Fisker has laid off nearly all of its rank and file employees. Reuters reports that 160 people were out of a job as of today, while 53 senior employees will stay on, apparently to help find a buyer for Fisker’s assets. Fisker is also hoping to re-negotiate a loan payment to the Department of Energy, due on April 22nd.

The 30 year run of Suzuki auto sales in the United States is one step closer to coming to an end, as a California bankruptcy court approved Suzuki’s restructuring plans.

Suzuki Motor of America will be the new entity responsible for selling motorcycles and powersports equipment once Suzuki sells off its remaining new car inventory. Meanwhile, Suzuki sales outlets will continue to honor warranties and provide parts and service for the company’s automobiles.

A report by Automotive News scribe and Suzuki expert Ryan Beene highlights a bleak picture for Suzuki; sales fell from over 100,000 units in 2007 to a paltry 25,357 units in 2012 – about as many Camrys as Toyota sells in a month. An unfavorable exchange rate and contraction in the sub-prime auto market ultimately spelled doom for the auto maker in America.

Fans of the brand hoping for a return look to be out of luck as well. Chairman Osamu Suzuki ruled out a future return to America, stating

“Taking into account the issue of the exchange rates and the fact that we have no future outlook for making large vehicles, I think re-entry would be extremely hopeless.”

As for the status of Suzuki’s inventory – if you want an SX4 or Kizashi, you better act fast. A Suzuky spokesman was unable to tell Beene how many cars were left in America, while cars.com listed just 1376 Suzuki cars nationwide.

NOTE: I received the following email from Saab Automobile Parts North America. As I was not aware of the recent details behind Saab’s parts/service operation (my bad) I felt obligated to share this, unedited, with everyone. – SM

Sajeev,

We read, with great interest, your latest Piston Slap post and the many comments in response to “The Last Saab = good Deal?” We wanted to take this opportunity to let you know about Saab Automobile Parts North America, the exclusive authorized provider of Saab Genuine Parts in North America. Venues like yours help us to get the message out that Saab Genuine Parts and Service are available.

For your review, I’ve attached a copy of our recent press release, which announces our newest initiative, the Saab Secure Program; but also provides more detail on our company, ownership and highlights of our very busy start-up period. In a short period of time, we’ve made notable progress on many fronts, to provide a structure of strong support to current and future Saab owners:

• Established a network of 179 Official Service Centers in the US and Canada.
• Returned availability of Saab parts back to the high levels that existed prior to the Saab Automobile AB bankruptcy.
• Entered into an agreement with General Motors to administer warranty services on 2009 and prior model years, providing a seamless warranty experience for those Saab owners.
• Launched the Saab Secure program to support owners of 2010 and 2011 Saab models.
• Launched a North America Technical Assistance Center to provide technical help for Saab Service Centers in providing high quality repairs for Saab owners.
• Launched a North America Customer Assistance Center on January 7, 2013 to support all Saab customers in North America needing assistance with inquiries about parts, accessories, service and technical support.
• Launched a new SPNA website, Saab.com and Facebook page to share up to date information about the company, service facilities and current promotions.

We welcome the opportunity to discuss Saab Automobile Parts North America with you in more detail. Please feel free to contact me at any time to set up an interview.

Thank you!

The Saab Secure Press Release_FINAL

Sajeev answers:

There you have it, dear readers. The press release, dated 1/10/13, is here to clear up any Saab-related quandaries. And since the Saab mother ship is listening, this is a great time to give them some more unfiltered feedback.

Click here to view the embedded video.

If you think I’m a typical media shill for posting a press release, I can dig it.  But some releases are too, um, valuable to ignore. Plus, with the above music video in mind, you’ll see I’m merely keeping an Angry God from sending a Turbo Saab with Juan Manuel Fangio behind the wheel to my doorstep.  I really, honestly, love the engineering in Saab’s seats…don’t put me in the same hole Ford left the Panther Chassis!!! 

And to the detractors, it begs the question: would you consider buying a Saab now?  I re-checked my link, and 6 more new Saabs showed up online!

Any other questions? Apparently Saab is listening, so speak up.

Send your queries to sajeev@thetruthaboutcars.com. Spare no details and ask for a speedy resolution if you’re in a hurry.

I got my 2007 9-3 serviced at the Falls Church, VA Saab dealership. My question: They had new (2011) 9-5s for $20,000 off the sticker price. Almost half off. Are they a good deal? Would you buy one?

Sajeev answers:

I initially regretted my delay in answering this Piston Slap email, as the queue is long and unfortunate to a time sensitive matter like leftover Saab inventory. But then I found 167 new SAABS still for sale as of yesterday.  Who-hoo! I dodged a bullet while these poor dealers still have laggards on their floorplan.

The question isn’t about buying this Saab, but about buying any Saab: are they ever a good deal?  NO!

But that’s not the point…if you actually like Saabs, you don’t mind spending far too much money on these repair/maintenance whores. Or you love them enough to make their repair a personal hobby, complete with all the tools of the trade.  Either way, yes, this is the BEST time to buy a new Saab.  The prices will be good and you’ll never have this opportunity! Ever again!

You wrote to TTAC because you like Saabs. And you get them serviced at the dealer, which implies you have the money to keep them running properly.  So if you want to run a 2011 model into the ground, you might have that opportunity.  And who knows, the whole GM-SAAB-China thing is still unfolding, perhaps you will have ample supply of spare parts in the future.

