Saab is now two weeks into the reconstruction. When a company is in reconstruction, one of the conditions is that all purchases must be paid in cash. For Saab this means that the EUR 70 million bridge loan from Youngman is required in order to survive the reconstruction period. This loan was supposed to be received by Saab September 25. But so far no money has reached Saab.
"The money has not come in yet. We originally thought it would take about two weeks. The process is ongoing, and we will give information as soon as we have the money," Saab spokesman Eric Geers told Reuters.
According to Geers, Saab still has enough money to get by, but he would not say for how long. Saab is of course eager to get the money from Youngman.
"It is hard to say exactly when this process will be finished. But it will be soon," Geers said.
A blog fueled by enthusiasm about Saab, the greatest car company between the North and the South Pole. And their cars, which probably is the only cars that would start on a cold and crispy South Pole morning.
Wednesday, October 5, 2011
Sluggish Youngman stress Saab
By October 14 China's National Development and Reform Commission (NDRC) is supposed to decide whether to approve Chinese companies Youngman and Pang Da's plans to become part owners of Saab's parent company Swedish Automobile. But also the Swedish Government with its National Debt Office, the European Investment Bank and General Motors need to approve any major ownership changes in Saab. Now Swedish newspaper Dagens Industri reports that Saab is having a hard time obtaining all needed information from Chinese Youngman.
"Things are progressing slowly, especially for the family-owned Youngman which is not used to disclosing sensitive information about financial figures such as sales and profits," says Anna Petre, head of public affairs at Saab.
Anna Petre is responsible for obtaining all the information Sweden's National Debt Office needs from the Chinese companies to make its ownership review. Despite many contacts at Youngman's financial department, Petre has a very limited knowledge of the company.
By the end of this week, the information must have reached the National Debt Office to enable it to make a decision before October 14, when the decision from the NDRC is expected.
"I asked to get the audited financial statements from them. And they asked what it meant that it would be audited. They work by other terms and in a different way than we do," Petre tells DI.
There is a great difference between Youngman and Pang Da. Pang Da is listed on the Shanghai Stock Exchange and used to sharing financial information. On Tuesday the company gave its details to Anna Petre who collects it and sends it to the National Debt Office.
"Things are progressing slowly, especially for the family-owned Youngman which is not used to disclosing sensitive information about financial figures such as sales and profits," says Anna Petre, head of public affairs at Saab.
Anna Petre is responsible for obtaining all the information Sweden's National Debt Office needs from the Chinese companies to make its ownership review. Despite many contacts at Youngman's financial department, Petre has a very limited knowledge of the company.
By the end of this week, the information must have reached the National Debt Office to enable it to make a decision before October 14, when the decision from the NDRC is expected.
"I asked to get the audited financial statements from them. And they asked what it meant that it would be audited. They work by other terms and in a different way than we do," Petre tells DI.
There is a great difference between Youngman and Pang Da. Pang Da is listed on the Shanghai Stock Exchange and used to sharing financial information. On Tuesday the company gave its details to Anna Petre who collects it and sends it to the National Debt Office.
Tuesday, October 4, 2011
BorgWarner to showcase Saab 9-3 eAWD
According to AutoGuide.com BorgWarner will this week at the SEA All-Wheel Drive Symposium in Bloomfield Hills, Michigan showcase its next generation of AWD systems including a new hybrid-electric setup. The system, known as eAWD, will be fitted to a Saab 9-3 and BorgWarner claims it will offer, "superior stability and traction with lower emissions and up to 20 percent better fuel economy."
As far as I can understand, this must be the Haldex developed electric four wheel drive system seeing that the Haldex traction division earlier this year was bought by BorgWarner.
It is quite ironic that BorgWarner and Haldex will showcase their system on a Saab 9-3 when Saab has developed its own hybrid electric cross wheel drive system (eXWD) and started the company e-AAM Driveline Systems with BorgWarner's competitor American Axle & Manufacturing. Saab's e-AAM system will also be sold to other manufacturers and therefore be a direct competitor to the Haldex system. The marketing director of e-AAM last month said that e-AAM has already sold the system to a handful of customers.
It will be very interesting to see comparison tests on these two systems. I guess we can look forward to that next year or in 2013.
As far as I can understand, this must be the Haldex developed electric four wheel drive system seeing that the Haldex traction division earlier this year was bought by BorgWarner.
