Last exit Mahindra

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.

Last Exit ...
Last Exit ...

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!

44 thoughts on "Last exit Mahindra"

  • I just hope that all sides in the negotiations now finally stop gambling on Pockertisch. Bring nothing, if in the end all just bluff.

  • From the point of view of Mahindra SAAB may be a great deal:
    As Mahindra / Ssangyong one has it difficult in Europe at first. The name SAAB, if continuity were recognizable, would bring a sense of trust.
    With the plant in Trollhättan, the SAAB technical history and the commercial failure of recent years, SAAB is only a fragmented company. I mean that Mahindra could show at SAAB that they "have what it takes" because there is no intact, complete structure. The task is to restore or create this structure again. A lot of work!
    But changing an existing structure can also be very stressful - see for example Simca / Chrysler / Talbot / Peugeot

  • Here is always over bean counters, merchants and accountants wailed.
    I would like to note that a solid, possibly “pea-counted” contribution margin in connection with suitable sales is the basis of a successful company.

    In this respect, in the case of Saab, I am pleased to have bean counters that only release development projects with a contribution margin, marketing people who correctly assess customer needs, and who in the foreseeable future can realistically estimate an entrepreneur who is capable of generating a net return on their investment and by appropriate Hedge financial instruments.

    • That's what I think as well. A high on the bean counters: Who does not honor the pea, is not worth the euro!

  • The behavior of NEVS seems to me like a small child who, when playing hide-and-seek with adults, holds its hands in front of its face and calls out loudly: "Look for me - you won't find me!" - Even if the Indians got the bid, what then? Where is the future-proof platform? the motors? the requirements for pedestrian protection? Why is there no other interested party in the race? I recently read the story of Borgward on wiki: frightening parallels!

    • You must not forget, Borgward was mauled behind the scenes by a big competitor.
      SAAB has more or less constantly stumbled over its own "mountain pines".

    • If we put ourselves in the position of a potential investor, we have to ask ourselves the following question: What do we actually have here and how much is it worth to the market? Answer: a more than ten year old Saab 93, a platform, an electric Saab called Eigengebastel and a factory in Trollhättan. That and a huge pile of shit is everything! For Saab to become something new it needs magic! in Trollhättan there are supposed to be trolls and I think they are the only ones who can save Saab

      • I would like to take up and expand your question: what is the value of the total mixed situation SAAB and in whose ownership?
        - the rights to the brand: where are they? At Orio? At Saab AB?
        - Tangible assets for the production of the "current" 9-3: are in THN and belong to NEVS?
        - Intangible goods such as patents, construction documents, developments: do NEVS / GM belong to them?

        Did I forgot something?

        • After all, many things are clear, transparent and have been the topic of many times: Brand = Saab AB. Orio AB has rights of use.
          Saab 9-3 sedan NEVS, simultaneously BAIC, as well as the rights to the 440 platform.
          Patents owned by Saab Automobile AB do not include NEVS, GM outsourced patents.
          Phoenix Platform: In large part in the acquisition of NEVS property, now to (allegedly) 100%, since all GM patents have been removed. Phoenix is ​​tomorrow's topic on the blog.
          Unclear, but possibly no longer important, are rights to the station wagon and the convertible. The lay to 12 / 2011 at GM. Hope that helps to quench the thirst for knowledge

          • Thanks, Tom! It's all on this blog, unfortunately sometimes well hidden in the comments. So I could not do it all together anymore. Your listing helps in any case, to quench the thirst for knowledge 😉

            • Excellent! I admit, it is also not easy to keep track 😉

  • We should not judge rashly about Mahindra, I think we lack a lot of background knowledge. We should not give up hope too soon. We are already so bad, it can only get better, it could have been over long.
    It remains interesting in any case.
    We are used to waiting
    Nice 3.Advent and we look forward to the Saabfestival. What will we expect in Trollhaettan?

  • It needs Saab in the mainstream car company. I totally agree with that. I have been reading for years now, trembling, happy to start the productions again, grieve when they are set again. Very exhausting. Now again a silver lining on the horizon. Yes, it is one and maybe it is the best since 1990. Should NEVS and Mahindra succeed in closing the deal, M + M will have at least one investor with car experience and obviously interest in the brand. To maintain the brand name of SAAB M + M will probably succeed; The relationships of the respective owners seem to be too good. BMW? None !!!! The only one who, in my view, would have ever made sense, would have been Porsche.