Your last question: would I buy one?  I already bought one of the last Ford Rangers back in 2011…so no, I’m gonna enjoy that same feeling but without the nightmarish downsides of Turbo Saab ownership.  And yes, there are still 98 new Rangers for sale–two are of the 4-cyl, 5MT variety like mine–if you wish to join me on the dark side. Or bright side. Either way.

Send your queries to sajeev@thetruthaboutcars.com. Spare no details and ask for a speedy resolution if you’re in a hurry.

Only 6 dealers haven’t taken a buyout offer from Suzuki – of the 219 Suzuki dealers in America, 213 took the offer from American Suzuki, including the top 50 dealers by volume.

Automotive News reports that dealers can expect 50 person of the money within 10 days of agreeing to the settlement, and the rest will come following the bankruptcy proceedings. Dealers will now be service and parts outlets. In some cases, dealers are attempting to clear out their inventory of over 5,000 cars by offering 72 month interest free loans among other incentives. Suzuki sales were up 22 percent year-over-year by AN‘s count, no doubt spurred on by the incentives.

Being a Suzuki dealer is surely one of America’s least enviable jobs; franchise holders must choose whether to accept a cash settlement and a contract to provide parts and service in exchange for their franchises, or whether they want to fight the matter in court.

Based on Suzuki’s estimate of $50 million in total, the settlements average out to about $227,000 per dealer. Payouts are set to be calculated based on sales volume, rent, how much inventory is held, facility investment and other factors. But by taking the deal, they waive the right to any future claims against Suzuki.

Automotive News highlights the main question on the minds of Suzuki’s former sales force; will a payout be comparable to what dealers would receive in accordance with state franchise laws. The predicament, according to AN, is this

Had Suzuki simply canceled the franchises, outside bankruptcy court, state franchise laws would have compelled the automaker to buy back new-vehicle inventory and parts and to compensate dealers for facilities and other costs.

A National Automobile Dealers Association official last week said Suzuki dealers should receive what they would be entitled to under franchise laws and advised them to consult attorneys. Dealers were receiving the offers late last week and were bound by confidentiality agreements.

Suzuki dealers can choose not to sign the settlement offers and file a claim in the bankruptcy case for what they believe they are owed. But such a move means a dealer’s claim could be worth just pennies on the dollar by the time Suzuki pays off other, higher-priority creditors.

While one attorney says that the dealers will represent the largest unsecured creditors, only a small percentage of Suzuki dealers sell most of the cars. A majority of them sell fewer than 5 new Suzukis per month.

American Suzuki has received court approval to borrow $45 million to help restructure their dealer network following a Chapter 11 filing.

Dealers will be offered cash payments within 10 days if they agree to scrap their franchise agreements.

Bloomberg has their own quick and dirty explanation

“Should dealers agree to end their contracts by Nov. 30, Suzuki Motor would pay them half of what they’re owed by the distributor within 10 days, according to court documents.

The dealers could later attempt to collect the rest of what they are owed through the bankruptcy process.

The company may owe dealers about $50 million…”

Dealer franchise laws vary by state and offer dealers a fair amount from protection from attempts to shut them down by the manufacturers. But Suzuki is hoping the payouts will provide a clean break for their dealers. And with nearly 70 percent of them selling less than 5 cars a month, it would be hard for them not to take the money and run. There are also 4,000 or so unsold Suzuki cars that dealers can legally return to the manufacturer – so if you’re really hankering for an SX4, act now.

A couple of weeks ago the Wall Street Journal published an article about a “little-noticed” lawsuit in U.S. Bankruptcy Court filed by a trust representing “old” GM’s unsecured creditors. Those creditors are challenging a 2009 deal between GM Canada and a group of hedge funds that helped keep GM’s Canadian subsidiary out of its own bankrupcy. It’s a bit surprising to me that the WSJ article itself got very little notice in the automotive world because, if successful, the lawsuit could undo at least part of GM’s restructuring or result in a $1.3 billion price tag for the automaker. In regulatory filings GM has said its possible exposure will be less than that, $918 million, though in theory the bankruptcy court could reopen the entire bankruptcy, which would be much more disruptive to GM than just paying out a billion dollars.

The plaintiffs in the suit claim that the deal not only treated them unfairly compared to other creditors , but that it was also not properly disclosed to Judge Robert E. Garber, who presided over General Motors’ bankruptcy and restructuring in the U.S. Bankruptcy Court for the Southern District of New York. Perhaps ominously for GM, Judge Garber has already expressed “shock” over the fact that he was not informed of the deal, which the claimants allege was consummated after the Detroit based automaker filed for bankruptcy in his court. Had GM Canada been forced to file its own bankruptcy over that debt it would have likely substantially stretched out GM’s bankruptcy process from weeks to possibly years.

Earlier this year, Judge Garber said,

“When I heard about that, it wasn’t just a surprise, it was a shock. When I approved the sale agreement and entered the sale approval order I mistakenly thought that I was merely saving GM, the supply chain, and about a million jobs. It never once occurred to me, and nobody bothered to disclose, that amongst all of the assigned contracts was this lock-up agreement, if indeed it was assigned at all.”

