#sweden

Foreign suppliers could produce the final nail in the coffin of struggling Saab, the head of a European supplier association fears. “I think that the patience has more or less run out,” Lars Holmqvist, CEO of CLEPA, the European Association of Automotive Suppliers, said to Swedish news agency TT [via The Local]

Foreign suppliers “probably have less feeling for Saab than many Swedish companies which have grown up with Saab in a different way. Many also have a personal connection to Saab because they might have driven one at some point in their life. But the foreign suppliers are tougher,” Holmqvist, himself a Swede, told TT.

“Based on the information we have, it looks like we will start up production tomorrow,” Saab spokeswoman Gunilla Gustavs told Reuters today. That’s called a double hedge in the propaganda business.

But based on the information TTAC has, it looks like production will indeed take place on Friday. On Friday, an important visitor will come to Trollhättan: Pangda Chief Executive Pang Qinghua, with entourage. Today, Pang is in Stockholm for a chit-chat with Enterprise Minister Maud Olofsson and the Swedish debt office. Their goodwill is needed to admit Pangda as an investor in Saab. And the Minister has a busy schedule …

Supposedly, the idea of the Saab / Pangda deal was to skirt requirements to obtain Chinese government approval. As we have explained on the day the MoU (as Muller sees it) or contract (as Pangda sees it) was signed, it would be most silly to try to get around the Chinese government. They have a whole array of measures to demonstrate their displeasure if they don’t like a deal.

If ChinaCarTimes is correctly informed, the paperwork was barely dry and the Chinese government already made its annoyance felt. According to a CCT report, the Chinese government issued a warning to Pangda. The story is written in Chinglish, but this is what it seems to be saying:

As expected, troubled Saab has been thrown a lifeline by China’s Hawtai. Spyker announced today that its Swedish unit Saab has secured €150 million ($222.5 million) in funding from Hawtai. The Chinese company will be able to produce and sell Saab cars in China.

Hawtai will invest €120 million for a 29.9 percent stake in Spyker and provide a €30 million ($44.6 million) convertible loan to Saab. If the convert is exercised (which is pretty much a given – it matures in 6 months with a 7 percent interest rate) it converts at €4.88 a share, says the Wall Street Journal.

Saab will either be owned by Russians or Chinese. That’s the way it looks today. Which is no guarantee that it will look the same on Monday.

So Saab had called an all hands meeting for today. 3,700 employees attended with great expectations or knots in their stomachs. This could have been the first day of a great future or the last of Saab. Instead ….

Today, 3,700 employees of Saab received an invitation to come to an all hands meeting tomorrow, Wednesday. It will be a break from the doldrums. In Trollhättan, the lines have been down for three weeks now because Saab has no money to pay parts suppliers, reports Automobilwoche [sub]. Tuesday ended in Sweden without a solution. Suppliers, unions and Swedish politicians demand immediate action, or Saab will go down the drain.

Talk about a Chinese savior has died down. All hopes hinge on Vladimir Antonov, and the sale of the factory to the Russian, well, business man. The problem is: The real estate is collateral for a loan from the European Investment Bank (EIB). Saab told Automobilwoche that the sale is “no sure” due to harsh demands by the EIB.

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.

While other manufacturers have problems getting parts, Saab has problems getting parts. But for different reasons.

“Production at Saab stopped for a second day on Wednesday as the money-losing automaker faces payment problems with its suppliers,” reports Automotive News [sub]. They add that Saab said it will start production again on Thursday, after money problems have been settled. According to the Automotive News report, Saab made a very inadvisable move: They did not pay their shipping company.

Except for the faithful at Saabsunited.com, there aren’t too many left who are convinced of Saab’s success. Now, there is one less. Dubbed as “the last Swede,” Saab’s CEO Jan Ake Jonsson handed in his resignation after leading the company through what must have been six very stressful years.

The Volvo 740 was a rolling pile of boredom for most folks. A typical midsized sedan that was a bit heavy, a bit underpowered, very safe, and downright spartan in base form. Where’s the fun in all that? Well it depends on where you drive it. Take this video and marvel in a car that could drift like a 240SX given the right combination of snow, skinny snow tires, and a driver that could have easily passed for the stig’s Swedish sister . If there is anything that can get me into my 1993 Volvo 940 (the 740’s twin brother), it would be a video like this. How about you? Any video flights of fancy that remind you of the greatness that is your daily driver?

Remember the 4 “dead brands” walking? Pontiac, Saturn, Hummer and Saab? Seems like a long time ago. Who’d have thought Saab would be the last brand standing? Arguably, the one of the weakest brands of them all. At least Hummer and Saturn had genuine interest. But Saab found a Dutch white knight (a white knight with a 3 legged horse and a rusty sword), in Spyker and survived. It really started heads scratching as to how a damaged brand and a never profitable car maker could survive in an industry where size is king. But it seems the Dutch-Swedish venture may be getting some help from an unlikely source.

Volvo, now in the hands of China’s Geely, may revolutionize the way electric and hybrid cars are built. Currently, you have to shove a big honking battery into an electric car, and a simple honking battery into a hybrid. This adds weight, and obesity is a killer when in come to mileage. Volvo, working with the Imperial College in London has a wild idea: Why not dispense with the big honking battery and use the whole auto body to store electricity. Say what?

The government of Sweden’s Västra Götaland County has referred Saab to the Swedish Enforcement Service (Kronofogdemyndigheten) over nonpayment of a $16.2m loan, reports thelocal.se. The bill is for repayment of a portion of a roughly $45m in aid extended by the county to Saab during its first weeks of bankruptcy. Because the $16.2m portion was used specifically to guarantee employee salaries, the County is arguing that it is not covered by Saab’s 75% writedown agreement with creditors. Saab insists that the salary guarantee portion is covered by the cramdown, and says it has paid its 25 percent of the total loan.

With the Volvo sale from Ford to Geely finally closed and consummated, Geely is losing no time, both in Sweden and in China.

In Sweden, Geely will “pursue investment opportunities” (read: buy other companies in part or in whole), reports Gasgoo, citing sources from the Ministry of Commerce (MOFCOM). When MOFCOM gets involved, then we are talking sizeable deals. According to the report, Geely intends to cooperate with Swedish companies in several sectors, including green cars, alternative fuels, and hybrid technology. Stefan Ostling, an auto project manager from Invest Sweden, says that Geely has already completed tie-ups with Swedish auto technology consulting firms like Semcon and HiQ through equity participation and acquisitions.