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Discussion Starter · #1 ·
I can't pretend to understand what is going on here .. but I don't like the sound of it .. smells fishy to me for the beginning of the new Saab. :confused:


Spyker withdraws funds from Saab offshoot
Published: 20 Apr 10 10:35 CET Online: http://www.thelocal.se/26176/20100420/


Dutch firm Spyker has declared its intention to cover its losses by taking funds from Saab GB, arguing that the firm is not a Saab subsidiary but an independent company bought from US General Motors.

Spyker is not taking any money from Saab, this is an independent company which we are buying from GM," said Saab Automobile chairperson and Spyker CEO Victor Muller on Monday.

Spyker Cars is leaking money, with the niche sports carmaker reporting a loss of 220 million kronor ($30 million) in 2009, three times the value of its sales.

To cover its massive losses, the firm now wants to create a so-called cash pool with the British distribution firm Saab GB, enabling Spyker to borrow money for its business, according to a TV4 report.

The detail was included in a footnote in Spyker Cars annual accounts.

"We are not hiding anything. It is clearly stated in our financial statement," Muller told news agency TT.

Saab GB is currently owned by US General Motors (GM) and is set to be acquired by Spyker Cars for the sum of £1 ($1.5).

"We don't see anything strange in this. We have said all along that no money will move from Saab to Spyker Cars. And it does not in this case either. Saab GB is a completely independent firm which Saab does not own," Victor Muller said.

Spyker Cars has until July 15th to hand over the outstanding 175 million kronor to GM to complete the purchase of Saab. Swedish rules prohibit buying a firm with its own cash and Muller argues that the latest move is not in breach of these regulations.

But Lennart Ihredal of the professional institute for authorized public accountants (FAR) said the set-up could test the limits of what is acceptable.

"You would then have to look at the regulations in place in the various countries. But in an acquisition such as this I would have it on the check list, so that you don't breach any regulations," Ihredal told TV4.
 

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Discussion Starter · #2 · (Edited)
I am really surprised that this has been "viewed" 61 times but not one comment !!
Am I the only one who finds this news disturbing ... and concerned for the future of Saab.
 

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I am really surprised that this has been "viewed" 61 times but not one comment !!
Am I the only one who finds this news disturbing ... and concerned for the future of Saab.
I read an article the other day talking about how GM's strategy was to have the business unit that manufactures Saab "sell" the car at nearly cost to the business units that sell the car, in that case it was the North American Sales organization. That was an accounting trick would allow the profits to be realized in places that had a lower tax burden that in Sweden.

I would assume that this is correcting the same type of situation where Spyker is correcting GM's accounting shenanigans.
 

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Pre the GM takeover, Saab Scania owned 100% Saab Car Division; who owned 100% of the wholesale distribution subsidiaries in what were judged to be the important markets (France, Switzerland, Italy, Germany, Sweden, Norway, Finland, Denmark, US, GB, Canada, Australia). Markets judged to be less important were handled by private importers.

Saab GB was one of these wholesale distribution subsidiaries.

Saab GB (and some other subs) had their own 100% subsidiaries in the form of flagship retail outlets. Although many were the subject of management buy outs Saab City still survives.

The Saab GB change of ownership from Saab Automobile AB (successor to Saab Car Division) to Spyker is curious. Even more curious is that Saab GB has cash that has not been repatriated.

Peter
 

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After more research, questions remain.

The Swedish press are querying the role of Spyker.

Spyker Cars has never made a profit and lost around $30m in 2009 on sales estimated at $10m.

Spyker will withdraw the funds from Saab GB (the UK Saab wholesale distribution company formerly owned 100% by Saab Automobile), arguing that Saab GB is not a Saab subsidiary but an independent company bought from US General Motors.

"Spyker is not taking any money from Saab, this is an independent company which we are buying from GM," said Saab Automobile chairperson and Spyker CEO Victor Muller.

"We are not hiding anything. It is clearly stated in our financial statement," Muller told news agency TT.

Saab GB is currently owned by US General Motors (GM) and is set to be acquired by Spyker Cars for the sum of £1 ($1.5).

