siege

As expected, the first debtors began collecting the outstanding amounts yesterday. The "NEVS-Pengar-Crises" found their way into the press again. A current status, the view of things from the NEVS point of view, was then spread over the usual journalistic channels.

Saab plant Trollhattan © 2014 saabblog.net
Saab plant Trollhattan © 2014 saabblog.net

Which wasn't awkward. To translate it figuratively, NEVS is something like a besieged fortress ... Mahindra and Dongfeng stand in front of the walls. The besiegers think they have a lot of time and wait until they slaughter the horses at NEVS and give up because of hunger. It's about money - NEVS and Saab should be taken over for the lowest possible amount.

A problem that prevented the quick conclusion of the contract should be the unclear rights to the Saab 9-3. In the year 2011, at Spyker times, 50% of the rights to the sedan in Trollhättan, 50% at BAIC. The sports suit has always been owned by GM, the convertible since the facelift. Apparently, the situation is still not resolved to 100%, although the insolvency administrators had brought in a specialist in trademark and patent rights to negotiate the contracts in their ranks. The uncertainty about what you are supposed to buy should be the main reason for not yet selling NEVS.

There is more clarity about trademark rights. Scania AB is out and has no say. The Saab AB is more or less open and relaxed. It may be necessary to renegotiate the sale or entry of a new major shareholder; one does not see a problem here. Such a representative of Saab AB yesterday at a request of the Svenska Dagbladets.

NEVS is bleeding for committed errors. You had the choice up to a certain point. Instead of investing in the China business, there would have been alternatives. Swedish and European customers would have been grateful for new cars, an existing dealer network and a profitable aftersales department had increased goodwill. Or, better yet, all the funds available would have been invested in the development of new products on the Phoenix platform. Then 2015 or 2016 would be a premiere in the house. But there is little point in thinking about mistakes, the situation is as it is!

At the moment, it seems to be stuck, because there is a standstill in poker for NEVS and Saab. In principle, negotiations do not take place. The potential buyers are waiting. Letters of intent have been received from Dongfeng and Mahindra that the final contracts could have been signed in June. While the situation in the besieged NEVS fortress is becoming more and more precarious - one is already considering loaning assets at high interest rates - the other parties believe they still have enough time.

If you are not mistaken! It is obvious that Mahindra wants to keep the price as low as possible. With exactly this strategy you have already lost a foray in the past. The chosen prey was named Jaguar Land Rover. On the home stretch, while Mahindra was busy pushing the price down, a white knight came and won. The name: Tata.

Text & image: tom@saabblog.net

34 thoughts on "siege"

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    although Dongfeng got into Peugeot, here you would at least have engines and Peugeot and Saab do not mind the models

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    how are the besiegers supposed to be able to produce again quickly if there are legal problems even with the 9-3 license, the 9-5 was completely in GM hands, the convertible is based on the 9-3 .......
    Besides, if you have the licenses under control, what about the engine (s)? ++ Neither Dongfeng's truck engines nor Marinda s
    outdated license motors bring nothing

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      I guess I only need to bridge the gap with a 9-3 Sedan (with a new engine + good marketing) and, if necessary, with a product from the new owner - in the case of Mahindra, as mentioned before, I could buy the SsangYong Korando (production for European markets) imagine.

      Mahindra also has modern engines on the shelves, according to press reports.

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    The paint of the proud brand SAAB is now finally off for any potential new customers. No future and pathetic visions.
    Now you ruin even by the back and forth the good old reputation of the brand. Now begins the last act, by wanting to trade our SAABs with high Tacho levels + age somehow against years of construction 2010 / 11. But that will be over soon. The curtain has dropped. Everything deeply sad and no longer bearable. The proud fleet is already sinking.
    Not to mention the state of mind of our dealers. They are also totally in the rain.

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      The “besiegers” are (still) in existence. It is now up to NEVS to put an end to the drama and give up what can no longer be done with its own (financial) strength.

      On the other hand, perhaps you are still trying to get a better bid from other investors - but this should no longer succeed now!

      So what are you waiting for?

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    Always this myth that with better marketing and more sales markets a refreshed 9-3 could have turned things around ... No matter what is always written here. The construction of the 9-3 is a 2003 model, regardless of whether a new engine or other rear lights were installed. Who, apart from a few weirdos (in a positive sense) with pink Saab glasses, will buy an 11-year-old "new car"? No one!
    If it has to be “anti-mainstream”, I'll just add something and buy myself a Volvo with all the modern bells and whistles. The quality is better than newer Saab anyway.

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      The time when Volvo was "anti-mainstream" is probably over for years!

      It remains to be seen whether a refreshed 9-3 with modern technology will not find other buyers besides positive spinners - if a new investor even offers this vehicle to bridge the gap. I would like to try again - but this time with really competent experts in all relevant areas.

      Incidentally, I have heard in terms of quality in terms of quality also completely different statements than your praise for new VOLVO vehicles.

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        I find it strange that some who claim to be able to “think something” cannot make any contradiction in terms of simultaneously positively emphasizing the exclusivity (rarity) of SAAB and then based on it a huge market potential (mass distribution) identify.