It is quite ironic that BorgWarner and Haldex will showcase their system on a Saab 9-3 when Saab has developed its own hybrid electric cross wheel drive system (eXWD) and started the company e-AAM Driveline Systems with BorgWarner's competitor American Axle & Manufacturing. Saab's e-AAM system will also be sold to other manufacturers and therefore be a direct competitor to the Haldex system. The marketing director of e-AAM last month said that e-AAM has already sold the system to a handful of customers.
It will be very interesting to see comparison tests on these two systems. I guess we can look forward to that next year or in 2013.
All eyes on the NDRC and October 14
Saab is now almost two weeks into the reconstruction. By now we can assume that the project Cheetah (cost cutting project) is well under way and that Saab is hopefully making agreements with suppliers about payments and restart of production. I have however not seen any confirmation that the EUR 70 million loan promised by Youngman has been received yet. This money is needed to secure that the employees are paid their wages in full in October and also to pay suppliers.
Regaining the suppliers' confidence is now very important. On October 31 Saab will meet its creditors as part of the reconstruction. At this meeting the creditors and the reconstruction administrator will decide whether there is reason to continue the reconstruction or not. If Saab at this meeting can present a convincing business plan, hopefully with a lower cost base than today, and if Saab has been able to come to terms with most suppliers by the meeting, then the creditors will hopefully give the company the green light to continue the reconstruction.
One supplier Saab needs to make an agreement with is Japanese supplier Takata-Petri. This supplier has filed for bankruptcy in Saab due to unpaid bills. Also the labor unions at Saab filed for bankruptcy on behalf of their members when they were not paid their wages, but now all unions have withdrawn their filings seeing that the wages have been paid.
For the creditors and the reconstruction administrator to give the green light to continue the reconstruction, Saab probably also needs to present some good news from China. News that the equity investments from Chinese Youngman and Pang Da will be approved. When Saab appealed to the Court og Appeal asking to be granted a reconstruction, the company handed in a document with the following time table for the approval:
In other words, the final approval should be secured November 8. But the government agency that everybody expect will have the final say, the National Development and Reform Commission (NDRC), will according to the plan have made its decision by October 14. That is Friday next week and more than two weeks before the meeting with the creditors. This yes is critical for Saab.
If the NDRC says yes and the Chinese companies Youngman and Pang Da becomes part owners of Saab, the board will see some changes. Swedish Automobile has called an extraordinary general meeting November 11. When the changes to the board has been executed, both Youngman and Pang Da will get two members of the board.
We can also expect to see some changes to the management at Saab. Victor Muller will step aside as CEO and one candidate to the position is Martin Larsson. He is presently Executive Director New Business Development at Saab and has had a very important role in the negotiations with the Chinese companies. According to a well placed source of the Swedish news agency TT, "The Chinese love him".
But for now all eyes are on the NDRC and October 14.
Regaining the suppliers' confidence is now very important. On October 31 Saab will meet its creditors as part of the reconstruction. At this meeting the creditors and the reconstruction administrator will decide whether there is reason to continue the reconstruction or not. If Saab at this meeting can present a convincing business plan, hopefully with a lower cost base than today, and if Saab has been able to come to terms with most suppliers by the meeting, then the creditors will hopefully give the company the green light to continue the reconstruction.
One supplier Saab needs to make an agreement with is Japanese supplier Takata-Petri. This supplier has filed for bankruptcy in Saab due to unpaid bills. Also the labor unions at Saab filed for bankruptcy on behalf of their members when they were not paid their wages, but now all unions have withdrawn their filings seeing that the wages have been paid.
For the creditors and the reconstruction administrator to give the green light to continue the reconstruction, Saab probably also needs to present some good news from China. News that the equity investments from Chinese Youngman and Pang Da will be approved. When Saab appealed to the Court og Appeal asking to be granted a reconstruction, the company handed in a document with the following time table for the approval:
In other words, the final approval should be secured November 8. But the government agency that everybody expect will have the final say, the National Development and Reform Commission (NDRC), will according to the plan have made its decision by October 14. That is Friday next week and more than two weeks before the meeting with the creditors. This yes is critical for Saab.
