Saab's Future Looks Bleak

[William Maley]

Saab's Future Looks Bleak

William Maley - Editor/Reporter - CheersandGears.com

April 29, 2011

Good news has been eluding Saab over the past month. Production problems, issues with suppliers, and money problems shows why Saab wants to forget this month. Now, Saab is reporting more bad news. In a statement released today, Saab reported a first quarter net loss of 72 million Euros ($107 million). Also, Saab said they would not be able to meet their production forecasts for 2011.

"It is unclear at this time what the consequences of the recent production stoppages and funding issues will be for our full year 2011 forecast but it is realistic to assume that realizing our 80.000 cars sales forecast is no longer feasible," said CEO Victor Muller in a statement.

However, some good news is coming to Saab. Earlier this week, Russian businessman Vladimir Antonov was given the go ahead by the Swedish Government and General Motors to invest approximately 30 million euros, in return for a 29.9 percent stake in Saab.

To help raise more money, Saab is looking to Chinese auto manufacturers.

"We have opened up alternative routes to fund the company mid and short term including, but not limited to, discussions with Chinese car manufacturers," said Muller.

Muller didn't say which Chinese auto makers they're in talks with, but rumors point to China Youngman Automobile Group, Great Wall Motor Co and Jiangsu Yueda Group. If a deal is created with one of these automakers, that gives Saab an entrance into the world's largest auto market.

Saab is even asking their shareholders to give funds to help restart vehicle production.

"To ensure adequate liquidity both in the short term and for the remainder of this year, management is currently raising funds from current shareholders and pursuing various initiatives to improve the group's liquidity and strengthen the group's balance sheet," Saab said in a statement.

Update: Saab Secures 59.1€ million in short term financing

Source: Automotive News Europe (Subscription Required)

[§carlet §wordfish]

Noooo they're so close to making a great comeback!

[daves87rs]

Let's hope they hang on...

[ocnblu]

Sawr a new pearl white 9-5 yesterday, a beautiful car. I hope they can continue.

[ZL-1]

SAAB needed an ultra-conservative financial structure. Looking a the consilidated accounts, they don't have one (quite the opposite, actually). I think SAAB actually had an opportunity during this year to work on that aspect, an opportunity that was clearly missed. This time around, I don't have much hope for SAAB. Perhaps BAIC will pick up SAAB's engineering skills for a handful of SEKs.

[David]

SAAB is a DEAD Company and does not know it. This time next year, I would be surprised if it still exists. Time for the on going consolidation of the auto industry and for lack luster companies like SAAB to go away. This is as much the world economy as GM's poor mgmt of SAAB to blame, but time to let it go into the sunset and mark it as another historical note. The world economy does not need SAAB.

[A Horse With No Name]

Sawr a new pearl white 9-5 yesterday, a beautiful car. I hope they can continue.

I hope so too...neat car...but the future is rather worrisome....

SAAB is a DEAD Company and does not know it. This time next year, I would be surprised if it still exists. Time for the on going consolidation of the auto industry and for lack luster companies like SAAB to go away. This is as much the world economy as GM's poor mgmt of SAAB to blame, but time to let it go into the sunset and mark it as another historical note. The world economy does not need SAAB.

Sad but probably true, my friend...

[Croc]

World financial collapse, Japan earthquake, absent parent company...when is SAAB ever going to get a break?? I LOVE their new lineup.

[Paolino]

I saw a black one the other day and it was so refreshing because it didn't look like a typical car. I'd love to see Saab take off but they seem to be plagued by so many problems. Hopefully the quality of the newer ones is better than my friends from 5 or so years ago. That was a disaster.

[balthazar]

poor quality... long-dated, no-progress design... FWD.... stoic lineup... it's never been a high-end product or stood out from the crowd.

saab's heyday was 25 years ago; they've been treading water ever since.

[SAmadei]

SAAB is a DEAD Company and does not know it. This time next year, I would be surprised if it still exists. Time for the on going consolidation of the auto industry and for lack luster companies like SAAB to go away. This is as much the world economy as GM's poor mgmt of SAAB to blame, but time to let it go into the sunset and mark it as another historical note. The world economy does not need SAAB.

I mostly agree, however, I feel its a bad thing for the Scandinavian auto industry, and the Swedes really should try somewhat to save it. Letting historic auto companies disappear and just quoting it as a victim of ongoing auto consolidation will likely eventually leave us with a new "Big 3 (left)"... Chery, Tata and Hyundai.

It would be interesting to see exactly how screwed internally Saab is.

Don't get me wrong, the ways things are going, China is likely the only saving grace for Saab... but then again, the Chinese will likely own GM someday, anyway, so we better get used to it.

[regfootball]

what Saab and Volvo really need is to be aligned with a giant, and they also need to find some markets where they are a major player.

I think for the sake of the scandinavians, they should really devise a plan that would allow Saab and Volvo unique vehicle offerings and begin on a path to shared tech and platforms. And perhaps the russians and chinese are best equipped at this point to be the money people.

Maybe GM owning them was the best thing for them........maybe GM should buy them back......

[smk4565]

Saab is dead. No volume, the lineup is small, they had dated cars for a while. Saab has been dying on the vine for years, the time has come, just close it down already, I don't get why people try to save something that can't be saved, and no one will miss Saab when it is gone.

[loki]

agree with dfelt. it will be sad to see another name die, but it's not unprecedented, so don't worry. while this correction happens (and is postponed by certain things)things will change, alot.