The case centers on $1.3 billion in GM Canada debt to a group of hedge funds that was waived in 2009 after GM Canada agreed to make a lump sum cash payment of $367 million (USD) to those hedge funds. To make that cash payment, GM Canada in turn borrowed $450 million from old GM. New GM says that it can prove that loan was made before it filed for bankruptcy before Judge Gerber. The trust representing the creditors says that the deal was backdated to hide it from the judge. Those creditors are unhappy because while 35 cents on the dollar doesn’t sound like a great deal, that’s better than what they got.

Ronnie Schreiber edits Cars In Depth, a realistic perspective on cars & car culture and the original 3D car site. If you found this post worthwhile, you can dig deeper at Cars In Depth. If the 3D thing freaks you out, don’t worry, all the photo and video players in use at the site have mono options. Thanks for reading – RJS

“President Obama is proud of his bailout of General Motors. That’s good, because, if he wins a second term, he is probably going to have to bail GM out again.” Sounds like our august founder, Robert Farago, sounding off about American Leyland the New GM. Nope, it’s Forbes this time, and they come to bury the General, not to praise him.

Louis Woodhill’s article pulls no punches. Using TTAC’s Winterkorn Meets The i30 article as evidence, combined with Car and Driver‘s decision to rank the 2012 Passat first in a family-sedan test (and the Malibu last), Woodhill states

Uh-oh. While Dan Akerson is busy rearranging the deck chairs on GM’s Titanic, Martin Winterkorn is leading VW to world domination via technical excellence.

Your humble author would suggest that it is Toyota, not Volkswagen, that has its foot on the General’s throat, but that’s a minor point.

The Forbes article rustled enough jimmies on Wednesday that the publication decided to run a counterpoint today, entitled “For GM, Bankruptcy Talk Is Its Own Fault”. The author, Micheline Maynard, argues that GM has a good cash position — sounds familiar — and plenty of ability to borrow more — which they’ve done in the past. When the best argument your defenders can make against bankruptcy is that you can borrow more money, you’re in bad shape. My AMEX is supposedly ready to charge a Lamborghini Aventador but that doesn’t mean I can pay for… hmm. Okay, I’m going to wrap this up. In unrelated news, TTAC may have a review tomorrow of the Lamborghini Aventador.

The most successful brands in our industry don’t have much meaning to them.

Toyota, Chevrolet, Ford, Hyundai, Kia, all of these are names that wouldn’t evoke much of any imagery had their manufacturers never existed.

Mercury and Saturn are popular planets that make you think of space and the futuristic pursuit of those faraway places. Acura should be quite accurate and precise. Rams are tough. Infiniti pays homage to the outer limits of capability and performance.

Yet all of these names experienced failure, or ultimately failed, due to the key essential ingredient within any brand’s reputation.

Product.

Scion now finds itself on the edge of irrelevance due to a series of bad products. Although I believe that Scion is essential to Toyota’s long-term performance in North America, other experts have plenty of good reasons to disagree with me.

The most obvious loser these days is smart, which has turned out to be a failure par excellence. You didn’t need a brilliant iQ or bat 500 with our prior features on dead brands to figure out why. Bad product will always be to cars what bad loans will be to the banks.

A risk free opportunity to shed debt, liquidate assets, and drink deeply in the vassals of government loans and grants.

Doubt me?

You should, if the automaker you are considering is headquartered in Europe.

Opel, Fiat and Peugeot appear to be suffering a decline that is, in part, due to their dependence on home markets that are stunted by an endless sea of bad governance and legacy costs.

A lot of folks believe that European consolidation has been due ever since British Leyland got sliced, diced and sold to whatever foolish suitors were willing to buy their market sizzle. Those rotten stakes didn’t add up to very much back then. Today the sizzle of a brand name means even less since the profit in mature markets may be non-existent.

Now these victors of yesteryear find themselves competing against global automakers that are not dependent on mature and declining markets with little to no profit. Europe’s long cold recession may only give VW the smallest of sniffles. While Opel, Fiat and Peugeot are now suffering with varying levels of flu like symptoms, and unprofitable products developed for a home audience that is simply not there.

The historians among us may look back on the past failures of these three in North America and wonder, “Does a lack of success in major overseas markets eventually yield itself to domestic weakness?” If this is the case, does the ‘new’ GM and Chrysler stand even a shadow of a chance over the long run?

As for Japan Inc., Mitsubishi seems to be tanking it here in North America… even as a Hertz special. Suzuki is hanging on in a near zombie state of North American product rot. Not too far away in India, Jaguar and Land Rover are still not quite ready for a prime time hit. Should they pack up their star spangled tent and focus their limited resources on the emerging economic engines of East Asia and the Pacific Rim?

Then we have the high end of the market. Too many names and certain pseudo-elite manufacturers are playing too many games with an information enriched public.

The shakeout is already taking place. Maybach never could muster up the prestige of Mercedes. But how about Maserati? Will their social equity investments continue to yield a small dividend of increased sales? Or will the better funded competitors in Germany and Japan turn the beleaguered trident into an archaic pitchfork?

Change in the global auto industry is always slow. You always see the dimming headlights well before the automaker sees the cliff. But time and money are finite, as is the future for some modern day manufacturers and their brands.

It looks like nearly everyone will emerge from 2012 with a continuing lease on life. SAAB may even be revived. But how about everyone else by say… 2014?

Who do you believe is already on the slippery slope to a depreciation hell solely reserved for orphan brands?

A lawsuit filed by a Florida investor against General Motors over the age-old practice of “channel stuffing”, or sending inventory to dealers and recording it as a “sale”, so that revenue numbers can be pumped up while the vehicles languish on dealer lots. The practice of channel stuffing is universal in the auto industry, but in this case, the consequences are much broader.