If the NDRC says yes and the Chinese companies Youngman and Pang Da becomes part owners of Saab, the board will see some changes. Swedish Automobile has called an extraordinary general meeting November 11. When the changes to the board has been executed, both Youngman and Pang Da will get two members of the board.
We can also expect to see some changes to the management at Saab. Victor Muller will step aside as CEO and one candidate to the position is Martin Larsson. He is presently Executive Director New Business Development at Saab and has had a very important role in the negotiations with the Chinese companies. According to a well placed source of the Swedish news agency TT, "The Chinese love him".
But for now all eyes are on the NDRC and October 14.
Monday, October 3, 2011
Saab sales in September 2011
Correction misprint in the USA paragraph from 1,127 in August 2011 to 1,127 in September 2010
Sweden
According to Bil Sweden, there were 87 new Saab cars registered in Sweden i September, compared to 1,022 cars in September of last year. So far this year 3,387 new Saabs have been registered in Sweden, compared to 5,566 the first nine months last year.
USA
According to Automotive News, Saab sold 429 new cars in the USA in September. The comparable figure for September 2010 was 1,127 cars. In other words a decrease of 62 percent. But still not too bad given the circumstances. So far this year 4,647 Saab cars have been sold in the USA compared to 2,626 the first nine months of last year.
UK
SMMT reports that there were 272 new Saabs registered in the UK in September, compared to 1,212 in September last year. So far this year 4,046 new Saabs have been registered in the UK, compared to 4,177 in the same period last year.
Norway
According to Opplysningsrådet for veitrafikken AS, there were 10 new Saab's registered in Norway in September, the same number as in August. In September of last year 23 new Saabs were registered. So far this year 292 new Saabs have been registered, compared to 197 from January to September last year.
Sweden
According to Bil Sweden, there were 87 new Saab cars registered in Sweden i September, compared to 1,022 cars in September of last year. So far this year 3,387 new Saabs have been registered in Sweden, compared to 5,566 the first nine months last year.
USA
According to Automotive News, Saab sold 429 new cars in the USA in September. The comparable figure for September 2010 was 1,127 cars. In other words a decrease of 62 percent. But still not too bad given the circumstances. So far this year 4,647 Saab cars have been sold in the USA compared to 2,626 the first nine months of last year.
UK
SMMT reports that there were 272 new Saabs registered in the UK in September, compared to 1,212 in September last year. So far this year 4,046 new Saabs have been registered in the UK, compared to 4,177 in the same period last year.
Norway
According to Opplysningsrådet for veitrafikken AS, there were 10 new Saab's registered in Norway in September, the same number as in August. In September of last year 23 new Saabs were registered. So far this year 292 new Saabs have been registered, compared to 197 from January to September last year.
Ireland
According to Motorstats, 2 new Saab were registered in Ireland in September, compared to 10 in September of last year. So far this year 137 new Saab's have been registered in Ireland, compared to 69 the first nine months of last year.
For more Saab sales data, please check out Stefan's overview.
Sunday, October 2, 2011
12 month celebration
In September this blog celebrated one year of existence. The first six months the blog was strictly about owning a new Saab 9-5. Then in March of this year I had more or less run out of things to write about the 9-5 and at the same time I wanted to write about Saab in general. When Swade announced that he would stop writing SaabsUnited it made my decision easy and this blog changed name from "Life with the new Saab 9-5" to "Life with Saab".
Writing this blog for the past 12 months has been a lot of fun. It has seldom felt like hard work or a chore. This post is entry number 583. I have no idea how many words I have written, but it must be in the thousands.
The most popular posts have been:
The blog has attracted visitors from 110 different countries. The top 10 countries from which my readers come visiting are the following:
I am proud to say that many a time this blog has been the first English speaking blog/news provider to break big news. And a few times this blog was actually even ahead of the Swedish news providers too.
The most common search phrases that have directed visitors from search engines to my blog are:
But all this would of course be no fun without knowing that you, my readers, are out there. So a big thank you to all of you!
Writing this blog for the past 12 months has been a lot of fun. It has seldom felt like hard work or a chore. This post is entry number 583. I have no idea how many words I have written, but it must be in the thousands.
