Travelling for a few days and have to be brief.
I am pretty sure that Saab has already been plundered by Victor Muller and his friends and has been left with with very little in the way of assets or cash. It looks like the board members of Saab’s owners increased their directors fees by obscene amounts while Saab has been struggling for cash.
Related:
Victor Muller’s games continue: Are the new Saab shares ending up in Russian hands?
Victor Muller continues pimping Saab around the world and dragging it through the mud to a slow and undignified demise — all just to satisfy his own inflated ego. He continues jetting around the world ostensibly to find new money to rescue Saab but he has never addressed the fundamentals. Saab now cannot pay its workers (but Muller took out a fat bonus on the grounds that Saab had achieved 80% of its business plan!!!!!).
There are demands from the unions that the government should step in — one wonders why and to what purpose? Or that the government should allow Russian dirty money into the company. But these are both incredibly short-sighted suggestions and little more than the empty posturings of an obsolete and decadent trade union.
The fundamentals don’t work and subsidising Saab with taxpayer money is no solution. For 12 years I always drove a Saab (a Saab 9000 and later Saab 9.5’s) and I admire the car and the brand which is still strong. But the cars are no longer competitive and it is time to end the agony and call it a day.
Labour unions have threatened legal action after the owners of Saab, the struggling Swedish carmaker, said it could no longer pay employees’ wages.
Netherlands-based Swedish Automobile – which used to be known as Spyker Cars – said that Saab Automobile, which it owns, would be unable to pay employees’ wages because it had not yet obtained the short-term funding that it was seeking.
The news will fuel doubts about the survival of Saab. Production at its plant in Trollhättan, north of Gothenburg, has been closed for most of the past two months because of a dispute with suppliers over unpaid bills.
http://www.ft.com/cms/s/0/d1a78c26-9d68-11e0-9a70-00144feabdc0.html#axzz1QAFzI4Y7
Swedish Radio has just announced that the agreement between Saab and Hawtai has been suspended and negotiations continue!!!
I have little confidence in Victor Muller and his jet-setting around the world – at Saab’s expense – ostensibly to save Saab, seems more and more like the acts of a charlatan. I have observed earlier that his high-profile chasing of Russian and Chinese money will probably lead nowhere except to prolong the agony for Saab.
Svenska Dagbladet writes:
Saab’s new commercial venture with Chinese Hawtai is at risk of collapse. Saab’s President Victor Muller has already started planning to go to China for new negotiations with previously upset Chinese automakers. But Chinese car companies feel themselves cheated by Muller.
After Hawtai’s delegation visited Saab factory in Trollhättan at the end of last week they were aghast at how bad the situation was. They then demanded tough renegotiations with Victor Muller. If Hawtai and Saab cannot agree before the deadline for the contract expires tomorrow the deal may be over.
According to SvD’s industry sources, the agreement between Dutch Spyker, which owns Saab, and Hawtai is only a framework agreement. The agreement that was presented with great fanfare on 3rd May is full of ecape clauses that Hawtai can use if the parties fail to agree. Now Saab’s President Victor Muller is preparing to travel to Beijing. He will try to repair bridges with Chinese companies he has previously been in conflict with. Two relevant companies are the Great Wall Motor company and the government car giant BAIC. … Neither Great Wall nor BAIC have any affection for Muller. “BAIC can consider buying Saab, but they do not like Muller, they know that he has deceived them”, says a key figure in the affair. … BAIC believed they had the rights to the Saab 9-3 when Saab announced that they intended to produce in China with Hawtai. Until mid-April BAIC negotiated for the Saab dealership in China. And till April 30th Great Wall negotiated with Saab. Great Wall is a large and successful private Chinese automaker. But the negotiations ended because Great Wall needed at least one more week to do a due diligence and to have a board meeting, which Muller felt that the bleeding Saab did not have time for. Three days later, on May 3, he presented the Hawtai agreement. Great Wall reacted very negatively and it was not alone. Even private automaker Youngman Automobile Group of Hangzhou reacted sharply. “We were extremely disappointed and upset”, said one of Youngman’s management team . “ We have a written contract with Spyker that they could not negotiate with any other Chinese company before we were done. We took it for granted that they would follow the rules”.
Spyker had had negotiations ongoing with at least three other Chinese companies, Great Wall, Hawtai and another company. Youngman says they began negotiations for Saab in January. They also signed a letter of intent on cooperation. Youngman Automobile is the only company that has already submitted an application for Saab and an investment permit to the Chinese National Reform and Development Commission, NDRC.
Victor Muller clearly cannot be trusted and his ethics are highly suspect.
For twenty years the Saab 9000 and the Saab 9.5 were my cars of choice until “old age” has forced me to the blend of comfort and power that a Mercedes represents.
