it for myself.

So with that out of the way, what about a few of the other themes that came through in comments?

Saab should change the range of names to …..

I don’t suggest, nor think, that there’s any value in changing the entire Saab nomenclature. That would require an extraordinary marketing investment and time that we just don’t have. And aside from that, as I mentioned in the original piece, I actually like the 9-3, 9-5, 9-4x way of labelling vehicles. It’s logical, sensible and it looks good on the cars. I’m not writing this with the idea in my head of changing the whole setup.

What I’m suggesting here is that Saab retain the 9-* nomenclature for the entire range, except for the vehicle that will replace the 9-3. I’m suggesting that we change that one and call it a Saab 900. So, when that vehicle comes out, we would have the 900, a 9-5 and a 9-4x.

…….tangent:

I’m just thinking out loud here, but perhaps Saab could retain the 9-3 name for this new vehicle, but use the 900 name for a performance package? Maybe in conjunction with the Aero tag? So you have a 9-3 Linear and 9-3 Vector (or base and Premium, if that’s the way it’s going to go), then move up to the 900 Aero for the top model? Just a quick thought on the side.

/tangent

I know it will be a point of contention for many to have two different naming conventions: 9-* and 900. But is it that much of a problem, really? Step outside the regimented initial thought process for just a moment and I think you’ll see it can work quite easily. The naming convention remains the same except for one model, which uses a classic Saab nameplate.

IMHO, It’s not that hard and still way more understandable and coherent than a bunch of unrelated alpha-based names.

Saab should look forwards, not back

A fair call, but I’m not convinced that it’s right in the context of what I’m suggesting.

I’m not suggesting that Saab should track down the tooling for the original 900 and start building it again. That’s re-tracing one’s steps in a manner that can only lead to oblivion.

What I’m suggesting here is that the 900 moniker still has a lot of value, and that value is better being unlocked and used for the company’s benefit, creating connections between former owners and the new vehicle. It’s better than that value only being saved for retrospective pieces and owners’ gatherings.

If what I’m suggesting is so wrong, then why do we have the Mini today, the Fiat 500, the Alfa Romeo Giulietta, the Dodge Challenger, the Ford Mustang, the Chevrolet Camaro, and of course, the continued existence of the Porsche 911. It’s a mix of successful older badge names attached to new vehicles that carry on the heritage and help to build links with former owners, or new owners who idealised the original cars in their youth.

They key, once again, is to have the right car. If the replacement for the Saab 9-3 has those key Saab features that we all hope for, that combination of performance, utility, safety and comfort/luxury that the 900 did so well, then why not adorn it with Saab’s most purchased and most revered nameplate?

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Thanks again for your input and thoughts. I don’t know what’s actually going to happen with the naming of the 9-3 successor, but it’s nice to toss around this idea and perhaps the people who will actually make that decision are reading this and considering the issue.

Opinion: Why we shouldn’t call the next Saab the "9-3"

Saab’s next all-new vehicle to be unveiled to the public is a little way away at the moment, but I’d like to talk about one aspect of it here today. This post might not win me too many friends, either at the factory or out there in enthusiast-land, but be that as it may….. I’d like to put forward some personal thoughts about nomenclature.

Saab’s next vehicle release will be the most important vehicle release in the company’s history. Why? Because it will replace the current Saab 9-3. This is Saab’s bread-and-butter. Traditionally, it’s the vehicle size that we sell the most, and it’s the vehicle segment that our customers spend the most time shopping around in. I don’t want to sound too dramatic about this (though I’m not sure I can be too dramatic about it, to be honest), but if this vehicle fails, we’re toast.

Given those dire, all-encompassing consequences, I think it’s worth a little extra time thinking about every aspect of this vehicle, including something that can set the tone just right, if it’s done correctly – the vehicle’s name.

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Saab has used a couple of different nomenclature schemes over its history. The common thread is that all but a few of them have involved the number 9. We started with an ascending two-digit code in the Saab 92, got all the way up to the Saab 99 and then went to three digits. Then four digits.

Finally, in a bid to do something new for a new generation of vehicles, we went to our current nomenclature, which is written 9-3 and 9-5 but badged rather cleverly with a to-the-power-of look. It’s modern, it places our vehicles in segments that are logically ordered, segments that can be compared with other manufacturers.

But is it right?

Personally speaking, I’d say both yes and no. I don’t have a problem with our current nomenclature at all, except that I wonder if it’s going to set our new vehicle, our most important vehicle, apart from the rest like it should.

Can we do better? Well, after watching a video a few days ago, an idea came into my head and personally speaking, I think we can.

Some have accused Saab of going too much into BMW territory by naming our vehicles with similar names to the ones that BMW use to segment their vehicle series (3, 5, etc). I don’t think there’s anything wrong with that. As I said before, it’s logical, clean it looks great on the cars.

But I think there’s another German manufacturer that we can take a look at and perhaps learn something from. Check out this video from the Frankfurt Motor Show……

Continue reading Opinion: Why we shouldn’t call the next Saab the "9-3"

Timing of the reorganisation appeal

I hate to sound like a broken record, but I’m going to have to wheel out the mantra we used back when Saab was being sold in 2009/10.

