Saab Faces Problems Concerning Property Sale
At this point, as the EIB report says, Saab is forced to refinance the sale or replace Antonov within a limited period of time.
This situation represents a direct effect of General Motors' - Saab’s former owner - desire to continue the deal once the Russian banker is removed. A year ago, automaker Spyker purchased the Swedish automaker and according to them, discussions with the EIB still exist as the terms of the deal are not met.
“Saab Automobile is working with all parties involved on a solution to complete the sale of the property and will have further talks with the EIB today,” Spyker said.
As a consequence of lack of funds, Saab’s production since late March has suffered, with just a handful of cars having been built. This situation caused payments delay concerning components suppliers, as the manufacturer still owes around $49 million (EUR33.5 million) to its suppliers. And the bad news does not end here. Unfortunately, the automaker cannot pay this figure from the 2010 $400 million (EUR273.6 million) loan from the EIB, as the loan is considered to be used only for vehicle development and not for operational expenses.
The European Investment Bank (EIB) is preparing to have discussions regarding Saab’s issues with the Swedish government, the country’s debt office, as well as with General Motors.
Spyker is very serious regarding the sell of Saab, as the manufacturer intends to have some negotiations with some Chinese automakers referring to licensing some of its current technologies.
comments written so far
What we're left with here is some chinese whisper from left lane news who isn't necessarily on record of providing the most detailed information regarding the little Swedish firm.
Victor Muller explained the sequence of events himself just last week in New York. One supplier demanded payment or they wouldn't unload and we (saab) called their bluff. The Swedish media got wind of the details and it blew up in our faces. We then had all our suppliers banging on the door demanding their money at which point we had not other alternative but to stop production. We have the money to pay our suppliers but not all at the same time.
The Swedish media have been very critical of SAAB and their news articles have trickled through to the international media. We can couple this with the USA press who for 8 months of 2010 were still reporting that SAAB were in fact put to bed along with Pontiac, Saturn and HUMMER. So much negative press and people wonder why SAAB struggled to reach their target? Please don't tell me that you do not believe the power of the media in influencing peoples views.
The ironic thing is, that the ones who seem to have been hit the hardest out of all this, are the people who started it all; the suppliers. Now they are stating that if SAAB doesn't start production soon they will have to lay workers off.