The specifics of the lawsuit, which hinge on specific phrases in the IPO prospectus, can be found here. The class action suit is unlikely to do any serious damage to GM, and will likely be the site of a long, protracted legal battle. The implications of channel stuffing are what really matter, and may provide a glimpse into both General Motors, and its government stewardship.

While General Motors is touting their 32 percent year-over-year increase in sales, a closer look at the numbers reveals a couple of things.  According to Bloomberg, inventory for full-size trucks was at a 135 day supply, as GM ostensibly cranked out profitable pickups and sent them off to dealers across the land, allowing them to book sales of their most lucrative vehicles just in time for the half-way mark – and coincidentally (or not), government purchases of GM vehicles rose 79 percent in June. Retail sales were up a mere 8 percent, while fleet sales rose by 36 percent.

There is a political argument to be made for all of this, with GM’s financial health being integral to President Obama’s re-election, and a validation of the auto bailout and his economic policies. The Treasury still owns a 32 percent stake in GM, and selling their shares now would mean a major loss of taxpayer money. If GM’s fortunes were to reverse, than a quick exit, perhaps at a profit, might be possible.

The inflated inventories and “channel stuffing” aren’t just a manipulative way to make GM’s numbers look better than they are – they also expose GM to a potentially dangerous financial situation similar to 2008. General Motors, like any other car company, must sell the cars it builds. Its inventories are much higher than other manufacturers. Prior to the bailout, GM was caught out with large inventories of full-size trucks and SUVs at a time when a poor economy and rising gas prices made them unattractive to consumers. This same scenario occurring again isn’t inconceivable.

“There have been no formal bids,” receiver Anne-Marie Pouteaux told Reuters. Her colleague Hans Bergvist added that they “ have had discussions with a number of interested parties. Some of them are interested in the factory as a whole and some of them are interested in parts of it.”  But no, no bid.

It would be folly to place a bid, because even the receivers don’t know yet what that bid will buy. In a press conference on Saturday, receiver Hans Bergvist said:

“Everything that was possible to pawn in Saab has been pawned. The work to identify Saab’s assets is not yet complete, but we have come a long way.”

Anybody who had lent Saab money recently, did so with assets pledged. In July, just as a for instance, Saab sold 50.1 percent of its real estate holdings to a consortium led by Hemfosa Fastigheter AB, for about $40m. They leased it right back, with the proviso that the rest is security for the rent. Should Saab default on the rent, the contract allegedly said, then the consortium will say tack så mycket and  owns the whole thing.

Even in a bunker in Sweden, from which the last faithful had been sending blog posts in support of the zombie brand, defeatism makes the rounds.

“The headline everywhere is “Saab is dead”, which actually, right now, is true.”

This amazing revelation comes from Saabsunited, which continues:

“The fact that Saab has not even had money to buy toilet-paper since march is a fact that not a lot of people knew about. We’ve heard horror story after horror story from Saab employees and suppliers describing how a company has to act when it is completely out of money and saving up on absolutely everything! But despite having to clean the offices, toilets, kitchens and even buy supplies themselves for their own money the employees stayed at their post! They did not leave which is the biggest evidence of how great Saab actually was.”

They said it: Was.

And the reaction from the peanut gallery?

“+1!”

“+2!”

“+3!”

“Griffin up!”

Want  a piece of “quirky” history?  While the good folks at the Church of the One True Saab still have dreams of white knights, Saab’s heritage is being auctioned off. This caught the attention of Bringatrailer.com (“The best vintage and classic cars for sale online.”) In a lengthy piece, the organ for trailer trash collector’s online hub salivates over “the entire collection of 100+ cars belonging to the Saab Heritage Museum in Trollhaettan, Sweden” to the liquidator.

The cars  include everything from the 1946 Ur-Saab to recent show prototypes. Complete listing here, in Swedish. A rare collector’s item in itself!123 pages, 2 pictures per car. Saab history, written by the executioner. Download your piece of Saab history for  FREE!

As for the auction, you don’t even need to bring a trailer to drag away your loot. Also on auction are the workhorses of the museum which include an enclosed trailer, and a Saab 9000 back-halved flat-bed hauler.

The cars are auctioned off by the Swedish law firm Delphi. Written bids on the collection, as a whole, or, come on, cheapskate, individually, are requested via mail or fax by this Friday, January 20th. Instructions here.

Place your bids, or do we have to send Steve Lang over there? Come on, didn’t you always wanted to own the concept cars, just as they show them at the car show? Now you can. Their loss, your gain.

Yesterday, the alleged enthusiast blog did play its usual “if we would tell you, they would shoot us” about a possible suitor from India:

“We are not allowed to reveal the identity of the company yet, but we are allowed to reveal some facts about it. They are of course based in India but acts on a world-wide basis with much more than 100’000 employees worldwide. They are a multi-billion dollar company, that work on multiple fields such as energy, logistics, real estate and of course within the aerospace and automotive industry.”

Bloomberg does not bother playing twenty questions and reports:

 “Mahindra & Mahindra Ltd., India’s biggest sport-utility vehicle manufacturer, is interested in buying at least parts of bankrupt Swedish carmaker Saab Automobile, two people familiar with the situation said.”

 Not more is known about the matter. According to Swedish media, Mahindra hasn’t even had an audience with the administrators yet.