But Saab Motors is now on life support and in the hands of a Victor Muller who resembles a quack doctor extracting every bit he can from a dying patient. Saab’s production has been halted while new transfusions of money are being desperately sought – from very strange and dubious Russian and Chinese sources. The employees continue to hope and their attempts to push back the day of reckoning is perfectly understandable. But the fundamental reality is that not enough Saab cars are bought and it has become too expensive for what it is. The technology is still superb but in the meantime the Saab brand is being dragged through mud and manure.
Euthanasia is preferable to this degradation of the brand.
The Chinese money is unlikely to be forthcoming.
Saab’s affaire with Chinese Hawtai has led to questions in the Chinese media. Experts are cautious about the marriage, and it is feared it will be stopped by the authorities. Hong Kong-based Phoenix television station says on its site ifeng.com
“Saab is not Volvo. The established Chinese car companies are not interested in Saab, and therefore this contract has come between Saab and Hawtai, two companies that both are in need to get out of a difficult situation. But what are the chances that the agreement be implemented? “
The Chinese Commission on Development and Reform NDRC, has to approve major transactions between Chinese and foreign companies. “Just as when Tengzhong Heavy Industrial tried to buy the Hummer this agreement between Hawtai and Saab has not been reported to the NDRC in advance, and therefore it has not been approved. It is therefore difficult to say whether this project will be approved. Further, the establishment of a joint venture for the manufacture and sale of Saab Cars is even more difficult.”
In recent times there has been a very strict control on approval of joint ventures for the manufacture of complete cars. “Even the long discussed projects between Changan Mazda Guangzhou Automobile and Mitsubishi, between Changan and PSA Peugeot Citroen, and the proposed Volkswagen plant expansions in Nanhai and Jiangsu are all still waiting for approval. To think that Saab Cars, which does not have as much advanced technology, would be allowed into manufacture and sale in China is less likely.”
Industry observers think that Hawtai’s and Saab’s agreement on strategic cooperation may suffer the same fate as Tengzhongs purchase of Hummer, and ultimately not be anything at all, according to Phoenix.
Even the South China Morning Post questioned whether authorities would approve the deal.
And in the meantime Saab suppliers have had to warn that they may be forced to lay-off their employees.
Photo: DPA
At least eight people died Friday in a huge blaze on a motorway in eastern Germany after a freak sandstorm caused pile-ups, police said. Strong winds blew sand and earth onto the four-lane A19 autobahn near Rostock in Mecklenburg-Western Pomerania state, severely hindering visibility for motorists and causing accidents in both directions.
Northbound, three lorries and 17 cars slammed into each other and were engulfed in flames, possibly caused by chemicals on one of the trucks catching fire, police said.
A spokesman said the toll could still rise, as rescue workers were still searching for bodies in the smoking, mangled wreckage.
And after Fukushima and Angela Merkel’s knee-jerk reaction in ordering older German nuclear plants to be shut down, one reader commented:
Interesting – more persons died in a crash on a German highway than have been killed by the nuclear emergency in Japan. Need to close the highways, I think.
Image via Wikipedia
SAAB’s production has ground to a halt again and will probably not start again for a week because suppliers are not being paid and they are stopping supplies. But Victor Muller still gets his bonus for following the business plan which suggests that the cash crisis is being engineered.
Over the weekend, Victor Muller was very critical of the suppliers who stopped deliveries when they didn’t get paid and accused them of carrying out negotiations in the media. He denied that SAAB Automobiles had any long standing liquidity crisis and that they were merely renegotiating supplier terms and conditions.
But a continuing shortage of supplies has caused the production line at SAAB to have stopped again and it may stand still till next Tuesday. It seems clear that Victor Muller will drive SAAB to the verge of bankruptcy to ensure that Vladimir Antonov can be seen as a rescuing angel and allowed in as SAAB’s owner. He may even drive it through a bankruptcy. Whether it is Victor Muller just playing his games or whether it is a strategy being directed by Antonov is not clear. But cash flow is the fundamental basis of any business plan of substance and it seems apparent to me that a good part of the cash crunch is being engineered by Muller / Spyker and probably Antonov.
Is cash crunch just a ruse to get SAAB into Russian ownership?
On Tuesday Automaker Saab stopped production at the plant in Trollhättan. Sources said that the stop will be extended until Tuesday next week. Yesterday’s stop is the third in a week, and is caused by the car manufacturer’s problems in paying subcontractors on time.
Saab’s CIO Eric Geers would not confirm that production will be stationary for that long, but said that production has stopped until the material problems are solved. The company is working right now to resolve the funding issue.
“We are working really hard to find a solution and are trying to get started as quickly as possible. At the same time we want to get rid of this jerky production flow, “he says.
……. Saab management’s way of responding to concerns and criticism on this occasion has not been the best.