        What is it?

        It should also be remembered that most of the SAAB community was firmly convinced that the few hundred 9-3s would be sold faster than NEVS could produce and that there was no need for marketing at all.

        That the sedan was already an overproduction even in such small quantities, you have to accept as fact. If you put off the glasses, you also realize that it did not exist in pink metallic, but (in addition to black) entirely in silver.

        The answer to the probably rhetorical question about the production location ("Why, for example, do well-known Japanese manufacturers produce entire vehicle series for the European market directly in Europe - mainly in England?") Is already intrinsic to the question.

        Because there are just well-known manufacturers with corresponding sales figures in the European market. For all others, a European factory is not worthwhile.
        That should be clear to anyone who can think something, right?

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          Who speaks of huge market potential and mass distribution? Not me!

          Nobody claimed that no marketing was required to sell cars - what is this nonsense?

          I can only point out my point of view and could well imagine that, for example, the Ssangyong Korando would be a car that runs off the line with SAAB models in Trollhättan.

          Whether this approach is worthwhile for any other Asian manufacturer (in addition to, for example, Honda, Nissan or Toyota - I had thought of these), should confidently be left to the respective companies and not presented as impractical from the outset.

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        I do not sing the praises of Volvo, I prefer a comparison where I think I can pull it because I have both brands in the garage. The 9k MY96, 9-3CV MY01 and, until recently, an 9-5SC MY01 with a S60 MY02 compare well with me every day.

        I also don't see where a Saab would be less "anti-mainstream" than a Volvo? Only the prevalence with Saab is even lower, which is certainly not considered an "anti-mainstream" criterion alone.

        I also ask myself whether nobody notices that the manufacturers in particular have had / have problems lately that are more or less "anti-mainstream"? In today's saturated automotive market, hardly any manufacturer can afford to go beyond the mainstream. Unless your name is RR, Bentley or something else exotic with a correspondingly financially strong clientele. Even well-positioned companies like BMW have the opportunity to try something less mainstream in a niche like the X6, i3 or the GT series.

        The only chance I see would be Tabula Rasa and fingers away from the combustion engine, quasi a European Tesla maybe even with the option of hydrogen propulsion. However, it takes a lot of money and development work and I see no one who would be willing to let money jump. At least not among the always mentioned interested parties.

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          In the second section, Saab and Volvo would have to be swapped in my first sentence ...

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          If you read some comments here, sorry, I do not want to attack or hurt anyone right now, but you might think you read the opinion of some NEVS bosses here.

          "According to the Federal Motor Transport Authority, exactly 12.156 electric vehicles and 85.575 vehicles with hybrid drive were registered in Germany on January 1, 2014."

          Source: http://www.elektroauto-news.net/wiki/elektromobilitaet-in-zahlen

          Why stick to electric cars? The market is still too small! These are niche products. And a bagged, Swedish (high labor costs!) Manufacturer who has disappeared from the market for years, should small quantities (because you can not sell much) with little capital to build the hand? Who should believe that? Even VW, Daimler and BMW (all of whom have reasonably overslept the electric age) certainly have a great technological advantage. And cashcows are completely different model series.

          The whole concept doesn't work ...

          You have to try to build a Saab 9-3 with a combustion engine that is as inexpensive as possible. Everything else cannot have a future ...

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            With the electric car even BMW has slight problems. I would wait and see what happens in the next few weeks, a Saab life after NEVS (maybe) I do not exclude quite so.

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            What is "future" about a 9-3 with a combustion engine? This is yesterday's technology in a brand that nobody misses or needs, apart from a fairly small group of people. VM and NEVS probably thought exactly that way and failed.

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            It does not even emerge from the numbers that certainly half of the e-vehicles are company cars, rental cars for the city, etc.

            With the resources available, Saab or NEVS simply can not build the future.

            Either the switch to burn or the off. I do not see any more possibilities right now. But I like to teach you a better one.

            PS As you can see, I am one of those people who would rather buy a combustion Saab (be it with bought-in engines) than an extremely high-priced electric car made in Sweden. The Saab logo would not be worth that much to me and many Saab fans would be ready to spend a lot on a "new one".

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    Hi Tom,

    as a reason for delays in the negotiations, the limited access rights for various 9-3er models emerge.

    On the other hand, for a company like Mahindra, with a somewhat outdated development department with regard to upscale mid-range vehicles, this should mean a clear plus if something like the PHOENIX platform is available (even if it is not yet fully developed) - this will be for M&M probably also the reason to stay on the ball.

    Possibly. it would also be possible to complete a model on the PHOENIX platform in the coming year - the plant utilization in Trollhättan during the bridging period could perhaps be managed with a Ssangyong model in addition to a 9-3 Sedan with a new engine.

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      Sorry, but that's Mumpitz!

      SAAB took years to put the SC to the side of the 9-5 II. Of course, that does not have to be the case, but a new model on the Phoenix platform can not even be brought to the salesrooms.

      And even a temporary workload makes no sense. The costs and costs of relocating production would be enormous, and current and unit costs would be higher in Sweden than in the Far East.

