SvD.se reports that would-be Saab rescuer Vladimir Antonov is considering legal action against the European Investment Bank and the Swedish Government, for keeping him out of an ownership stake at the failing Swedish automaker. Says Antonov

I have therefore decided to investigate the possibility of taking legal action, including but not limited to claims for damages, which may be of interest to various parties, including myself, the EIB, some officials at the EIB, the Swedish government and some government officials personally. By denying SWAN (Swedish Automobile) and Saab Automobile access to the funding that I offer, what these companies want and still desperately want, both the Bank and the Swedish government acted against all involved parties concerned, particularly against Saab and SWAN’s employees , suppliers, traders, lenders and shareholders

Antonov is reportedly investigating whether he can sue individual ministers of the Swedish government, while the ministers in question angrily deny that they are working against the interests of the Swedish auto industry. Meanwhile, far from calling for the overthrow of the government, the Swedish press is investigating Saab’s outlays for “management services” in recent years, and has found that CEO Victor Muller may be siphoning cash off to the tax haven of Curacao.
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SvD.se reports that Paul Akerlund, Saab’s former IF Metall (one of Sweden’s largest trade unions) representative and now Trollhättan Municipal Council Chairman, has called for the resignation of Saab CEO Victor Muller, saying

I do not think Victor Muller is a good president. He is an owner and a contractor, but he has not sufficient knowledge about how to manage production and development

And Akerlund is no city government busybody, but a longtime company insider who has been influential in Saab’s post-GM life. Having shepherded Saab through the challenges of the past two years, this is another grim sign that Saab is about to succumb to the realities that have dominated TTAC’s Saab coverage for years now. A commentary in SvD, titled “Thank Muller for Painful Bankruptcy” sums up the somber mood in Sweden:

[Saab] has been on artificial respiration for nearly two years. It is down now, and from all indications we can only conclude that the whole process was a painfully protracted bankruptcy. And we have only one person to thank for it.

Now that it has been first leaked then confirmed that the European Investment Bank EIB will not let Russian financier Vladimir Antonov get close to Saab, Antonov says he had known that all along.

Antonov’s spokesman Lars Carlstrom told Reuters that his boss “has known for a few weeks that the EIB would not let him invest in the iconic Swedish car firm,” Reuters reports. That revelation should come as another blow to Saab’s crumbling bastion of enthusiasm, Saabsunited, which had reported just yesterday that “Antonov is trying to save the situation.”

With the troops left dazed and demoralized, the generals practice the ancient art of finger pointing. (Read More…)

Checking in on Saab, which becomes as cheerful as visiting a relative in a hospice, we hear that Saab can’t make payroll again. Says The Local: “Saab informed white-collar staff on Tuesday that they would not receive their salaries on time this month. According to a report in the Dagens Industri (DI) business daily, the money will be delayed due to the non-payment of a installment from Bahamas-registered fund Gemini.”  The natives are getting restless: A local politician demands Victor Muller’s head. (Read More…)

Over the weekend we told you Saab-watchers to “expect a run on the bankruptcy court in the coming days and weeks,” and according to Bloomberg the process has already begun. Christina Lindberg of the Swedish Debt Enforcement Agency tells the news service that eight suppliers have requested that their portion of the 104 debts registered with the agency be collected and that

We will start the collection process in a few days.

The good news? A previous request to place a Saab subsidiary in bankruptcy has been revoked as the supplier in question there was paid off. Now, however, with eight more debts going to collections (worth an undisclosed amount, we know that one debt alone is worth around $70m and estimates put the total at around $1b), the situation has become dire once again. The answer? Vladimir Antonov, of course! Thelocal.se reports that suppliers are pushing for the EIB to approve Antonov’s ownership stake, seeing the Russian as the only way out of the situation. And because the EIB will clearly never approve Antonov, another report that’s just breaking now says that Saab is seeking to “replace” the EIB loan in order to bring Antonov on board. The looming question: who on earth is going to lend this bleeding-out corpse of a company $350m? Does Antonov even have a billion to spare for his pet project? Needless to say, nobody has the faintest clue… they just know it has to happen. Yikes!

Last week, a small Swedish parts supplier by the name of SwePart did not want to wait any longer and asked a Swedish court to declare a key Saab subsidiary, Saab Automobile Tools, bankrupt. Bankruptcy of the subsidiary would have meant the end for Saab as well.  Hectic activity ensued. On Friday afternoon, there was an announcement that the matter had been settled and the bankruptcy petition was withdrawn. Expect a run on the bankruptcy court in the coming days and weeks. (Read More…)

If Saab survives long enough, it plans on developing three new vehicles which China’s Youngman Auto will build in China, including a 9-6X midsize crossover SUV. But, as it turns out, a 9-6X already exists… at the museum in Trollhättan. Auto Motor und Sport reports that six years after Saab did the hard work of re-badging a Subaru Tribeca, the firm has brought the prototype out of storage to show… I don’t know, what might have happened had GM kept its stake in Fuji Heavy Industries? The good news is that the Tribeca almost makes more sense as a Saab. In fact, it almost makes you wonder why Subaru didn’t just buy Saab, since it basically stole the Swedish brand’s college-town-lefty market niche. The bad news: Saab’s forthcoming made-in-China 9-6X probably won’t be as good as this cynical GM-era rebadge. Oh well, perhaps this six-year-old reminder of Saab’s extended decline will help the faithful get over their terminally ill Swedish patient…

