Almost two months ago, Saab was able to restart production after Gemini Investment Fund extended a €30m six-month convertible loan to the struggling Swedish automaker. Now, after another shutdown, it seems that Gemini has once again ridden to Saab’s rescue, as the company announces another six-month convertible loan from Gemini.

Swedish Automobile N.V. (SWAN) announces that it entered into a EUR 25 million convertible bridge loan agreement with Gemini Investment Fund Limited (Gemini), thereby securing additional short-term funding.

SWAN entered into a EUR 25 million convertible bridge loan agreement with Gemini with a 6 months maturity. The interest rate of the loan is 10% per annum and the conversion price is EUR 1.38 per share (the volume weighted average price over the past 10 trading days). SWAN may at any time during the loan’s term redeem it without penalty and it intends to do so once the funding from Pang Da and Youngman is received, in which case no dilution as a result of this bridge loan will occur.

Attention Chinese, Swedish and European Investment Bank regulators: you’d better cut through that red tape and approve the Pang Da and Youngman investments post-haste, or Saab will be back in the drink when these short-term loans mature. After all, hasn’t Valdimir Antonov been waiting for approval to buy into Saab since.. oh, 2009?

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With a new Viper being readied for a 2012 auto show debut ahead of a 2013 launch, Automotive News [sub]’s Rick Kranz has discovered something of an issue in the development process: suppliers don’t want in.

Ralph Gilles, who heads Chrysler Group’s design organization and SRT, the automaker’s performance group, says many suppliers said “thanks, but no thanks” when the automaker knocked on their doors.

“It has been tough to get low-volume suppliers,” Gilles says. “We have had a few hiccups here and there as we get suppliers. That type of fringe business has really dwindled. A lot of people are looking for big accounts now, but now that is behind us.”

Kranz blames low volume (2,103 units in its best year, 392 units last year) and supplier consolidation for the “hiccups.” But as it so happens, this has been a recurring problem for the Viper since day one…

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When asked by thenational.ae if he preferred to drive his McLaren F1 or Mclaren-Mercedes SLR to work everyday, the man who designed both legendary hypercars, Gordon Murray demurs:

I wouldn’t say the SLR is quite an everyday car but I certainly like to drive it to work. But for me, despite all those cars and my single-seater Rocket [a car he privately designed], it’s the [eight year-old Smart Roadster] I’m most taken with. For one, it’s a great-looking car. It has a power roof, heated seats and air con, and it all weighs just 830kg. In fact, it’s got all you’d want from a car. It nips around corners and it’s fun to drive.

So, other than proving that Murray has exquisite taste (I’d kill you all for a Brabus Smart Roadster Coupe), what’s the point? That, having been there and done that in the world of high performance, Murray’s taking on a less obviously sexy but ultimately significant project that first occurred to him in a traffic jam back in 1993: the T.25 and T.27 city cars. We’ve written about Murray’s T.25 before, but the real news today is the release of specs for the T.27, an all-electric version of the tiny three-seater. And yes, it weighs 1,500 lbs on the nose (including batteries), and ekes 100 miles of range out of just 12 kWh. That beats the efficiency of competitors like the Smart EV (by 29%), the Mitsubishi iMiEV (by 36%) and MINI E (by 86%). So, how does it do it?

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Saab has reached a deal to sell 50.1% of its real estate holdings to a consortium led by Hemfosa Fastigheter AB, for about $40m, and has also received an order for $18.4m worth of vehicles from an unnamed Chinese firm according to AN [sub], giving the dead-alive Swedish firm the faintest, cruelest glimmer of hope. The real estate deal was for about a third less than the property had previously been valued at, and still needs to be approved by the Swedish Debt Office, the EIB and GM. Meanwhile, the real struggle is ongoing, as a Saab spokesperson tells Reuters that

Today’s news takes us a good way in the right direction, but it is the agreement (with suppliers) that matters and only then will we be able to communicate a date when we can restart production

But suppliers aren’t even the first in line for Saab’s much-needed cash injection: that goes to workers who are promising to take the company into bankruptcy if they aren’t paid soon. These two recent deals should be enough to pay worker salaries through July, but if suppliers aren’t brought back as well to restart production, the bulk sale and an earlier order from PangDa will never be filled. And those suppliers are currently mulling over an offer of ten percent of what they are owed until the Chinese inject more cash later in the year… not the greatest deal ever. Meanwhile, Saab says

There are other initiatives still being pursued. There is not much we can say about that until we have something concrete to communicate

Like what? What could there possibly be to communicate?