      This is pink wishful thinking and certainly does not happen.

      And we already had the bridging time with the 9-3 Sedan. NEVS has had to mortgage them by the hundreds because nobody has bought the things. Please wake up.

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        But I think the sales problems with the 9-3 Sedan are largely due to errors in sales. 1. Terribly bad communication, 2. Restriction to a market that is too small. Of course, the age of the platform also plays a role. A revised or even new engine (e.g. BMW) would certainly have done well. But I am sure that the remaining vehicles will still find buyers. The bottom line was that they wanted to build electric cars based on the 9-3 for China - that was the first mistake! As Uncle Victor said: "The business model does not open up to me". As mentioned several times above, it would have been expedient not to produce anything, but to develop it first and concentrate on the spare parts business and maintaining the dealer network. We'll see the rest now! But I am sure that this is not the end of the SAAB story and that it will continue ...

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          Relocation of production is much easier for a large corporation than is commonly assumed. This would even have great advantages for a car manufacturer from the Far East. Why, for example, do well-known Japanese manufacturers produce entire vehicle series for the European market directly in Europe - primarily in England?

          The answer should be clear to anyone who can think something.

          Perhaps a refreshed 9-3 Sedan is actually enough for the so-called bridging time - the sales problems under NEVS
          were really primarily due to the very bad marketing and the much too small sales market.

          The reason for the quick pledge of the remaining stocks under NEVS is simple and simple: Quick money was needed for part of the ongoing financial obligations - clumsy marketing, as is usual under NEVS, would have taken far too long!

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    In addition to capital and industrial potential (steel, energy, automotive, etc.), including TATA Nano for USD 2 (mega-flop!), There are also highly endowed charitable foundations in the TATA economic conglomerate. Although focused on India; but maybe Tom also thought of this potential with his reference to TATA?

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    The above factory photo in black and white…. Premonitions ??? 🙁
    The clock is running .... (mercilessly!).

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    You would probably not do it differently yourself - if a price can be pushed down and the seller has no options to wait any longer (with NEVS there are many ongoing obligations), you try to reach your goal with even less effort.

    Even if NEVS did not sell to the “besiegers” and shut down the shop, the bottom line would not be a higher amount for the remaining values ​​- this would probably be even less.

    The only bright spot for NEVS would actually be another investor who outperforms Mahindra and Dolfeng. If it should give it, he would have to come out of cover soon and strike!

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    What kind of investors are waiting again for the cart to hit the wall? Anyone who thinks now that he would have to save 10 or 25 million to buy SAAB cheaply has not understood anything. The new bankruptcy will ultimately cost more in terms of value. The SAAB brand will be able to withstand this further and also another sale by incompetent insolvency administrators to an investor without a plan such as NEVS (only plan: loosen Chinese state funds). We all can't change that! But if an investor really wants to get serious, he doesn't care a few million euros. The potential in SAAB and the development of vehicles is great - but it requires a rethink - SAAB is not VW, or BMW! How many companies were shortly before bankruptcy and are back on top today? A SAAB comeback is still possible - Dudenhöffer is really wrong! But you need a coherent concept, a lot of patience and money! Wait and see: for my part, I will keep my 9-3 2T and look forward to the next 300.000 km - whatever the cost ...! Fuck it all !

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    When the factory started up again and the first cars could be bought again, hope returned….

    At the moment nobody knows if and when there will be SAAB cars again and what kind of cars they will be. My 9-3 convertible will be 6 years old in November and has only run 85 TKM, I can still wait, but in 3-4 years I actually wanted to buy something new ...

    That will (unfortunately) be tight for SAAB

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    With one big difference: Jaguar / Land Rover hadn't disappeared from the market for as long as Saab is now ... Perhaps the white knight has already turned back because there is nothing left to loot.

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    I also have to honestly say that I don't know if I have the strength and the nerve again to follow such a business crime on the blog and get through it. That wears you down in the long run ...
    My 9-5 now has almost 270TKM on the clock and more and more often I catch myself thinking about taking a look at the other Swedes (or better: Chinese) ...

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      I don't have the nerve either. But NEVS doesn't have that many options either, at some point everything is mortgaged. The clock is running ...

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      ... I did that in real life a while ago, which I found quite sobering and unconvincing.

      For me, the question arises, if Mahindra so cheap, are they really the right ones?
      Or is there so little substance left over that you have to start from scratch?

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        PS .: Very sobering in the other Swedes was the already slightly dusty model range.
        I'm not a friend of felt annual model change, but so they seemed to me quite expensive.

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          Sobering the matter gets to the point. It's not like you do not think outside the box. But I have not found a correct alternative yet.

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            So it is Tom. That is probably one of the reasons why many are still loyal to the brand despite the old SAAB. The cars - including the old ones - are still something special.
            Luckily, they keep above average for some care.

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    At the end nobody wants it anymore and Saab is history. What else is there to get except a brand name that has suffered greatly and a work without a product.

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      The product is just the question. 9-3 or not, no one really knows the answer.

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        Such a great car as the 9-3 is, but for the production probably no longer up to date.

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