IMPORTANT NEWS: National Electric Vehicle Sweden has agreed to buy the assets of Saab Automobile and the sale is expected to be finalized during the summer.

Thursday, April 7, 2011

Money doesn't talk it...

Updated with an article from Dagens Nyheter.

I am a big Bob Dylan fan. From Bob Dylan I have learned that "money doesn't talk, it swears". But now I have also learned something new. From Vladimir Antonov on Twitter I now know that "money doesn't talk, it screams". But in the end I hope that it doesn't scream or swear, I just hope it talks, and that it talks about a bright future.

Here is what TTELA web edition writes today about the work to strengthen the capital:

Work to strengthen the finances is in progress

Efforts to get Antonov in as an owner of Saab is progressing. But at the same time Saab is working hard to bring in capital from external sources, such as funds. And a clear trail leads to China.
Efforts to get Vladimir Antonov in as an owner continues.
- Vladimir Antonov can invest half a billion Swedish kronor in the company, says Eric Carlströms, Antonov spokesman in Sweden.
But it can also be necessary to access capital from the US fund, GEM, which Saab's parent company Spyker Cars NV made a credit facility agreement with last year. The fund can make a capital injection of over a billion SEK in Saab.
And a clear track when it comes to getting more capital into the company is leading to China, as far as TTELA can tell.
TTELA also writes that more on the China lead is to be found in today's paper edition. I wonder what that China lead is. Technology sharing? More old or soon to be old tools for sale?

But all in all, nothing new since yesterday when Dagens Industri also had an article about Saab's work to raise capital.

Update: Dagens Nyheter web editon has an article about Saab's hunt for capital:

Saab's desperate hunt for money
Saab's management is desperately looking for capital. At the same time more and more suppliers demand new contracts with shorter periods of credit - and preferably payment at delivery. On Wednesday the factory stopped again and is now inactive until further notice.
- The Purchasing Department has an ongoing dialogue with suppliers, and company management are working hard to strengthen our financial position.
This is how Gunilla Gustavs, spokesman for Saab, summarize the uncertain situation. On Wednesday, the company management was forced to pull the brake. Amongst other things, they have stopped several large marketing projects to save money.
After several stops in the production in the last week, the production line in Trollhättan has now been shut down until further notice and the employees have the rest of the week off.
The reason for this pause is that important supplies of material do not arrive from the subcontractors. Cars that lack both coolers and instrument panels have been mentioned.
Saab's press office would neither confirm nor deny the information that comes from the suppliers and no one knows with certainty when the production can get going again.
- The company's efforts are now on finding a more permanent solution with the suppliers, says Gunilla Gustavs to DN Economics.
- The constant disruptions in supplies are related to the company's limited liquidity.
The halt in production may also have direct implications for other companies. Among others, Lear Corporation in Trollhättan, a manufacturer of car seats for Saab,  had to close its production on Wednesday.
Several other suppliers that DN Economics has spoken to, says, however, that their patience is about to run out.
- I have accounts receivable on Saab that amounts to SEK 500,000. On the big picture perhaps it is not much money for Saab, but for me it's definitely a lot, says "Marko", one of the subcontractors who contacted DN Economics.
Many concerned believe that it is time for Saab to tell it like it is. Including Paul Åkerlund, former union chief at Saab, and today Mayor of Trollhättan.
- Their communications strategy has gone very wrong this time. It does not surprise me that the suppliers make pretty tough demands right now in this uncertain situation, says Paul Åkerlund.
Saab management's hope of a quick cash-injection by the Russian financier Vladimir Antonov also drags on. The National Debt Office, which received Antonov’s application last week, are working on the issue.
Daniel Barr, head of the bank support at the National Debt Office, gives the same answer as before, "it will take weeks rather than days".
- In any case, no decision from us this week, he clarifies.