Replacement in Nyköping. Orio AB CEO Jonas Tegström will leave the company after 5 years. The search for a successor is already running. The change also has something to do with Swedish politics. And with an old promise.
Jonas Tegström has been managing the business of Orio AB for 5 years. Under his direction, the former Saab Automobile Parts AB from an after-sales supplier for Saab to a logistics company for external companies. The logistics business in Nyköping is going well, Orio has established itself on the market. Also, the business with Saab spare parts, the roots of the company, is still profitable. Although the number of registered vehicles with the Saab Greif on the hood is internationally consistent. But it is shrinking more slowly than predicted in the original planning.
Saab spare parts profitable
And even if Orio persistently ignores some segments, such as supplying the classics with reproductions: The trade in Saab spare parts continues to be profitable. By no means all of the strategies that Tegström put through during his time in Nyköping were so successful and could establish themselves in all markets. Recently, the company had to report losses due to high depreciation, and the number of employees halved in the last 5 years from once 400 to only about 200. With strict cost discipline Tegström was recently optimistic to be able to return to the black in this year. Now the search for his runs Successor and the current CEO will remain in office until its inception.
The reasons for this could, apart from the disappointing development, also be reflected in the eventful history of the company. The highly profitable after-sales subsidiary served the state as a pledge for an EIB loan of 2 billion Swedish kroner to Saab Automobile AB. With the closing of the factory gate in December 2011 the Swedish state took over the enterprise a year later and holds it since then.
The then government prized the value on 2.5 to 3 billion crowns and gave the promise that the taxpayer should not stand for the loan. Since then, development in Nyköping has been in the public interest, even though the government in Stockholm has changed hands in the meantime. After all, the values estimated at the time proved to be overly optimistic in the following years and had to be corrected downwards by the Riksgålden.
Political pressure, an old promise
Most recently in April of this year, the topic came back to the public. Despite the positive outlook for the next few years, the Minister of Economic Affairs had to Ibrahim Baylan admit that the value of the basically profitable company has fallen in recent years. He promised the public to minimize the loss of tax revenue.
Tegström's optimistic predictions may not have been convincing enough for this goal. After 5 years, another one will take the company operating in 52 countries into the future.