Meanwhile Svenska Dagbladet reported:
Victor Muller regrets that Saab presented a target for number of vehicles to be produced and distributed. Last year the forecast had to be reduced twice, which increased uncertainties regarding the company’s survival power. “It’s our own fault. We should never have gone out with some predictions. It’s so easy to measure that all else is lost sight of. The fact that we stayed within the business plan is ignored.
Retiring CEO Jan Ake Jonsson, admits that liquidity has become more strained in the second half of the first quarter. “There are a number of different reasons and I can not go into these because a variety of partners are involved”, he said before a large number of journalists who come to Saab’s spring exhibition. Jonsson stated that Saab has been very, very close to the expectations of the business plan. “In relation to the lower sales, we have managed to keep costs low”.
That they stayed within the business plan is the reason that both Muller and Jonsson got bonuses though Saab made a net loss of nearly two billion kronor last year. Victor Muller has no qualms in maintaining his 4.5 million kronor ($0.7 million) in bonus on top of his salary and other benefits. Overall, it means that he got a remuneration in 2010 worth around 14 million kronor ($2.2 million), according to Dagens Industri.
Of course Muller does not explain how they managed to stay within the business plan but ran out of cash. Or perhaps cash flow was not included in his business plan.
While SAAB’s production has ground to a halt as supplies dry up because of non-payment of suppliers dues and SAAB’s owners Spyker Cars sees its share price drop, comes news of further efforts by the Russian financier Vladimir Antonov to gain entry as an owner of SAAB. He has been trying to get in for some time and “money on the table” could be irresistible if Spyker and SAAB are really going through a cash crunch.
Vladimir Antonov
Spyker’s report warned – a little unexpectedly – of a cash crunch last Friday. Could it be that this is an elaborate ruse between Spyker and Antonov? I am probably being a little cynical but with Russian finance I have learnt that nothing is ever as it seems and conspiracy theories are not necessarily as far fetched as they might seem. The Swedish government does not want Antonov to get in as a SAAB owner but Victor Muller and Spyker Cars do.
I suspect that the liquidity crisis at SAAB has been – at least partly – engineered by Spyker and Antonov.
The Russian financier Vladimir Antonov has filed a formal application to Sweden’s National Debt Office to go in as the owner of Saab Automobile. This was confirmed by the Debt Office and Antonov himself for TTELA.
“We can confirm that we received an application from Vladimir Antonov, yesterday (Tuesday) evening, but, because of commercial confidentiality, can not say what it contains, “said Daniel Barr, project manager for Saab at the Debt Office, to TTELA.
Even Vladimir Antonov confirmed briefly that he had submitted an application. Previously, he has declared that he wants to go in with capital of between 440-620 million SEK , so that Saab and its parent company Spyker Cars NV can get a better buffer capital. Such money could be used in times of a liquidity crisis.
The Debt Office will process the application and submit a statement to the Government. The government will then makes a decision on the matter. The Debt Office does not comment on applications received.From the Spyker financial statements presented on Friday, it appears that cash flow reduced faster than expected in late 2010 partly because of lower sales volumes and large investments. At the end of 2010 the company had negative equity and a working capital of 220 million euros, equivalent to almost 2 billion Swedish krona.
Vladimir Antonov and his banking group Convers Group.have submitted the application to the Debt Office. Oleg Sukhorukov, vice president of Convers Group, would not give any additional comments.
Vladimir Aleksandrovich Antonov (born 1975) is a Russian banker, entrepreneur and investor. In 2007 Antonov’s personal wealth was estimated at $300,000,000 which ranks him as number 182 among Russian millionaires.
In February 2011, it was announced that Spyker Cars NV, the Dutch owner of Saab Automobile, agreed to sell its sports-car unit to Vladimir Antonov. Antonov, a former Spyker chairman and shareholder, is expected to pay 15 million euros ($21 million) for the company.
In 2007, Bankas Snoras acquired 29.9% of Dutch luxury automobile manufacturer, Spyker Cars, making Vladimir Antonov the single largest shareholder in the company.
In January 2010, it was reported that General Motors was preparing to sell Saab to Spyker for a nominal fee, and that the Swedish government had agreed to guarantee loans for the purchase from the European Investment Bank (EIB). If the takeover had been successful, the Saab brand and its operations would have been largely unaffected.
Antonov’s interests (29.9% of the shares) in Spyker Cars were said to have delayed the purchase of Saab Automobile in late 2009. An investigation by the Swedish monetary agency Riksgälden and the Swedish security police Säpo had allegedly found connections between the Antonov family and organized crime, as well as involvement in money laundering. Säpo reported their findings to the United States Federal Bureau of Investigation, and shortly afterwards GM stopped further talks about the deal until the Antonov family had sold their shares in Spyker Cars.
