"They Cannot Pay Their Bills." Saab Stops Production Yet Again

Bertel Schmitt
by Bertel Schmitt

Yesterday, Spyker CEO Muller said everything is peachy. Saab “is not on the verge of collapse,” Muller said to a rapt audience of reporters, while, as Reuters snidely remarked, “Saab was presenting new vehicles already shown at the Geneva auto show.” Muller promised that “a small glitch does not change the fact that cars are being made,” and that Saab would have the widest and newest range in its history next year. This year? No problem at all. Just that output would be more weighted towards the second half of the year. Which in itself would be a miracle, and outpacing the competition, because in Europe, auto sales are more weighted towards the first half of the year. This was yesterday. Now is today.

Today, the production lines at Saab ground to a halt again. No parts. Nobody was quick-witted enough to blame Japan. “Saab halted production anew on Tuesday due to parts shortages after failing to pay suppliers,” says Reuters. A day after the glowing presentation, Victor Muller told Reuters that Saab expects to have more production line interruptions: “This is an ongoing thing. It will take some time to get everyone back in line properly. We will get it under control.”

Meanwhile Saab spokeswoman Gunilla Gustavs told the wire service that they “are working intensively to make sure the flow gets going again. We are having discussions with suppliers and doing our best to come to mutual agreements.”

Saab’s part suppliers are less optimistic.

“They cannot pay their bills,” Svenake Berglie, chief executive of the FKG suppliers’ sector organisation, told Reuters. FKG said four or five of the biggest suppliers stopped deliveries because of unpaid invoices.

Everybody is now waiting for Russian sugar daddy Vladimir Antonov to come out of exile.

Maybe, we aren’t the only ones who had received threats for previous reporting. Reuters writes very cautiously: “Antonov, who owns banks in Lithuania and Latvia, used to have a 29.9 percent stake in Spyker but had to sell it, at GM’s insistence, before Spyker could buy Saab. Media reported at the time that Antonov had links to organized crime.”

No need to hold back. Meanwhile, even Russia’s state-owned news agency RIA-Novosti writes: ”Antonov was a key shareholder in Spyker, but he was forced out shortly before the Saab sale deal as GM reportedly suspected the Russian businessman of links to organized crime.” If RIA-Novosti says so, who are we to argue with them.

Antonov has applied to the Swedish Debt Office to take a below 30 percent stake in Saab. The BBC called the Debt Office and was told that “a formal request to clear Mr Antonov is currently under consideration, although it will take weeks rather than days before a decision is made.”

Meanwhile, even over at the Saabsunited cheering section, the mood turns from ebullient to guarded. Good advice is being dispensed: “Saab cannot afford big mistakes, hardly small. How should it proceed? With sincerity, honesty and humility.“

Or not, as the saying went here in years behind.

Bertel Schmitt
Bertel Schmitt

Bertel Schmitt comes back to journalism after taking a 35 year break in advertising and marketing. He ran and owned advertising agencies in Duesseldorf, Germany, and New York City. Volkswagen A.G. was Bertel's most important corporate account. Schmitt's advertising and marketing career touched many corners of the industry with a special focus on automotive products and services. Since 2004, he lives in Japan and China with his wife <a href="http://www.tomokoandbertel.com"> Tomoko </a>. Bertel Schmitt is a founding board member of the <a href="http://www.offshoresuperseries.com"> Offshore Super Series </a>, an American offshore powerboat racing organization. He is co-owner of the racing team Typhoon.

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  • Sam P Sam P on Apr 06, 2011

    Pity. Well, I guess Volvo's still around for those who would like a Swedish car, quirks and all.

  • Paul W Paul W on Apr 06, 2011

    Saab has decided to shut down production for a week, until April 12:th. And Bertel, you're underestimating the Saab enthusiasts ability to come up with excuses, they've already started blaming it on the Japanese earthquake.

  • CanadaCraig You can just imagine how quickly the tires are going to wear out on a 5,800 lbs AWD 2024 Dodge Charger.
  • Luke42 I tried FSD for a month in December 2022 on my Model Y and wasn’t impressed.The building-blocks were amazing but sum of the all of those amazing parts was about as useful as Honda Sensing in terms of reducing the driver’s workload.I have a list of fixes I need to see in Autopilot before I blow another $200 renting FSD. But I will try it for free for a month.I would love it if FSD v12 lived up to the hype and my mind were changed. But I have no reason to believe I might be wrong at this point, based on the reviews I’ve read so far. [shrug]. I’m sure I’ll have more to say about it once I get to test it.
  • FormerFF We bought three new and one used car last year, so we won't be visiting any showrooms this year unless a meteor hits one of them. Sorry to hear that Mini has terminated the manual transmission, a Mini could be a fun car to drive with a stick.It appears that 2025 is going to see a significant decrease in the number of models that can be had with a stick. The used car we bought is a Mk 7 GTI with a six speed manual, and my younger daughter and I are enjoying it quite a lot. We'll be hanging on to it for many years.
  • Oberkanone Where is the value here? Magna is assembling the vehicles. The IP is not novel. Just buy the IP at bankruptcy stage for next to nothing.
  • Jalop1991 what, no Turbo trim?
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