Victor Muller Plays Maharajah While Suppliers Go Belly-Up
Whenever we report about the machinations around Saab, the faithful remind us that there are real people affected. They are right. Some of the real people work for IAC for instance, one of Saab’s largest suppliers. Half of the production of its factory in Färgelanda went to Saab.IAC Sweden could be bankrupt in a few weeks because they don’t’ have the money to pay a 95 million kronor ($ 14.8 million) tax bill, Sweden’s Göteborg Posten reports.
IAC was one of the companies that agreed to a deal with Saab in May and started to deliver dashboards and door trim panels again. Today, they wish they had not. Saab is said to owe IAC 73 million kronor, or some $11.4 million. That would go a long way towards settling the tax bill. When IAC, with their back to the wall, had agreed to the deal in May, they were feted by Saabsunited as heroes. Now, the company turns into a sideshow. Back in May, IAC had to let 200 people go, while Saab workers sat at home, collecting full salaries for doing nothing.
If IAC’s tax bill is not settled by September 19th, the Swedish enforcement agency Kronofogden will come knocking , looking for assets that can be attached. “If they are unsuccessful, the tax office can request to take IAC bankrupt,” writes the Göteborg Posten.
All of this does not seem to worry Victor Muller too much. “Concerned about the impending demise of Saab? Apparently not for the top boss,” wrote the Dutch business newspaper Financieele Dagblad. “Victor Muller cruised along the small lanes in the Red Cross Rally in a giant yellow antique Rolls Royce once used by an Indian maharaja for tiger hunting.”
“You’d think that in such a time Muller has something else on his mind than a silly ride through the beautiful countryside,” said a fellow CEO of a large Dutch company.
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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One apparent reason, not mentioned in the press release, why Wilber Ross recently slammed the brakes on his plan to take IAC into an IPO. The remainder of this IAC plant's production pretty much goes to VCC.
So, if SAAB owes them 76% of their tax bill, there must be others who owe them, too. Otherwise, Swedish company taxes must amount to 130% of your cash flow. Which is not to say that SAAB has any right not to pay suppliers, to be clear. Oh, and as for the yellow press: Did anyone read about Victor Muller inviting Kate and Andrew out for dinner in Ascot - with SAAB money he took out of the cash-deck, when no one was watching?