In January 2011, it was reported that GM was preparing to reverse its decision not to allow Antonov to hold a financial interest in Spyker and Saab and allow him to invest. Antonov said that he has no “connection to any criminal people” and that he had hired an investigative firm to produce evidence that he has no criminal background.
Victor Muller Spyker cars
In December 2010, it was reported by Swedish financial newspaper, Dagens Industri, that two independent reports, one of which was commissioned by the Swedish government had shown that there was no evidence that Vladimir Antonov is guilty of any of the accusations made against him. Victor Muller, CEO of Spyker Cars, also stated that he believed Vladimir Antonov to be innocent of the accusations. Following this, Antonov acquired the sportcars division of Spyker Cars NV.
Maybe this all just to get Antonov to be a “white knight riding to SAAB’s rescue” but something does not smell right.
When suppliers don’t get paid a vicious circle begins of : lack of cash >> unpaid dues>> lack of some critical supplies>> reduction of production>> stoppage of other supplies>> diminishing of trust>> withdrawal of credit >>leading to a further lack of cash. After years of living from hand-to-mouth but still producing what I consider one of the best cars on the road, SAAB automobile may now be approaching a fateful point in an illustrious history.
There are worrying signs that came out from Saab Automobile on Tuesday night. Saab may have suffered an acute liquidity crisis. Saab production, according to several sources came to a standstill on Tuesday because suppliers were not paid. Even union IF Metall’s Chairman Hakan Skött confirmed that production had stopped. And then came the news at 8pm on Tuesday night, that Saab’s advertising agency Lowe Brindfors had suspended their ongoing engagement due to nonpayment.
In recent weeks, warning bells have been ringing louder and louder. Saab’s new CFO quit before he even had time to start. And one of Saab’s heaviest funders, Pieter Heerema, who had lent 25 million U.S. dollars, recently abandoned Spyker’s board with immediate effect.
And then the CEO Jan Ake Jonsson left, oddly enough just last Friday after Spyker came up with its report – even if is due to stay until May on paper. But the issue of of Saab’s liquidity has become serious just recently. When I asked the chairman Victor Muller last Friday in connection with the report whether Saab has enough capital to pay bills this year, he replied that “probably not”. The report also described that liquidity is lower than expected. But Muller was talking in his characteristically intense way that they will find solutions – including selling their new platform Phoenix to other automakers.
But the signals that came in Tuesday night are very worrying.
Saab could choose to put a lid on it.
It would be of great regret if SAAB Automobiles went bankrupt. But perhaps SAAB have had their day and it is time to move on.
The London Design Museum is putting on a special display to celebrate 50 years of the Jaguar E-type from its launch at the Geneva Motor Show in 1961. In the late 1960’s as an apprentice in England, the E-type represented the stuff of our dreams. But back then when my weekly wage as an engineering apprentice was £3- 10s per week, the £2,000 price tag was as unattainable as a date with Sophia Loren!
In the 1970’s when I could aspire to more, I actually considered the Triumph GT6 – also known as the “poor-man’s E-type” – but instead I settled for a much more sedate Renault -12. And by the time I could consider its price tag the E-type was no longer in production and my tastes had a decided preference for the comfort of a Mercedes.
The Design Museum celebrates 50 years of the iconic Jaguar E-Type with a display in the Design Museum Tank.
Jaguar E-Type series 1, 1961
Originally launched at the Geneva Motor Show in 1961, the E-Type’s caused an instant sensation. With a 3.8 litre XK engine, a top speed of 150 miles per hour and a price of £2000, the E-Type was an accessible dream and signalled the new era of modernity of the 1960s. Between 1961 and 1974 over 70,000 E-Types were produced.
The bullet-like design of the E-Type was the result of the mathematical and engineering talent of Malcolm Sayer and the E-type was the first large-scale production road car to be developed from the study of aerodynamics. The founder of Jaguar, Sir William Lyons combined his flare for style and luxury with his business and marketing skills to ensure the E-Type became the car of celebrities from George Harrison of the Beatles to footballer George Best
The E-Type on display was manufactured in 1961 and has been provided by Classic Motors Cars Limited.
On its release Enzo Ferrari called it “The most beautiful car ever made”.
Jaguar e-Type series one: image Wikipedia
The E-type was 4.4 m long with a 3.8 litre engine while the GT6 had a length of 3.7 m and a 2 litre engine. Technically and in looks the Triumph GT6 never came close to the E-type, but it looked fast. On the few occasions when I drove a friend’s GT6, my main memory is that it had a decided “tail-wag” when cornering.
1973 Triumph GT6: image Wikipedia
Bot nowadays my tastes are much more sedate and the Jaguar E-type remains the dream it always was. So I shall make do with my Mercedes E-class.
Mercedes E-class 2010: image via Flickr
The k2p blog 