The most popular posts have been:
- Night panel
- The Saab 9-5 colors
- My owner's review of the new Saab 9-5
- Future Saab cars - Phoenix architecture
- Winter review of the Saab 9-5 Sedan
- The development of the new Saab 9-5
- A recap of the upcoming Saab 9-3 replacement
The blog has attracted visitors from 110 different countries. The top 10 countries from which my readers come visiting are the following:
I am proud to say that many a time this blog has been the first English speaking blog/news provider to break big news. And a few times this blog was actually even ahead of the Swedish news providers too.
The most common search phrases that have directed visitors from search engines to my blog are:
- "life with saab"
- "saab news"
- "saab"
- "latest saab news"
But all this would of course be no fun without knowing that you, my readers, are out there. So a big thank you to all of you!
Saturday, October 1, 2011
Swedish Automobile preparing for Chinese owners
Corrected the sentence about the investment amount EUR 245 million
Saab's parent company, Swedish Automobile, has called an extraordinary general meeting 11 November. The object of the meeting is to determine how many shares the two Chinese soon to be owners Pang Da and Youngman are to buy and to which share price. The investment amount of EUR 245 million is not an issue. The meeting will also vote on making changes to the board.
Youngman has agreed to take a 29.9 per cent stake in the company and Pang Da a 24 per cent stake. These investments are still subject to an approval from Chinese authorities. An approval which is expected to be granted in the next 4-5 weeks.
Swedish Automobile will go from a two-tier board (management board and supervisory board) to a one-tier board at the general meeting. When the Chinese have made the investments, the following board is proposed:
Non-exclusive members:
Exclusive members:
Biography of the proposed board members (documents published by Swedish Automobile):
Bengt Hamsten (65) is professor in Mechanical Engineering at Chongqing University in China since 2007. He is widely experienced in the fields of automotive vehicle technology, product development processes and innovation and technology management.
In his former position, Mr. Hamsten was CEO of the MAN Truck and Bus division in China, and member of the board of directors of MAN Nutzfahrzeuge AG in Germany. This company, part of the MAN Group, produces and sells more than 70,000 heavy trucks and buses per year with a turnaround of EUR 8 billion. He also was vice-chairman of the board of directors of Lion’s Bus Co. Ltd. in Zhengzhou. Mr. Hamsten was responsible for a restructuring of the commercial vehicle business in China.
Mr. Hamsten was born and educated in Sweden; he holds a master degree in mechanical engineering form Chalmers University of Technology in Gothenburg (1969). Having worked at the Volvo Group in Sweden from 1971-1990, he joined the Daimler Group in Germany. From 1990-2001, Mr. Hamsten held the position of Executive Managing Director and was responsible for engineering, research & development at EvoBus GmbH, which company is part of the Daimler Group. He has 15 years experience in the car business.
Martin Larsson, (42), is Director Business Development of Saab Automobile AB (“Saab Automobile”) in Sweden.
Mr. Larsson started to work for Saab Automobile in 2003 as project leader cost
reduction. After having worked at the Finance Department in 2005 he joined the Purchase Department.
Before his employment at Saab Automobile, Mr. Larsson worked for Suzuki Hamamatsu in Japan and for Adam Opel AG in Germany. Mr. Larsson has a science Masters degree in mechanics from the Royal Institute of Technology in Stockholm, Sweden (1994) and is a major in economics at the University of Stockholm (1993).
Mr. Qingnian Pang (53) was chairman and head and secretary of CCP of Youngman Automobile Group Co since Youngman Automobile Group Co. was founded.
Mr. Pang was honored as National Excellent entrepreneur in towns of China and
National vice president of enterprise in towns of China in 1993, as National Working Model in Agriculture in 1994, as National Innovation Master in 2004, as China Operation and Management Master in 2005, as CCTV China Economic Men of the year 2006 top 50 and Zhejiang Business Men of the year 2006 top 10 and Successful Independently Innovative Entrepreneur in 2006. In 2007, Pang Qingnian actively responded the Party's call of building an "resources saving and environmentally friendly" society; studied Ministry of Communications' Energy Saving & Emission Reduction subject; took Deputy Head of Transport Equipment and Safety & Fuel Saving Committee of Road Transport Association, and was delegate of the 12th Zhejiang Party Congress Representative of the 7th Zhejiang National Congress. He was Awarded the honorary title of Zhejiang Economic in 2008, was elected as Professional Committee of China Energy Conservation Association on July 20th 2009, and was elected as civilian battalion enterprise development association fourth
session of council vice president on November 30th 2009. During November, 2009 to October, 2011, he was hired as a part-time professor by Zhejiang Normal University's Institute. He was Awarded as “Zhejiang NEW”By the Zhejiang Provincial Administration for Industry and commerce, Zhejiang province private Enterprise Association in 2009.
