Dreams have burst for Rachel Pang. The illusion of a global premium brand under Chinese custody is a thing of the past. It was not a surprise! The reputation of Youngman was ruined in Sweden in December, the relationship of trust reached a zero point. How could the strategy of the Chinese fail so grandly?
The start was promising and it seemed like a love wedding. The chemistry between Muller and Rachel Pang seemed to be right. One wrote SMS, was trusting. The NDRC signaled benevolence from the Beijing ivory tower. But Muller spurned the bride and bandaged with new partners. Hawtai was suddenly the favorite, and the Saab CEO had thus found another building block for his final failure.
From now on, the mood was characterized by distrust. At the super bureaucracy in Beijing, the warning lights went on, Saab was considered unreliable. After they had found together again, this time with partner Pang Da, it seemed to go further. But who had hoped for a quick decision, which was increasingly disappointed.
The negotiations were tough, both parties seemed to be looking at. The situation at Saab worsened rapidly, the production was no longer running. With ever new money transfers, the group was once saved from destruction. After the departure of Pang Da Youngman was then the last silk thread, which should turn out to be too little resilient.
In this situation, the weaknesses of a state-controlled economy came to light. Publicly, the NDRC Lotus-Youngman called for caution. The Chinese reacted and transferred only the necessary amounts. Saab was finally on the short lead of the investors, there was no room left. A much needed financial buffer did not exist.
The consequences were fatal. Not just for the image, that in the 2. Half 2011 was more and more battered. The employees also felt the consequences. Due to the bureaucratic process in Beijing all funds arrived late. Salaries could not be paid on time, the company was no longer months out of the negative headlines. In the Saab management frustration and anger grew over the partner. In Sweden Youngman was henceforth considered unreliable. A flaw that still clings to today.
The last transfer before the bankruptcy filing in December was not released by the NDRC because GM finally refused to approve the technology licenses. In a dramatic nighttime session came the end. Thus, the way for Victor Muller to Vänersborg was mandatory. Saab under Spyker's leadership was at the end. At the same time also Youngman.
The reputation in Sweden was ruined and if the Chinese had only halfway understood the European mentality, then any commitment would have expired at this point. Back home, write off losses, heal wounds. Instead, they went on the offensive. Interviews were given at train stations announcing that cheap cars would roll off the production lines in Trollhättan in the future. Every former Saab official, representative of a proud company, heard these words with horror.
Had Pang Quingnian even halfway reflected the pride of the Swedes on their brand, he would never have said those words. He just did not understand. Money is in some people's eyes synonymous with power. Who knows the NDRC behind, has an almost unlimited Dispo. A lot of money, so much power? Everything for sale?
Pang Quingnian and his daughter did not understand the European way of thinking. Neureich meets impoverished nobility. Money is not everything in life, it is mostly just printed paper. The administrators have the ability to listen very well. They took the time to listen to former management and other Saab representatives. They tied and bind Saab officials into the ongoing process, asking for advice. In the end, there was only one decision. The end for Lotus Youngman.
A state-controlled bureaucracy seems to guarantee security. But only at first glance. There is a lot of risk in the case of China. What if the Politburo decides to pull out of the automotive industry and zero all foreign investment? In the case of Youngman it should have been like that. The NDRC is no longer interested in the car industry in Sweden, and more focused on the environmental industry, is heard from Beijing.
A lame excuse for a battle of retreat to save face. Saab, Sweden - Youngman and China don't go together. The final favorite for the Swedes and the community comes from India. It should be a little gracious in some financial details. So you can hear. The administrators are now playing the card of a participating consortium to keep the pressure going. So far they are playing your game quite well. Chapeau!