The NEVS reconstruction is being extended; by March 2nd, the proceedings are to come to an end. Now neither of the parties can afford mistakes and negligence, the clock is ticking.
Had NEVS carried out the haircut as announced, it would have been over yesterday. The suppliers - some are now going through the third reconstruction process within a few years - have set clear warning marks. There are limits - how narrow they are, NEVS has explored, patience is at the end.
The next few weeks are the last chance for NEVS, for Mahindra, possibly also for the Saab brand. The NEVS owners could recover part of their funds invested in an adventure. The goal for Kai Johan Jiang can only be damage limitation; management is in a similar situation. NEVS is a failed company ... let's not talk the story nicely. It is not an investor from China who is to blame, it is the result of a whole chain of misjudgments.
The birth defect of taking over a brand but not buying the distribution channels already had the basis for failure. Ignoring the European customers and dealers willing to buy, ignoring the profitable spare parts business - every businessman shakes with this thought. Where were the consultants back then? It's past, it's about other things. For example, personal reputation. Management could save face with a successful sale to Mahindra. If it failed, Bergman and his people would be the ones who would have buried automotive engineering in Trollhättan. Worse, they would be the Saab gravediggers. They don't want that.
Bergman and Kai Johan Jiang move on a one-way street. The last exit is called Mahindra, there are no alternatives. You must not miss the turn lane. The smallest mistake and it calls the bankruptcy judge.
The Indians finally have NEVS in their pockets, at the latest after yesterday. NEVS no longer has any alternatives and the scope for negotiation is minimal. The continuation of the process is stamped Mahindra and is based solely on the hope that the Indians will buy and step in as financiers from January. If the buyers withdraw, the process has failed.
For Mahindra, a big number in the domestic vehicle market, it is the last chance to acquire a traditional European label. In 2009 Jaguar - Landrover failed on the home straight, in 2012 at Aston Martin. In the meantime, the European cake is completely distributed, only the Saab remains in Trollhättan are still available. Are you really?
That's the crucial question that keeps us going. Does Saab AB rename the brand name? Yesterday it was heard that it was a question of money. If Mahindra is prepared to invest heavily in the brand, then Saab could come back.
The takeover schedule is ambitious if it is to lead to the goal. A quiet Christmas, a leisurely January, that will not happen. That the judges after the 2. March again to agree to an extension is considered unlikely. If it happens, when everything is going to be successful, exciting times could be ahead of us. In a positive sense, after nearly 4 years of crisis blogging! I would wish it!