During November 11, 2009 to 15, 2009, he attended Singapore APEC CEO Summit (APEC). He was selected as Deputy director of the professional committee of China's Ministry of transport transportation energy saving energy saving association on March 30th 2010 and was selected as “Excellent Chinese private enterprises new" in 2010.
Mr. Qinghua Pang (56), is chairman and general manager of Pang Da Automobile Trade Co., Ltd, which had its IPO at the Shanghai Stock Exchange on April 28, 2011.
Mr. Pang graduated from the Chinese Food University majoring in economic
management in 1989 and Fudan University with an EMBA of Automobile Marketing in 2004.
Having worked for 20 years at various companies in the city of Luanxian, he held several management positions Tangshan Jidong Electromechanical Equipment Company from 1992 until 1995. From August 1995 to March 1997, he combined being vice-general manager in Yuanda Development Company with the position of general manager in Yuanda International Trade Company. From 1999 to March 2008, he worked for Jidong Trade Company as president and general manager; he was also secretary of the Party Committee.
Presently, Mr. Pang is the chairman and general manager of Pangda Group, chairman of Jidong Trade Company, executive director of Zhongji Leye(Beijing) Real Estate Development Company and vice-chairman of China Automobile Dealers Association.
Mr. Sujia Cai, (53), joined Pang Da Automobile Trading Co., Ltd. In May 2011. As Deputy General Manager he is responsible for the Saab brand cooperation between China and Sweden within the Pang Da group. This includes the strategic planning for the Saab brand in China in the fields of marketing, import, product marketing, car import, product improvements in China, establishment of market system and organization operations.
Mr. Cai is also committee member of the Institute of the Chinese marketing expert committee.
In his former position, he was deputy general manager of China FAW Group Corporation; deputy General manager of Beijing Hyundai Motor Company, responsible for marketing and brand strategy; established the second largest sales joint venture for Korea Hyundai in China—Hyundai TOP-Selection U-CAR company. Mr. Cai has over 30 years experience in the automobile business.
Mr. Cai has an MBA in economics.
Saab's parent company, Swedish Automobile, has called an extraordinary general meeting 11 November. The object of the meeting is to determine how many shares the two Chinese soon to be owners Pang Da and Youngman are to buy and to which share price. The investment amount of EUR 245 million is not an issue. The meeting will also vote on making changes to the board.
Youngman has agreed to take a 29.9 per cent stake in the company and Pang Da a 24 per cent stake. These investments are still subject to an approval from Chinese authorities. An approval which is expected to be granted in the next 4-5 weeks.
Swedish Automobile will go from a two-tier board (management board and supervisory board) to a one-tier board at the general meeting. When the Chinese have made the investments, the following board is proposed:
Non-exclusive members:
- Mr. V.R Muller (Chairman)
- Two independent members
- Mr. Qingha Pang (Pang Da)
- Mr. S. Cai (Pang Da)
- Mr. Qingian Pang (Youngman)
- Mr. B. Hamsten (Youngman)
Exclusive members:
- Mr. M. Larsson
- Mr. R. Schuijt
Biography of the proposed board members (documents published by Swedish Automobile):
Bengt Hamsten (65) is professor in Mechanical Engineering at Chongqing University in China since 2007. He is widely experienced in the fields of automotive vehicle technology, product development processes and innovation and technology management.
In his former position, Mr. Hamsten was CEO of the MAN Truck and Bus division in China, and member of the board of directors of MAN Nutzfahrzeuge AG in Germany. This company, part of the MAN Group, produces and sells more than 70,000 heavy trucks and buses per year with a turnaround of EUR 8 billion. He also was vice-chairman of the board of directors of Lion’s Bus Co. Ltd. in Zhengzhou. Mr. Hamsten was responsible for a restructuring of the commercial vehicle business in China.