"We don't see anything strange in this. We have said all along that no money will move from Saab to Spyker Cars. And it does not in this case either. Saab GB is a completely independent firm which Saab does not own," Victor Muller said.

Spyker Cars has until July 15th to hand over the outstanding 175 million kronor ( $24m) to GM to complete the purchase of Saab. Swedish rules prohibit buying a firm with its own cash and Muller argues that the latest move is not in breach of these regulations.

At the time of the takeover, the 31 Dec 2009 balance sheets of Saab Automobile and Saab GB were consolidated, whereas the Spyker results were not available.


Quote from the joint Saab AB - Spyker press release of 26 Jan 2010 :

"Both Saab management and Saab GB management prepared an estimated balance sheet as at 31 December 2009 for the purpose of this transaction. These estimated balance sheets are still subject to final account closing and audit procedures.
• Spyker Cars does not yet have a balance sheet as at 31 December 2009 ready for reporting purposes. As such, it would be premature to show a pro-forma combined balance sheet for Spyker, Saab and Saab GB as at 31 December 2009.
• Therefore Spyker only disclose an indicative combined balance sheet of Saab and Saab GB as at Closing date based on the estimated balance sheets for both entities as at 31 December 2009, adjusted for the impact of the transaction items as at Closing date"

I guess the questions that need to be asked are :

Why consolidate the accounts of Saab GB and Saab Automobile if "Saab GB is a completely independent firm" ?

Without the availability of $30m from Saab GB, how would Spyker have paid the final $24m tranche to GM ?


Peter


Further information :

http://www.thelocal.se/26176/20100420
http://www.saabcentral.com/forums/showthread.php?t=182416
http://www.saabsunited.com/2010/04/the-saab-gb-issue---my-view-in-english.html
http://www.spykercars.com/download/investor/statement_SAAB_jan_26_final.pdf
 

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Take this with a large helping of salt. But I had my battery die today, and a roadside tech from the dealership (not a contract person), came out, and we were talking a bit about the spyker aquisition. He said that the big concern at the dealerships right now is how many of the spyker supercars they are going to have to buy. IIRC he said that as it stands now, each dealership is going to be forced to purchase/keep in inventory 2 spyker cars if they want to sell saabs. He seemed to feel that spyker is more concerned with getting a large distribution network for their "supercars" more than they are with the actual saab cars.

While I think there is hope, especially if they rebrand their spyker supercars saabs, I just wonder how spyker plans to make this whole thing work. There was an interesting interview with a guy from spyker with adam corolla on his podcast, and I remember the guy saying they sold under 100 of their cars worldwide last year. Pretty big jump to go from managing a boutique car company to a large brand.
 

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Some more about this ............

Spyker Cars has never made a profit and lost around $30m in 2009 on sales estimated at $10m.

Spyker will withdraw the funds from Saab GB (the UK Saab wholesale distribution company formerly owned 100% by Saab Automobile), arguing that Saab GB is not a Saab subsidiary but an independent company bought from US General Motors.

"Spyker is not taking any money from Saab, this is an independent company which we are buying from GM," said Saab Automobile chairperson and Spyker CEO Victor Muller.

"We are not hiding anything. It is clearly stated in our financial statement," Muller told news agency TT.

Saab GB is currently owned by US General Motors (GM) and is set to be acquired by Spyker Cars for the sum of £1 ($1.5).

"We don't see anything strange in this. We have said all along that no money will move from Saab to Spyker Cars. And it does not in this case either. Saab GB is a completely independent firm which Saab does not own," Victor Muller said.

Spyker Cars has until July 15th to hand over the outstanding 175 million kronor ( $24m) to GM to complete the purchase of Saab. Swedish rules prohibit buying a firm with its own cash and Muller argues that the latest move is not in breach of these regulations.

At the time of the takeover, the 31 Dec 2009 balance sheets of Saab Automobile and Saab GB were consolidated, whereas the Spyker results were not available.