Thinking of cashing in on Saab’s misfortunes? Contemplating your own bankruptcy deal, where you can buy a brand new (well, nicely aged on the dealer lot) Saab for pennies on the dollar? Think again. Edmunds.com Senior Consumer Advice Editor Philip Reed says you will be in for a nasty surprise:

“Consumers shouldn’t expect a fire sale on unsold Saabs just yet. While incentives are no longer being offered for now, our research indicates pricing remains unchanged at Saab dealerships. Dealers are taking a wait-and-see approach since this situation is changing rapidly. But Edmunds.com analysts estimate that the True Market Value price of new vehicles will be discounted by an average of 28 percent from MSRP — and as high as 33 percent in some cases.”

That may happen, down the road. Currently, prices at some dealers are going up. Yes, you heard right. Up. Edmunds found a Saab dealership in Los Angeles where new Saabs are sold in “as-is” condition as if they were used cars, but they are priced at full MSRP. The reasoning is that some models had $12,000 in incentives the previous day, but these price breaks were no longer available because of the bankruptcy.

One reader told us that he went to a Saab dealer, made a lowball offer, only to hear the story that because Saab is in bankruptcy, the company will buy back all cars on dealer’s lots. Sure. And low flying pigs were sighted of Trollhättan.

If you are worried that you may have to live without daily episodes of the Saab Soap, now that the company is bankrupt, worry no more. Or in the words of Saabsunited: “never ever give up!” The show will go on.

Today, Automotive news China [sub] reports:

“Zhejiang Youngman Lotus Automobile Co. says it has purchased Saab Automobile’s Phoenix architecture despite its failure to acquire the automaker itself. Youngman already has set up a company in Sweden to develop new models based on the architecture, said Rachel Pang, Youngman’s spokeswoman and daughter of Youngman President Pang Qingnian.”

The trouble is, nobody in Sweden or elsewhere has heard about it. As far as Sveriges Radio knows, the discussions between Youngman and the bankruptcy administrators  are ongoing. No sale of nothing has been announced. Victor Muller’s and Vladimir Anntonov’s propaganda organ The independent enthusiast site Saabsunited implores the faithful:

“Don’t believe any report that shows up. The media is desperately looking for things to write about and comes up with, to say the least, strange news. Like with the rumours about Phoenix being sold to Youngman seperately we will try to figure out the truth behind it and keep you updated ad good as possible.”

To me, the story comes as expected. A few days ago, I predicted:

“I wouldn’t be surprised if a license for the PhoeniX platform won’t suddenly show up at Youngman, pledged as security for some of the money that had been paid. Then, GM will say that Phoenix IP is mostly theirs, and there will be a protracted and messy lawsuit.”

Whoever thinks the Chinese paid a few million out of the goodness of their hearts is gravely mistaken. The way we (and other Swedish media) understand the deal is that there was a loan, with the Phoenix platform pledged as collateral. Youngman most likely takes the position that the loan was defaulted upon, and the collateral is theirs. This can be a long, expensive, and messy lawsuit until this is sorted out, and in a bankruptcy, who has the nerves and money for that?

After delegations of Pangda and Youngman had travelled to Trollhättan to inspect the factory, one returning Chinese traveler mentioned to a contact of mine that the factory is great, but it’s in the wrong place. In Sweden, workers would earn way too much and go home early, contrary to the Chinese worker, who would have a much higher work ethic for less money, the traveler opined. If all goes well (for the Chinese,) the Trollhättan factory will come to China. Usually well informed Sveriges Radio reports that Youngman is interested in buying the Saab assets in a bankruptcy sale.

Updated with Victor Muller’s press conference.

This interest has been confirmed by Hans Bergqvist, one of the bankruptcy administrators assigned to the case. What Youngman would be buying is a factory, free of obligations, but also free of any technology licenses and without the Saab name. According to Sveriges Radio, Youngman thinks that the current 9-3 does not need a nod from GM.

A Turkish company also appears to be interested. The Turkish embassy in Stockholm has established contact.

UPDATE: Victor Muller’s press conference can be seen below (courtesy: Saabs United)

Sweden’s Aftonbladet reports that Victor Muller filed for bankruptcy of Saab this morning at the court in Vänersborg.

Dagens Industri writes that with Saab having declared bankruptcy itself, the matter will be resolved quickly. A bankruptcy order is expected during the day.

The actual verdict had been handed down by GM over the weekend. GM refused to agree to any of the deals presented.

Today, the court in Vänersborg was scheduled to decide whether to lift creditors protection, which would have opened the doors to much messier bankruptcy proceedings. Over the weekend, Muller was in closed session with Rachel Pang of Youngman to hammer out yat another last minute deal. At one point, Rachel Pang became gravely ill, and unable to attend the court proceedings. After a little while and more talk, she regained her health. Now, any court appearances are no longer necessary.

Youngman had no other choice than to realize that without the cooperation of GM, the matter was way beyond salvage. This morning, Victor Muller reached into his hat, found it devoid of bunny-rabbits, and did what he should have done much earlier.

Both dealer group Pang Da and Youngman have sunk considerable amounts of money into keeping zombie Saab at least clinically alive. Wasting your own money is seen as a grave sin in China, and the disastrous end of the Saab adventure most likely will negatively influence foreign asset purchases by Chinese entities for a while.