    I drive all my car life SAAB, and that in the third generation. I would really wish the developers and MA's of SAAB to be able to show what they can do, and I think that there are some things ready to reactivate. Everything is on stand by; even a dealer network that spans the globe. And quite disinterested, I would be happy about every halfway Saabian new model and buy. I remain optimistic!
    And as long as I can not buy any new Saabs, I'll continue my old ones.

    • Oh my God!!! Mainstream auto company !!! Nonsense….

  • last hope is now sometimes mahindra.
    Nevertheless, I have the feeling that SAAB could start again / should, because there are no alternatives.
    May one learn from mistakes (have enough now) and regroup in old glory.
    Nevertheless, 9000.- just invested in a stunted 9-5.

    It needs SAAB in this mainstream car company

    • That there are no alternatives to SAAB, I thought until recently. This is the exceptionally strong brand loyalty, which is part of the brand value. Not only did I buy my current SAAB because of the likeable SAAB image, but I also made it fit for the next 5 years.

      Amazing that it still sounds like that, although the needs of buyers and traders have been trampled on for years.
      The image is now something of the A ... .bgrund, (Tom does not need to intervene - the composure is preserved - :) The original innovative splash of color SAAB in automotive uniformity has become a shop of dream dancers on foils, with which one no longer identifies can.

      The next manufacturer will not have it so easy, the SAAB homeland security bonus decreases. Would be nice if a potential buyer is aware of it and acts accordingly.

      • The image has certainly suffered - but one shouldn't see these things too bleakly now.

        Even Mercedes drivers come back to the beloved German brand as a buyer, although here even over several Baureihenj away almost equally important image in terms of build quality for years in the basement.

        Mahindra would also have the opportunity, in the future with good work, to get a (re) good image for our brand.

  • Actually, I have almost certainly assumed that NEVS / SAAB would have finished completely and forever at the end of this year.

    So I'm happy that there is still a “chance of survival” for the “zombie brand” (according to yesterday's mm report) and meanwhile (and probably for the time being) continue to enjoy my current one SAAB ... 😉

    • It's also easy to spend the winter with your current Saab

      • Oh ... I'm curious about that! 🙂
        As I mentioned recently, I might get new, nice photos of it in the New Year….

  • This back and forth is unbearable!

    The Saab brand takes more damage with each passing day. However, my sympathy goes first and foremost to the employees in Trollhätten and all financially dependent in this situation.

    None of the participants is involved in the negotiations with the heart. As well: These are buyers / traders who naturally hope for a profit. But our brand needs to be completely rebuilt. There is nothing to do with cream in the first years.

    In my opinion, Saab can only be rescued by a carmaker from the premium segment. It has been said on this blog `times and finally my favorite: -BMW-.

    I'm the vernacular on the Bayern from some comments still well known, but in my opinion, both brands are not so far from each other by the orientation. The barriers exist only in the minds.

    The M & M's will not be able to influence the further course of the situation positively. My glass is half empty. Even if I am on a different course emotionally, I know that it will now come to an end.

    All readers a quiet Advent season.

    • I know BMW people who have already worked with the Swedes.
      The nicest opinion of them is that you can steal the swords, while running, the shoelaces.
      So there is also the enthusiasm for a Swedish adventure within limits.

      • My enthusiasm for BMW is also limited, even if some “SAAB niches” can now be found there.

        • BMW engines in SAAB vehicles - why not? We got along with GM too. In my opinion, that wouldn't be the worst thing that can happen.

          If it is Mahindra, they will buy a lot in Europe.

          Bayern shouldn't wear their heads over their hats either - they were also facing bankruptcy. Of course, nobody likes to remember it anymore. From a global perspective, BMW is still a niche supplier today.

          would, would, would, we'll see.

          • BMW builds nice turbo engines, I could also imagine well in Saab. And BMW wants to continue to grow. The core brand does not offer much expansion potential, Mini comes eventually to the limits. Another brand would fit well. Just like that, as a note.

          • Hi Tom
            How did the search for the missing BMW engines go? (after the last bankruptcy)
            The Munich were pretty much eaten there.

            • Honestly, no idea. The matter has somehow fizzled out and the engines have not come to light so far. There are mysterious halls in Sweden

  • Nothing is safe yet. Except that the reconstruction continues until 2.March. There are still so many factors that must fit here.
    Again, one should also think something positive and not always be pessimistic. That annoys and does not bring anyone. There is a chance of new Saab made in Trollhättan.

  • Mahrindra did not make it to the other companies, too little was offered, now they are the only ones and that makes things easier for Mahrindha. Whether this is really the salvation for SAAB, I leave open

    • That is how I see it too. At that time, they offered too little, money and maybe ideas, and on the other side were American corporations; Ford in the case of JLR and AM, GM in Saab. Now they are dealing with a man trying to avert his personal bankruptcy.