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Every June cars.com trolls the protectionist elements of the car guy world by trotting out its “American Made Index,” which has been topped by the Toyota Camry for the third year running. So what’s cars.com’s criteria for the American Made Index? According to a presser

Cars.com’s annual American-Made Index ranks the most-American vehicles based on percentage of their parts that are made domestically, where they are assembled and how many are sold to U.S. buyers.

That last bit goes a long way towards explaining the Camry/Accord dominance: this is not just a measure of assembly and “domestic parts content” (which NHTSA strangely counts as parts made in the US or Canada), but popularity with Americans as well. If, on the other hand, you just look at the raw 2011 “domestic” parts content percentages… well, it tells a slightly different story.

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Clear your mind, look deep into the results of the 2011 JD Power Initial Quality Survey, and what will you find? Based on my limited understanding of the human mind, I’d guess “something that helps prop up your established perspective on the world of cars.” But hey, feel free to prove me wrong. Meanwhile, lest we take any of this too seriously, let’s remember the wise words of Michael Karesh, who noted on last year’s results that

J.D. Power continues to assert that a low number of problems during the first 90 days of ownership should allay any concerns a car buyer might have about a car’s quality. But of course car buyers are most concerned about how a car will hold up in the long run.

Initial quality sometimes correlates with long-term durability, but there’s only a partial connection between the two. Initial quality can result from solid engineering, which will also benefit long-term durability. But strong initial quality can also follow from thorough inspections at the plant or dealer. Such inspections can catch and fix problems that happen to occur before delivery, but aren’t likely to reduce problems down the road.

Karesh’s seminal IQS critique can be found here.

[UPDATE: Automotive News [sub] reports that Linc workers voted “overwhelmingly” to authorize a strike, noting

We’ve been watching the drama at GM’s Lake Orion plant unfold for some time now, as an “innovative labor practices” agreement between the UAW, GM and the government has already drawn UAW protests and NLRB complaints, as well as increased backlash against the union’s two-tier wage structure. Thus far GM had been able to prevent Tier One workers from being forced into the second tier, by shuffling them off to the Flint HD pickup plant. But with GM’s truck inventory soaring to “Old GM” levels, Flint is being idled, and those “Tier One Gypsies” are once again facing the choice between moving to some other plant or accepting a 50% paycut to return to Orion. And now, another labor issue is raising its ugly head, as Crainsdetroit reports that

About 125 workers for a critical supplier [Linc Logistics] inside the General Motors Co. Orion Assembly Plant are taking a strike authorization vote today as a means of accelerating contract talks.

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Mazda has confirmed [to Reuters via Automotive News [sub]] what has been rumored for a while (especially in the Mexican media): open a new plant in Guanajuato, Mexico, near VW and GM’s Silao facilities. Production starts this fall and the line starts rolling in 2013, according to “people familiar with the matter.” In the meantime, Mazda6 production at the Flat Rock, MI joint venture plant continues until mid-2012, at which point Mazda will make a decision that it’s still “studying,” but it won’t be building the Mazda6. Interestingly, Mazda’s new Mexican plant is only being built for “at least” 50k units of

compact cars, initially for sale in Mexico and South America, and eventually export to North America.

Could the next-generation of Mazda midsizers be hecho en Mexico as well? It’s possible, but we won’t know until Mazda announces more details about the new factory. Meanwhile, nobody’s expecting Mazda to hang around Flat Rock… least of all Ford.

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Bloomberg [via Automotive News [sub]] reports:

“We’ve now been able to secure production capacity to safely say that we will surpass 600,000 units,” Mike O’Brien, Hyundai’s vice president for U.S. corporate and product planning, told reporters here Tuesday.

The South Korea-based company said in January it didn’t have enough production capacity to meet that level of U.S. sales.

Since then, Hyundai has raised output at its Montgomery, Ala., plant that makes Sonatas and Elantras, and it will also have a larger supply of the new Accent subcompact from South Korea than initially planned

OK, so it’s a somewhat facetious headline: as an auto manufacturer, Saab either builds and sells cars or it disappears. But in the aftermath of Saab CEO Victor Muller’s pledge that “We will definitely ensure that this [production stoppage] will not happen again,” Saab’s most recent shutdown sent shockwaves of concern through the Saab community. After all, Saab’s official line is that “we knew this would happen,” a position that’s more than a little at odds with Muller’s now-broken promise. And though the just-signed Youngman deal could mean more cash with which to get production at Trolhättan back up and running, there’s a bigger question that remains unanswered: why restart production at all?