Muller, his out-on-bail friend Antonov, and any Chinese suitors should have realized much earlier that GM had no interest in Saab’s survival if it would be at the expense of GM’s sizable activities in China. GM agreed to sell Saab to Muller because that spared GM the messy and expensive business to shut down Saab themselves.

As expected, Saabinistas vent their anger on GM’s Facebook page. Many vow to never buy a GM product. A hollow threat: Most of them are used-car drivers anyway. Case in point: Saab’s über-flagwaver Steven Wade. Before he sold Saabsunited to take on a (shortlived) PR job at Saab, he drove a 1999 Saab 9-3, canary-yellow. Wade is already bac k in Australia, looking for a job.

No.

GM has the rights to the technology in its hands, and without that technology, Saab is just a name. A name which Saab AB, the defense company, would like to get back as quickly as possible anyway. GM had said no to several proposals so far. The latest deal that had been cooked-up involves selling a subsidiary to China’s Youngman. Rather naively, Muller seems to think that this way, a cooperation of GM is not necessary.

GM is rather miffed by ”the various new investment/sale/loan proposals that have been floated by Saab in recent days, including statements that inaccurately suggest that the consent of GM is not required for them to move forward.”

Through is spokesman James R. Cain, GM made the following statement today, deliberately ”in advance of the hearing” on Monday:

“Saab’s various new alternative proposals are not meaningfully different from what was originally proposed to General Motors and rejected. Each proposal results either directly or indirectly in the transfer of control and/or ownership of the company in a manner that would be detrimental to GM and its shareholders. As such, GM cannot support any of these proposed alternatives.”

Something else will happen on Monday: The unions representing Saab workers will check the bank accounts whether the unpaid salaries have come in. No money, no support by the unions for a continuation of the reconstruction process, union representatives told the Göteborgs Posten. That money would have to come from Youngman. With the verdict from GM, Youngman would be crazy to pay.

After enduring a rocky relationship with Saab’s management, Guy Lofalk is officially out as court-appointed administrator for the ailing Swedish brand. But although Saab boss Victor Muller had long hoped for Lofalk’s ouster, the news wasn’t all good for his slow-motion “rescue,” as Lofalk’s first replacement had to step down before he even began his duties. Reuters calls the abortive administratorship of Lars-Henrik Andersson  Saab’s “latest embarrassment,”  but TTELA reports that Andersson’s “defection [was] not based on a pessimistic assessment of Saab.” On the other hand, at least one of Andersson’s colleagues thinks he dropped out because Saab is “screwed.”

In any case Soderqvist seems to be the last remaining Saabtimist in Sweden, insisting he believes in the new plan to save the zombie brand, and he will serve as long as he continues to have faith… so what’s the new plan anyway?

JustAuto reports that

European supplier body CLEPA estimates up to EUR700m (US$910m) could be made available for beleaguered Saab to restart production, if plans by Chinese manufacturer Youngman and an unnamed Chinese investor bear fruit.

“That means [they - Youngman] will provide EUR200m and a financial investor will provide EUR500m – that will be enough to restart and give Saab a chance,” said [CLEPA CEO Lars] Holmqvist. “Youngman has already spent a lot of money, if nothing else to protect the investment they have already made.”

And where, pray tell, does this faith come from, that a Chinese bus manufacturer and an unnamed “financial investor” is ready to drop nearly a billion dollars on the auto industry’s most notoriously undead brand?

The CLEPA boss also revealed this week’s mood had swung from one of gloom to hope following his receipt of a bank statement indicating Chinese manufacturer Youngman had paid Saab EUR3.4m, believed to have covered overdue Swedish government taxes.

The supplier chief also detailed how Muller had been urged to declare bankruptcy in a bid to avoid any personal liabilities, but had resisted, a move Holmqvist endorsed.

“We have been up and down listening to Victor Muller,” he said. “On Friday I was quite pessimistic and on Friday night he [Muller] sent a copy of the statement slip that the money had been sent by Youngman.

“Then, on Monday, he was pressed by people around him to file for bankruptcy. They were afraid they would be personally responsible for debts. But he refused and he was right because the money arrived and he got a respite again. Another rabbit hopped up from the hat – I knew what was going on, but I did not think it was going to be in time.”

Where to start with this? How about the fact that €3.4m is hardly an indication that almost a billion bucks is forthcoming.. especially given the difficulties of transfering money from China? Or what about the fact that the transfer in question was for a transaction that Lofalk considered “a new obligation” (forbidden during reorganization), an accusation that was met with a claim that it was part of an earlier deal and intended for salaries, not taxes? The unknown identity of the “investors” willing to drop €500m on Saab? The fact that these investors, not Youngman, will control the brand (in order to keep GM happy)? The fact that US dealerships aren’t selling the cars they have, making a production restart largely pointless? In any case Holmqvist admits that his group stands to lose “a lot of money” if Saab goes bankrupt and is willing to back any plan (reality, it seems, notwithstanding).

The 16th was supposed to be the day that decided Saab’s fate, but the brand has been given another weekend to get the mysterious Chinese money into its accounts. A hearing is now scheduled for Monday, at which point cash (likely upwards of $60m) must be on-hand. An optimistic new administrator, and desperately credulous suppliers mean nothing if November and December salaries aren’t paid by then and the tax man is left wanting. Muller and his rotating cast of supporting characters are good at buying a week here and a weekend there, but that can’t go on forever. And the real tragedy is that all these delays have only made it more likely that Saab will die on the week before Christmas.