Please observe the non-official spokesmodel to the right (original vendor here and thanks to Hugh for the reminder).

We know that some Saab-related stories seem to cause an almost hysterical reaction here in Sweden, but sometimes it really can be an over-reaction. Take yesterday’s stories about the timing of the bankruptcy filing, for example. It’s a piece of minutiae that gave papers something to report on, but it should have been little more than a minor note.

Here’s how it broke down.

Unions filed their bankruptcy request yesterday. Saab also filed their appeal yesterday, but we filed a little after the 1530 deadline to get it from Vanersborg to Gothenburg on the same day (the 1530 deadline became a story during the day). Swedish news services are now running a “which filing will win the race” theme, which is basically a non-story.

Saab’s appeal filing is expected to be resolved within days. The court first has to agree to hear the appeal. Assuming that happens, the law regarding reorganisation states that a resolution should be forthcoming immediately, which we can loosely expect to mean “as soon as possible”.

We have provided more detailed information that has to be considered, so it may take a little longer to read, but that detailed information should allow for a quicker and more clear-cut decision, too. Bottom line: it is reasonable to expect a resolution of our appeal within days of it being received (technically, it will be received tomorrow).

If left to run its course, the unions’ bankruptcy filing is expected to be resolved in several weeks from now.

Effectively, there is no race. If Saab’s appeal succeeds then wages should be paid under the government scheme and the unions would withdraw their action. If Saab’s appeal fails, then we’re up a very smelly waterway without adequate means of transportation – and plan D kicks in.

So, if you’re a Saab fan and you hear slightly high-pitched reports in the media, don’t panic. If someone you know starts talking about this supposed legal ‘race’, please direct them to the lady pictured above. Or just send them here.

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The start of another rollercoaster week at Saab Automobile

Want an idea of what it’s like working at Saab Automobile right now?

Last week we had a failed application for reorganisation of the company. Downer.
Late in the week, we galvanised and employees heard that the executive team would spend the weekend preparing an appeal. Steady.
This morning we announced a licensing and bridge finance deal. Upper.
And then this afternoon comes news that two of our employee unions have filed for bankruptcy. Downer.

That’s the rollercoaster we’re on at the moment. They say a week is a long time in politics. A single day can be a long time at Saab. If you’re along for the ride – and I know there are a lot of people along for the ride with us – here’s the Swade guide to reading what’s going on in a few key areas right now.

Reorganisation

Our appeal with the Swedish courts has been lodged in Vanersborg and will be on its way from there to Gothenburg this afternoon. We have taken steps to beef up the initial application and some of those steps are now public knowledge.

We’ve provided some more insight into ‘the China process’, for example, which should hopefully give people a better ideas as to why we have a lot of confidence in our arrangements in China.

We’ve also signed an agreement this morning that will provide bridge financing through licensing (not all-out selling) of our Phoenix platform technology.

The rejection of our initial application for reorganisation last week was certainly a surprise and a blow for Saab. However, as Victor Muller pointed out last week, our executive team were ‘throwing the kitchen sink’ into our appeal to ensure that any lack of information noted in the judgement would be addressed.

Bankruptcy filing

As I write this, news stories are beginning to circulate about the fact that two of our employee unions are filing for bankruptcy today. Here’s the BBC article.

These are unfortunate headlines, however when reading them one should bear the timeline for these competing processes in mind. The unions need to act on behalf of their members, so a filing like this is not a complete surprise. However, should Saab’s appeal be a successful one and we are granted reorganisation, the bankruptcy filing would effectively be rendered moot.

We expect a response to our appeal some time later this week, whereas it’s my understanding that the bankruptcy filing would take several weeks to get a verdict. The unions know this, too, but they have an interest in acting for their members and securing payments as early as possible if the worst happens, which is a fair thing to do.

The future?

Can we predict it with any certainty? Of course not. This is has been a story with more twists than Chubby Checker.

BUT…..

We have strong partners on our side and their applications for approvals in China are progressing well. Today’s bridge finance agreement could be taken as a sign of the faith that Youngman place in the future of this company, and the things that they, we and Pang Da believe we can do together.
We have a strong portfolio of Saab vehicles. That’s the reason we’re here in the first place – and it’s only getting better.

If you haven’t read it yet, I recommend you read my series from last weekend, entitled In Saab’s Corner. It takes you through some of the things we’ve got going on right now and I think you’ll find it to be encouraging reading.

Our self-belief and determination isn’t a measure of cockiness. We couldn’t be more humbled than what we are right now and we know that we have a lot of business to take care of when everything gets rolling.

Rather, our self-belief and determination are a measure of the faith we have in the preparations that we’ve made, and in the plans that we have for the future. We can do this. We can get this done. We just want the chance to do so.

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Thoughts on Saab’s reorganisation application and rejection

Enthusiast first. Employee (close) second.

Like most of you who have been part of my personal journey with Saab, I thought we’d seen the end of the extreme ups and downs surrounding this company when it was sold by General Motors last year. The sale process was a tumultuous one, certainly busier than this in a media sense, but I have to say that it was a much brighter landscape to be writing in compared to what we’re facing now.