  • I think that if the Indians fail, and that danger is great, then Saab will not be around in March. Share other readers My opinion? I think the Indians have already failed at Aston Martin, Land Rover and Jaguar says more than enough, so Saab should be due next. I certainly do not trust the Indians for a second.

    • Benito, the situations are hardly comparable. Let's wait and see. In “real life”, beyond Saab, I have had a lot to do with companies from India over and over again. The experience is 100% good. Anyone who accompanies Indian companies over a longer period of time is enthusiastic about their innovative strength and reliability.

      As for Saab, I am quite relaxed. If the India deal does not work then it's the end of NEVS. This could pave the way for other companies interested in the work and in the brand. Mahindra decides the fate of NEVS, but not necessarily of Saab.

  • I think Mahindra won't disappoint. They are taking the acquisition of a premium brand to serious for a while and this is the last opportunity for them too. But this is business, so money talks (louder). Let's hope the deal isn't hurt because the Mahindra name came out public.

  • For NEVS it is certainly the last chance - for SAAB it can continue even after bankruptcy and without Mahindra. That might be the real chance for SAAB - to be able to continue without legacy.

    The key question is whether an investor with an industrial vision is ready to join.

    Exactly this vision I currently do not see in Mahindra. With their peanut counting have already spoiled several deals. SAAB has already suffered more than enough among the accountants in Detroit and does not need that once again.
    The fact that one has agreed to the haircut for the suppliers (if you consider what can be extracted and put this ridiculous amount in relation to the necessary investments) does not do anything good for the production at the Trollhättan location and for the willingness to invest in the brand and guess the products.

    The statement that Europe relies on the Indians, I do not share.

    I just want to remind you that before 2 years, BMW was also among the bidders and that from today's perspective, interesting prospects could also arise with Volvo. At the moment we know as little about the two European manufacturers as we do about the Indians. For both, SAAB would be a fitting addition and the development of new products could be much faster than with Mahindra.

    I can honestly do without the fact that after the bean counters now come the Böhnchenzähler.

    • Bean counter well.

      I would rather wish something!
      That would be great if I sit in 1-2 years back at FSH and make my equipment crosses. A completely new and innovative Saab 9-3 from Trollhättan, that would be top!

      Just before Christmas you can have a few wishes. Or?

      I cross my fingers…

    • My last knowledge is that BMW was not there at the time. It would not have done anything for Saab. Due to the then beginning, at first unexpected sales success of the Mini BMW needed more production capacity; and Trollhättan would have had that. But that's it. Some have talked about front-wheel drive competence, but by that time BMW had already had several front-wheel drive projects running, and they had engineers and resources without end, and would not have technologically benefited from Saab.

      • That's right. BMW needed only one assembly plant.
        NedCar then preferred you.
        Nevertheless, a few SAAB mules with BMW engines drove around in Sweden.
        Victor would have been happy!

        • NedCar was more willing, that's the small but crucial difference. In the winter of 2011/12, the Munich team won a “rebuff” in THN, we know the result. I don't want to write more about it, half the world is reading along with it.

  • THANK YOU for this (again!) Factual article. That's one of the reasons why I've been “hanging” on the blog for the last few years. There has never been such good timely SAAB information! CLASS!
    The picture of the impasse is apt: either NEVS drives SAAB against the wall, or Mahindra makes the last exit.
    I sincerely hope that everyone involved is aware of the seriousness of the situation and that appropriate positive decisions will be made for SAAB and for the Trollhättan region.
    At Christmas sometimes wishes come true: I wish a strong resurgence of the brand SAAB!
    In this sense, first of all a pleasing 3. Advent!

  • As already written yesterday ... I wish for a YES from Saab for Christmas, Mahindra should get THE cash out, now or never.

  • If Mahindra has failed with 3 brands so far, it's guaranteed to go awry. At least now it should be clear that NEVS has totally failed, and thus for Saab was a total flop. What do other readers think?

    • All good things come in threes (try!).

    • The relationship between M&M and SAAB differs from the short negotiations or relationships between M&M and Jaguar / Land Rover (at that time still under Ford) or M&M and Aston Martin:

      The business relationships with SAAB AB have been around for a long time, and the actual negotiations regarding SAAB automobiles / NEVS are also running much longer than they had with the other companies mentioned.

      M&M also knows that it is now about the last well-known brand that is available for takeover for the time being.

    • So it is, Nevs and owner have absolutely no idea. The whole thing goes awry, there are too many egoists at work.

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