Yesterday was a very tumultuous day in a tumultuous year at Saab. As it has become customary, the hectic became strongest when money was due. On Monday, payroll and social security taxes had to be paid in Sweden, and the government wants to see cash, not idle promises. That’s what created rumors of bankruptcy. It also caused Martin Larsson to step down from the board, in an apparent attempt to avoid liability.

Later in the day, the red knight from China rode to the rescue:  The mysterious €3.3 million are now allegedly on their way from China, honestly now. Sweden’s Dagens Industri heard “from an industry source” that  the money is now coming, to be used to pay the taxes. According to DI, “The money from Youngman had already been paid on Friday, but was stuck in the Chinese banking system and was therefore delayed.”

We had told you that you better have all your paperwork ready to expedite a bank wire from China.Converted to dollars, €3.3 million are $4.35 million. At DI, that money turned into “5 miljoner dollar, cirka 34 miljoner kronor” ($5 million, approximately 34 million Swedish crowns). Saab either received a super rate, or it’s a whale of a rounding error.

A total of $43 million has been promised to Saab. Let’s see whether it arrives. Money from Youngman has a history of suddenly getting lost in transfer.

Will it help? The usually well-informed and level-headed Sveriges Radio does not think so. It makes a quick and sobering calculation:

“The tax authority wants 34 million [SEK, $4.95 million] now and 180 million [SEK, $26.2 million] later. Payroll is 100 million [SEK, $14.6 million] a month, that’s for November and December will probably paid as well.”

There are $60 million on the back of that envelope, and it is probably just scratching the surface. All for doing nothing and for paying a workforce that has been mostly been staying at home since April. Talk about a money destruction machine, all in the name of keeping a zombie Saab officially alive.  If Saab dies, the IP will go back to GM, and the brand will go back to Saab AB. Keeping it alive has not kept GM from refusing to agree to a sale of its IP to China.  The brand alone is worth nothing in China, and a Saab without the technology is worth nothing the world over.

In a word, it’s a mess. No wonder that Odd Swartling, Chairman of Sweden’s Bankruptcy Trustees Board, interviewed by Sveriges Radio says:

“ I don’t think anyone has seen anything like that. But the likelihood that the company will manage to survive is very low.”

 Saab hasn’t made money as long as I can remember, despite massive infusions of capital and technology from GM. It is easy to dismiss GM as someone who doesn’t know what they are doing, but you don’t become the world’s largest automaker by being stupid.  What Saab needs to have a fighting chance is more than a few billion dollars, and a large automaker with the scale and know-how to make this work. That little busmaker Youngman in China has and is neither. Just look at the hash they made out of Lotus.

I doubt that Victor Muller ever wanted to lead Saab back to its former glory. He is a turn-around artist who buys companies that “need TLC”, he pretties them up and sells them for a quick Euro. With money from dubious sources who are out on bail in London, he most likely wanted to do the same with Saab. It worked for a towing company and a fashion house. The car business is the toughest business on earth. It eats amateurs alive.

Whether the near-dead will be kept on the drip will be decided on Thursday when the court in Vänersborg convenes. Svenska Dagbladet  thinks that the do not resuscitate order can only be avoided if Youngman puts some $30 million on the table by Thursday, along with a credible long-term plan. Even then, too many people will have to agree to the plan to make it work, says the paper: GM, Sweden’s National Debt Office,  “and the Chinese super-authority NDRC.”

It most likely will never come to that. Svenska Dagbladet sees:

 “A microscopic chance that Youngman actually pays $30 million to continue the court hearing.”  

Trading of Swedish Automobile has been halted in Amsterdam, pending an announcement that never came.

PS: Minutes ago, Sveriges Radio announced: “Saab has received money.” It will go to the taxman. Who tips his hat to the Chinese donor. The employees are being told that efforts to “secure the rest of the funding t required to pay salaries and continue reconstruction” are underway.

Swedens’ Dagens Industri has it from “several independent sources” that Victor Muller is ready to throw in the towel, and that Saab-owner Swedish Automobile NV will declare bankruptcy this afternoon at the court in Vänersborg. Dagens Industri has not reached Muller.

The usually well informed Sveriges Radio asked around and found nobody who could corroborate the story. SR found a few that say that nothing is in the bush.

One source told Sveriges Radio:

“It is not true at the moment. It depends on whether the Chinese are paying or not.”

Which brings us back to the mysterious transfer slip.

Asking around in China was likewise unproductive.  A “do you understand what’s going on at Saab?” was always answered with a “No, do you?”

Saabsunited breaks its self-imposed silent period (that didn’t last long), likewise cannot confirm the nasty rumors spread by the nasty Dagens Industri, but as a precaution says the fat lady in the dressing room is actually Twiggy:

“But even if it were to be true, please keep in mind that it is in no way the end of Saab. Several companies have risen out of bankruptcy and are today very successful! Lets wait and see what happens!”

December 16 is the day Saab’s fate will be decided. Court appointed administrator Guy Lofalk, who yesterday was ready to pull the plug, pulled it today. Currently, Saab is under creditor protection. However, Lofalk asked the Vänersborg District Court to lift the protection, opening the door to final bankruptcy. In a statement cited by Reuters, Lofalk said:

“Since the required funding has not been received and the stated schedule not been kept, the (Saab) companies lack the ability to pay upcoming liabilities.”

