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.

Monday, April 11, 2011

Saab still a safe company car buy

Last week Swedish newspaper TTELA reported that the company car consultant company Ynnor AB, was going to review how the recent turmoils have affected Saab as a company car. The report was to be about the financial aspects when buying a company car from Saab.

Now the report is ready, and it is a positive read for Saab. The conclusion is that there is no risk in buying a Saab today. According to the report, the dealers guarantee the residual value and Saab will most likely survive the acute liquidity crises the company is facing now:

- We see no current risk in buying a Saab as a company car, says Ronny Svensson, CEO of the company car consultant Ynnor, which is an independent advisor on company cars. As long as the dealers are guaranteeing the residual value, the total cost is not negatively affected. And as the dealers are also responsible for warranty work and spare parts, the risk regarding these aspects is not a concern.

- We think that Saab will weather the current storm, says Ronny Svensson. We estimate the chances of survival to 80% for the coming year.
- But it is clear that Saab needs to broaden its ownership and quickly. We believe that the situation will clear up soon. Saab also needs to get rid of the EIB loans which is a political yoke. Chairman Victor Muller must appoint a new CEO, and not using Saab as cash cow, and the company must communicate better with more credibility, says Ronny Svensson.