Mr. Hamsten was born and educated in Sweden; he holds a master degree in mechanical engineering form Chalmers University of Technology in Gothenburg (1969). Having worked at the Volvo Group in Sweden from 1971-1990, he joined the Daimler Group in Germany. From 1990-2001, Mr. Hamsten held the position of Executive Managing Director and was responsible for engineering, research & development at EvoBus GmbH, which company is part of the Daimler Group. He has 15 years experience in the car business.
Martin Larsson, (42), is Director Business Development of Saab Automobile AB (“Saab Automobile”) in Sweden.
Mr. Larsson started to work for Saab Automobile in 2003 as project leader cost
reduction. After having worked at the Finance Department in 2005 he joined the Purchase Department.
Before his employment at Saab Automobile, Mr. Larsson worked for Suzuki Hamamatsu in Japan and for Adam Opel AG in Germany. Mr. Larsson has a science Masters degree in mechanics from the Royal Institute of Technology in Stockholm, Sweden (1994) and is a major in economics at the University of Stockholm (1993).
Mr. Qingnian Pang (53) was chairman and head and secretary of CCP of Youngman Automobile Group Co since Youngman Automobile Group Co. was founded.
Mr. Pang was honored as National Excellent entrepreneur in towns of China and
National vice president of enterprise in towns of China in 1993, as National Working Model in Agriculture in 1994, as National Innovation Master in 2004, as China Operation and Management Master in 2005, as CCTV China Economic Men of the year 2006 top 50 and Zhejiang Business Men of the year 2006 top 10 and Successful Independently Innovative Entrepreneur in 2006. In 2007, Pang Qingnian actively responded the Party's call of building an "resources saving and environmentally friendly" society; studied Ministry of Communications' Energy Saving & Emission Reduction subject; took Deputy Head of Transport Equipment and Safety & Fuel Saving Committee of Road Transport Association, and was delegate of the 12th Zhejiang Party Congress Representative of the 7th Zhejiang National Congress. He was Awarded the honorary title of Zhejiang Economic in 2008, was elected as Professional Committee of China Energy Conservation Association on July 20th 2009, and was elected as civilian battalion enterprise development association fourth
session of council vice president on November 30th 2009. During November, 2009 to October, 2011, he was hired as a part-time professor by Zhejiang Normal University's Institute. He was Awarded as “Zhejiang NEW”By the Zhejiang Provincial Administration for Industry and commerce, Zhejiang province private Enterprise Association in 2009.
During November 11, 2009 to 15, 2009, he attended Singapore APEC CEO Summit (APEC). He was selected as Deputy director of the professional committee of China's Ministry of transport transportation energy saving energy saving association on March 30th 2010 and was selected as “Excellent Chinese private enterprises new" in 2010.
Mr. Qinghua Pang (56), is chairman and general manager of Pang Da Automobile Trade Co., Ltd, which had its IPO at the Shanghai Stock Exchange on April 28, 2011.
Mr. Pang graduated from the Chinese Food University majoring in economic
management in 1989 and Fudan University with an EMBA of Automobile Marketing in 2004.
Having worked for 20 years at various companies in the city of Luanxian, he held several management positions Tangshan Jidong Electromechanical Equipment Company from 1992 until 1995. From August 1995 to March 1997, he combined being vice-general manager in Yuanda Development Company with the position of general manager in Yuanda International Trade Company. From 1999 to March 2008, he worked for Jidong Trade Company as president and general manager; he was also secretary of the Party Committee.
Presently, Mr. Pang is the chairman and general manager of Pangda Group, chairman of Jidong Trade Company, executive director of Zhongji Leye(Beijing) Real Estate Development Company and vice-chairman of China Automobile Dealers Association.
Mr. Sujia Cai, (53), joined Pang Da Automobile Trading Co., Ltd. In May 2011. As Deputy General Manager he is responsible for the Saab brand cooperation between China and Sweden within the Pang Da group. This includes the strategic planning for the Saab brand in China in the fields of marketing, import, product marketing, car import, product improvements in China, establishment of market system and organization operations.
Mr. Cai is also committee member of the Institute of the Chinese marketing expert committee.
In his former position, he was deputy general manager of China FAW Group Corporation; deputy General manager of Beijing Hyundai Motor Company, responsible for marketing and brand strategy; established the second largest sales joint venture for Korea Hyundai in China—Hyundai TOP-Selection U-CAR company. Mr. Cai has over 30 years experience in the automobile business.
Mr. Cai has an MBA in economics.
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