Quote from the joint Saab AB - Spyker press release of 26 Jan 2010 :

"Both Saab management and Saab GB management prepared an estimated balance sheet as
at 31 December 2009 for the purpose of this transaction. These estimated balance sheets are still subject to final account closing and audit procedures.
• Spyker Cars does not yet have a balance sheet as at 31 December 2009 ready for reporting purposes. As such, it would be premature to show a pro-forma combined balance sheet for Spyker, Saab and Saab GB as at 31 December 2009.
• Therefore Spyker only disclose an indicative combined balance sheet of Saab and Saab GB as at Closing date based on the estimated balance sheets for both entities as at 31 December 2009, adjusted for the impact of the transaction items as at Closing date"

I guess the questions that need to be asked are :

Why consolidate the accounts of Saab GB and Saab Automobile if "Saab GB is a completely independent firm" ?

Without the availability of $30m from Saab GB, how would Spyker have paid the final $24m tranche to GM ?

Peter


Further information :

http://www.thelocal.se/26176/20100420
http://www.saabcentral.com/forums/showthread.php?t=182416
http://www.saabsunited.com/2010/04/the-saab-gb-issue---my-view-in-english.html
http://www.spykercars.com/download/investor/statement_SAAB_jan_26_final.pdf
 

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The Saab GB change of ownership from Saab Automobile AB (successor to Saab Car Division) to Spyker is curious. Even more curious is that Saab GB has cash that has not been repatriated.

Peter
from what i understand, saab great britain was/is a seperate company created by general motors, it has never been part of saab AB.

doug, thats a rather worrying story (even when taken with a pinch of salt)! :eek:
 

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Discussion Starter · #11 ·
Doug, I also am very concerned by what you are saying and the enforced presence of the outspoken Russian "banker" Anatolov troubles me.
What worries me is where will this leave Saab in the long term ..
We are all smiling today .. but later, I don't know.
Hoping that I am being overly pessimistic but ..
 

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from what i understand, saab great britain was/is a seperate company created by general motors, it has never been part of saab AB.
Saab Great Britain was formed in 1963, replacing the original independent regional distributors.

The special edition Saab 900 Tjugofem was to celebrate the first 25 years of Saab Great Britain Limited.

Friends Reunited lists employees from the 1970's here : http://www.friendsreunited.co.uk/SignedIn/WorkGroup.aspx?work_key=6021012

Peter
 

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IIRC he said that as it stands now, each dealership is going to be forced to purchase/keep in inventory 2 spyker cars if they want to sell saabs. He seemed to feel that spyker is more concerned with getting a large distribution network for their "supercars" more than they are with the actual saab cars.
That is obviously not true. There are 1100 saab dealers, that would be 2200 Spykers. 22 years of production? Victor Muller told me that IF they wanted to integrate the Spyker dealer network with Saab's, only 10% of the dealers would actually be able to sell Spykers. There would just be no available market for the other 90%.
 

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What worries me is where will this leave Saab in the long term ..
David,

There WAS no long term anymore. What Victor is doing will be very difficult, and it is possible that it fails. But if it works it will be the rescue of both Spyker and Saab.

Rijk
Spyker Owner #107
 

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Discussion Starter · #16 ·
I suppose that I was naive enough to have thought that Saab HAD been saved .. and not considered the possibility of it still failing :confused:
 

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I suppose that I was naive enough to have thought that Saab HAD been saved .. and not considered the possibility of it still failing :confused:
I'm not thinking about a short term fail. This deal will hold together. But unless Saab will be able to attract a whole new generation of buyers, the old supporting guard will die out.
 

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I'm not thinking about a short term fail. This deal will hold together. But unless Saab will be able to attract a whole new generation of buyers, the old supporting guard will die out.
which is just a matter of releasing new vehicles and advertising properly. The branding is what sells the car.

Under GM's control Saab had no room to "potentially" invade on other brands market share, under Spykers control they can do whatever the heck they want.
 

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Discussion Starter · #20 ·
I agree ^^^^ but showrooms will have been empty for 6 months and a new intelligent publicity campaign is needed.

Forget the "born from jets" and "move your mind" .. they should play on "the brand that a hundred thousand owners wouldn't let die". "The Sports Saloon" built for owners by enthusiasts."

F Spider, I'm glad that you think there will be no short term fail.
I feel confident with the plan for Saab, the new models and that the future owners are there waiting.
Three essentials: Get the cars to the dealers fast. Good advertising campaign and Get the cars to the dealers fast..
 
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