Back then, we had a rock-solid belief in the future of this company, it’s reason for being here and the potential for it to be a great, niche carmaker once again. A Saab company, independent from General Motors and backed to pursue its own ideas and technologies was (and is) considered to be capable of great things. As a community, we united behind the company because of a common goal and in some ways, a common ‘enemy’ that we saw in GM, who were threatening to close the company down.

This time, it’s a little different.

Continue reading Thoughts on Saab’s reorganisation application and rejection

Comment: Life at Saab this week

One thing’s for sure around here: Life next week is not going to be the same as life this week.

Over the last four months, and especially in the last few weeks, I have come to develop an even deeper respect for the people I now have the privilege of calling colleagues – my fellow Saab employees.

It’s been a tough time here and I’ve faced my own personal challenges as part of that, but I’ve come to realise that I’m surrounded by veterans who have endured plenty of challenges in the past. Some of those challenges have lasted months, some years (heck, if they survived two decades inside GM’s decision matrix, they can survive anything).

More tests are to come this week.

As I write this, we are awaiting the release of our parent company’s mid-year financial reports, which will be published this afternoon. I have no doubt that there will be another outpouring of damaging headlines for Saab as a result of those reports. What else could one expect after spending almost half of that six-month period without making any cars? Whatever rare nuggets of optimistic news might be in those reports, the factory stoppage will most likely dominate the bottom line and the consequences will dominate the headlines here.

As with previous media outrages over management fees, executive pay and dealership loyalty, these headlines will prove to be a current-day outrage based on historical data. I don’t mean to downplay the severity of the results, but we’re already living with the effects of our first six months activity, right now.

No. Financial reports are not what’s foremost in my mind this week. In fact, the financial reports are not even on my personal radar. What’s important right now is the next 36 hours or so.

This week we have a hard, tight deadline from our employees’ unions. Our management team must find money for wages and salaries or the unions are likely to commence actions in the Swedish courts. This is a fast-closing situation and one that has real and immediate consequences.

I wrote a few weeks ago about the fact that our leadership have been working tirelessly on deals to get this company through the short term liquidity crisis that we face. We have long-term deals in place that we’re very confident about, but we need a short-term bridge to get us to those deals. That’s what they’ve been working on and that’s what will continue to be prominent in most Saab employees’ minds in the coming days.

I’ve still been at my desk every day because there have still been things to write about every day. The people I see here are concerned about the future, for sure, but there’s still a sense of camaraderie here – a shared sense of purpose and determination. Despite the troubles of recent times, people still believe in this company, our raison d’être and our growing product program. Some are taking steps to investigate options for the future. Such measures make sense at times like these. But the vast majority are hanging in there because they want to be part of Saab’s success.

So. Tonight we’ll all hunker down. I know the news will be poor and I know that much will be made of this in the media. I also know that in the overall scheme of things, it’s nowhere near as important as what has to come in the next few days.

As I said at the beginning. Either way, life next week will not be the same as life this week.

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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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Wars of Perception

I was talking earlier this week with a prominent Saab person (a non-employee) about the situation Saab is in right now.

He opined that there were two ‘Saab’ entities going around at the moment. One is the Saab that’s constantly the subject of automotive news reports, a company in desperate need of resources and constantly struggling to get to the next safe-point in its existence. The other is a car company that has great new vehicles, some brilliant engineers and designers, a rich history, a great philosophy behind what it does and lots of promising technology.

I tend to agree. I try and write as much as I can about that second Saab because it’s the one that I always wanted to work for, the one that I represent now and the one that excites me when I think of the future.

But of course, the two are inextricably linked. The first cannot operate without the second and right now, the second is very busy getting its house in order. When that happens, we’re going to be very busy rebuilding the confidence of our stakeholders – our customers, dealers, suppliers and others. And this is just another area where we’re going to have a battle to fight.

Continue reading Wars of Perception

Yeah, I’m a believer….

There was an interesting quote in one of the Swedish newspapers today. This is just a Google translation so you’ll have to forgive me if part of the context is lost, but I believe it should come through OK.

Wickelgren says that [Saab employees’] loyalty is in a class by itself.

– They have some kind of fist in the pocket, we will take the world by surprise, just give us a chance. For many of us who do not find ourselves on the inside it’s a bit hard to understand how one can be inspired by something that obviously could have such problems.

I think he’s expressing some wonder at the resilience of Saab employees who stay with the company……. despite the precarious positions described by the news reports…… despite the problems Saab has had in the last two months making salary payments, etc.

I have a colleague here at Saab. He recently finished his studies and Saab is the one company that he had his sights set on working for. He joined the company in the midst of our current situation. Now he’s here, and he recently wrote on a Saab enthusiast site that he’s working on the new 9-3, and will continue to do so regardless of current events, until his access key doesn’t work anymore (should that ever come to pass). That’s the kind of passion that this company can inspire, and this is not an atypical example.

Continue reading Yeah, I’m a believer….