Lofalk also named General Motors’ unwillingness to approve proposed deals. GM had driven what looks like the final nail in the coffin, by denying the deal that was proposed a few days ago:

“We have reviewed Saab’s proposed changes regarding the sale of the company. Nothing in the proposal changes GM’s position. We are unable to support the transaction.”

GM appears to be unwilling to support any sale involving its technology, and without that technology, Saab is worthless. The proposed investors, including a Russian banker who had his banks taken away and who is out on bail, an alleged hedge fund of doubtful pedigree, and a Chinese busmaker, did not install much confidence.

The court in Sweden gave Saab and its creditors until December 15 to submit their opinions. A day after, the court will render a decision. Says Reuters:

“Ending protection from creditors would open the way for them to file for Saab’s bankruptcy. The court already has one claim, which is under suspension.”

Even at Saabsunited, the last bastion of optimism, the moral is sinking:

“Hope for the best, prepare for the worst.”

Automotive News China [sub] reports that “Saab Automobile AB is holding discussions with China’s Zhejiang Youngman Lotus Automobile and a Chinese bank over borrowing about 600 million euros (5 billion yuan) over two years.”

The source of that news is Victor Muller. Basically, what he is proposing is that instead of buying stock, the investment will be made as a loan, most likely secured by what is left of Saab. Good luck with that.

If Saab defaults on the loan, the lender would end up with a Saab shouldered with humongous legacy costs, and with no technology from GM.

Muller told Bloomberg he would need the loan in a “very few days” to avert bankruptcy.

In a very few days? A loan? From China? Is that Muller’s way to say: “It’s over?”

Saab’s supposed saviors in China have not sent any money (not that this is surprising). Saab’s other savior Vladimir Antonov is out on bail, had to surrender his passport and report with the coppers in West London three times a week. Which adds new revs on Saab swirling down the drain.

Saab reports that it’s UK unit Saab Great Britain Ltd (Saab GB) “filed for administration with the High Court in London today.” Administration is the UK version of bankruptcy. The court appoints an administrator, which takes n the management powers of the directors.

Saab says the Chinese are to blame:

“Swan received a conditional funding commitment from Youngman for the payment of the wages of the employees of Saab Automobile and for the continuation of the activities of Saab GB. Saab Automobile and Saab GB have not yet received this funding.”

Meanwhile in Trollhättan, salaries have not been paid. The unions are preparing the required demand notice, and if that triggers no money, the unions will file for bankruptcy. Just Auto says:

“Saab unions, suppliers and Swedish tax representatives are to meet the automaker at 17:00 today [Sweden, 29 November) in the manufacturer’s home city of Trollhattan as crisis talks to rescue the company appear on a knife edge.”

GM sources which requested anonymity, citing possible legal implications, mentioned to TTAC that the attacks have “all signs of a coordinated campaign.” That is putting it mildly.

Responsibility as initiators of the campaign was assumed on November 11 by an Italian splinter group named Saabway Club.

On November 16, Saabsunited, the fanzine for the zombie brand, reported that “the on-line Saab community have started one action to let GM know that we are still alive and here.” Then, the fanzine  could not help it and sent out a call to action to the Saab faithful: “Time to act?”

Yesterday, former Saabsunited-owner-turned-Saab-PR-flack Steven Wade decided to say to hell with the timid question marks, he broke cover and published on the official inside.saab website what can only be read as endorsement and encouragement of the virtual occupation:

“I want to acknowledge this fan-based movement, started and sustained by Saab enthusiasts on Facebook, using the social media tools freely available to them and everyone who uses the site. We have observed the movement and I want you to know that as always, your faith in our products and your desire to see Saab successful is a great morale boost for all who work with Saab.”

In a rather clumsy CYA attempt, Wade (and Saab) urge Saab fans to conduct the occupation “with respect and dignity.”

What represents respect and dignity is not defined. However, Wade and Saab say that “99.9% of people” have shown such respect and dignity during the occupation, and “there will always be one or two, however, who get a little too enthusiastic in getting their point across.” The reader remains without information of where the limit is and who the one or two that overstepped the boundaries may have been. 99.9 percent of the occupiers of GM’s site received a wholesale thumbs up from Saab.

We can safely assume that the call for respect and dignity is a throwaway statement, and that Saab’s on-line spokesperson and all-around hero of the true believers encourages the Saabinistas to continue the siege of GM’s Facebook site.

What we see here is perfect proof that Saab has fallen in the hands of rank amateurs, from Victor Muller down to its chubby wannabe flack from down-under. The true art of flackery often is practiced in what you don’t say.

In this case, if you are Saab, you want to look the other way and act as if you have seen nothing. If someone asks you, you say that as a matter of policy, you don’t comment on other carmakers. Only if you want to commit public relations suicide, you express sympathy and support for the squatters. And only if you are absolutely delirious or had too much Absolut, you sit down and demonstrate that sympathy and support in an official company blog.

With Vladimir Antonov accused of raping two of his banks and funneling funds to Saab, with salaries unpaid again, with unions most likely on their way to bankruptcy court on Monday, with no more money from China, Saab requires all the friends it can get. What it needs most is GM. GM can block any sale of Saab. Saab needs to remain in GM’s good graces.

Saab needs to be careful in what it wishes for. GM could act favorably to the “Let Saab go” demands and indeed will let Saab go.

To hell.

P.S.: The Italian initiators of the campaign took note of the official recognition, and vowed to continue the jihad with the required respect and dignity.