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Saab was supposed to reach 100% production speed sometime in the middle of last week after enduring a nearly two-month shutdown. But now it seems that more “material shortages” have brought the Trollhättan plant to its knees again, as Steve Wade of inside.saab.com reports

Yesterday, production at Saab Automobile stopped at lunchtime due to material shortages. We have now stopped again today for the same reasons…

The liquidity situation is still tense, and depends on several different financing solutions falling into place, long-term as well as short-term. Some milestones have been achieved, such as the letter of intent signed with Pang Da and the additional funding that their order of Saab cars means. An example of things that still await a solution is the sale and leaseback of Saab AB Property, which we have addressed in previous communications. Representatives from Spyker and Saab will continue to work with these solutions, while the dialogue between Saab and suppliers progresses.

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I designed TrueDelta’s Car Reliability Survey to provide information an average of ten months ahead of the established annual surveys. Early last December we shared with TTAC readers that ”Early data on the Ford Fiesta is not good.” Then, in early March, we stated about the 2011 Fiesta and the 2010 Taurus that ”Ford does not appear to have tested either model thoroughly enough.” The late February release on the TrueDelta site went a step farther, asking, “Is Ford slipping?” The answer last week from Ford: “Yes, but we’re going to fix it.”

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At the end of May, GM had no fewer than 288,000 pickup trucks sitting on its dealers’ lots (up from 275k in April). With gas prices on a short-term dip, but in the midst of a long-term increase, and with the season of traditional gas price spikes upon us, that could give The General cause for concern. After all, even a short-term spike in gas prices could cause a sharp falloff in truck sales, stranding huge numbers of trucks on dealer lots. But, GM North American boss Mark Reuss tells Bloomberg,

We’re not going to run big incentives to clear inventory. We’ll adjust inventory on a production basis.

That’s good news for GM’s financial position, and a promising sign of a new spirit of responsible pricing. But in an industry as complex as this, even good decisions could have troubling consequences. If GM “adjusts inventory on a production basis,” the “Tier One Gypsies” who fled Orion Township to avoid a 50% pay cut could find their temporary refuge at Flint Truck drying up, as HD pickups are likely the first to undergo “adjustments on a production basis.” And though that’s not explicitly GM’s problem, it could ratchet up the pressure to roll back the two-tier system in the upcoming negotiation session, and generally fire up the UAW’s dissidents and hard-liners. Meanwhile, with CAFE and gas prices converging on Detroit’s BOF bread-and-butter, we’ll be watching for signs of trouble as GM adjusts to the larger issue of likely long-term declines in truck demand.

Rumors began surfacing about a month ago that Mazda was eying a complete pullout from US production, as it endures weak sales of its last American-built product, the Mazda6. Mazda had reportedly planned for 100k units of Mazda6 production at its Flat Rock plant, which it shares with Ford, before the economic crisis sent the US market tumbling. And with only a little more than 36k Mazda6s built alongside the Ford Mustang at Flat Rock last year, Mazda has little reason to maintain its joint venture, and with it, its US manufacturing presence. Now, the Nikkei [via the DetN] reports that Mazda’s pullout is more likely than ever, citing an unnamed Mazda source as saying it hoped to sell its 50% stake in the Flat Rock AutoAlliance plant to Ford as it restructures its global operations.

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With new compact and subcompact models from Ford and GM enjoying respectable sales, the mainstream media has been indulging in some “feel-good” headlines, like the New York Times’s Detroit’s Rebound Is Built on Smaller Cars, or CBS’s more equivocal Can small cars rebound U.S. auto industry? It’s an understandable instinct, as the media has long battered Detroit’s inability to build competitive compact and subcompact cars, and in the post-bailout atmosphere of redemption, these headlines definitely help reassure Americans about the value of their “investment.” Unfortunately (if unsurprisingly), however, these pieces gloss over the full truth of the situation. Yes, Ford and GM are enjoying improved sales success with small cars. The “U.S. auto industry,” on the other hand, isn’t actually getting all that much out of the situation, beyond some fluffily positive press. Here’s why:

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