One of Saab’s suppliers, SwePart Verktyg AB, asked a Swedish court to declare a key Saab subsidiary, Saab Automobile Tools, bankrupt today reports Automotive News [sub]. Saab Tools owed about $935,000 to SwePart for tooling, and according to the supplier

More than one week has passed from the summons and payment has not yet been made. Saab Automobile should therefore be considered insolvent… We don’t want them to go into bankruptcy, I wish you understand that, that would be horrible, but we are a small company and for us that is a lot of money

Saab Tools was created to guarantee EIB loans for tooling, so had the “subsidiary” been declared insolvent, the whole ship would have gone down. But before a judge could act, Saab somehow managed to put out the fire, as a company press release proclaims

Swedish Automobile N.V. confirms that Saab Automobile Tools AB reached agreement on payment terms with the supplier that filed for bankruptcy, thereby resolving the issue.

Once again, Saab pulls the fat from the fire at the last minute… but the clouds are dark and rolling in fast. Many suppliers are still looking for money, Saab Automobile has 104 claims pending against it, and SwePart’s bankruptcy request won’t be formally withdrawn until Monday. And with the Swedish government and EIB seemingly unwilling to lift a finger to help, even the faithful are losing hope. This feels like the beginning of the end of the end…

After spending much of this year not producing vehicles, Saab is anxious to get to work on its 11,000 vehicle backlog of orders, and production was supposed to start on August 9 after workers return from Summer vacation. But a Saab press release reveals that the troubles aren’t over, with short term financing and supplier agreements still to hammer out, and that production won’t resume until August 29 at the earliest. Gunnar Brunius, Vice President of Production and Purchasing explains:

I am positive about the progress we made on the payment terms with our suppliers and it is good to see that we all want to make it work. What we need now is a full commitment on supply of parts into our factory to be able to restart production and secure a stable manufacturing operation. We are now working hard with our suppliers to nail down these plans, commit to a delivery schedule and start building the close to 11,000 cars that we currently have in our order books. The industry-wide summer break at our suppliers caused certain key suppliers not to be able to supply us in time. Saab Automobile hopes to restart production earliest in week 35 provided that it is able to commit to a delivery schedule with its suppliers.

But wait, there is some good news! Saab’s Communications Manager Eric Geers tells GP.se

I can promise one hundred percent to the salaries paid next week. Where the money comes from is not important, the main thing is that we pay [emphasis added]

That kind of sums up the whole Saab situation nicely, doesn’t it?

I am getting tired writing about Saab. According to the clicks on Saab-stories, you are getting tired as well. Empty promises, missed deadlines, endless wait. There is even dissension in the ranks of Saabsunited, where more and more people are getting tired of waiting. So, let’s make this short. (Read More…)

[Editor’s note: the initial draft of this piece misunderstood the structure of the deal. Youngman and PangDa have paid over $350m for a 51% of Swedish Automobile, Saab’s parent company (which has a market cap of $68m). Funding for the New Product Joint Venture (50% owned by Youngman, 50% owned by Swedish Automobile) has not been disclosed. See comments for more background.]

Just when the lights seem to be going out all around Saab, with employees calling for bankruptcy, suppliers in revolt and even the Swedish government pretending like nothing was happening, Saab always seems to find away to prolong the agony. Selling, then leasing back the factory was one step that’s been approved by the EIB. Getting the suppliers to take ten percent down on deliveries? Well, it turns out that management has some time to sort that one out, as the factory’s annual vacation starts in a week, and Saab is letting its employees go a week early rather than starting up and then shutting down the line. And the company is certainly hoping that it won’t have to restart the line simply to restore confidence, as it’s announcing the “final agreement” with China’s Youngman Auto and the dealer group PangDa for  €245m (about $365m) which it hopes will clear up the perception that Saab is a sneeze away from death. Needless to say, this agreement fits squarely into the “stringing along” category rather than the “game changing” category…

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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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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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Victor Muller will no longer have a problem reaching a quorum or a unanimous decision at Saab board meetings. Muller is the sole remaining director. The rest of the board bailed. (Read More…)

Hello? Hello? Part one:

It is 7:00 am on a Friday morning in Shanghai, where an obviously insomnia-suffering Carmen Lee posted the following two hours ago (says Google) at Gasgoo. Gasgoo’s reporting quality had slacked a bit recently, but here is hoping they still can translate alright:

“Pang Qinghua, CEO of the Pangda Automobile Trade Corporation, the company hailed as Saab’s savior, had a short interview with the Beijing Times where he answered questions regarding Pangda’s proposed partnership: (Read More…)