F&I Management & Training

The carmaker Saab's application for protection from its creditors to help it avoid being pushed into bankruptcy has been rejected by a Swedish court.

In response, Swedish trade unions said they could demand that Saab be declared bankrupt within days.

Saab had applied for protection while trying to secure additional funding.

Saab had to suspend production in April when its suppliers stopped deliveries after not being paid. Its workers have also had their pay delayed.

Vanersborg district court rejected Saab's application because it did not believe it would work.

Blue-collar union IF Metall's leader, Stefan Lofven, said: "We will now thoroughly analyse the new situation. If the company doesn't find another solution or file a bankruptcy request themselves, we may be forced to do that in the next few days."

White-collar union Unionen's chief lawyer, Martin Wastfelt, said it might make a similar decision imminently.

"It's all about minimising the risks to secure our members' money," he said.

On Wednesday, Victor Muller, chief executive of Saab's owner, Swedish Automobile, said Saab's suppliers were owed some 150m euros ($210m; £131m).

Swedish Automobile, formerly called Spyker, bought Saab from US giant General Motors in January 2010.

Before the summer, Swedish Automobile announced that two Chinese firms would buy minority stakes in the company.

However, these deals have not yet had regulatory approval in either Sweden or China.

They also need to be approved by the European Investment Bank (EIB).

Under the agreements, Zhejiang Youngman Lotus Automobile plans to pay 136m euros for a 29.9% stake, while Pang Da Automobile will pay 109m euros for 24%.

But the Chinese government is unlikely to give the two companies the go-ahead, according to car analyst Jay Nagley of Red Spy Automotive.

"The Chinese government is concerned that its car industry is too fragmented," he said.

"It wants to see fewer, larger firms that can compete on the international stage. It doesn't want to see ambitious companies like these two buying a very small Swedish manufacturer."

Jonas Froberg, car correspondent at Swedish newspaper Svenska Dagbladet, said: "People in Sweden love Saab, and they hope it will continue. But many are pessimistic, and have become more so over the summer."

DATED: 08.09.11

FEED: BBC

Saab Automobile has been placed into voluntary reorganisation today (7 September 2011) with the District Court in Vänersborg, Sweden. Saab GB has confirmed it is not affected by the move.

Its parent Swedish Automobile NV (Swan), formerly Spyker Cars, confirmed Saab Automobile AB and its subsidiaries Saab Automobile Powertrain AB and Saab Automobile Tools AB (collectively Saab Automobile) have all filed for voluntary reorganisation.

Saab Great Britain and Saab Cars North America are excluded from the reorganisation.

“Swan and Saab Automobile are of the opinion that, considering Saab Automobile’s current limited financial resources, a voluntary reorganisation will entail the best preconditions for using existing resources in the most efficient way,” said a company statement.

Swan is awaiting approval from the Chinese government for a €245m deal to distribute cars in China.

“The eventual purpose of the proposed voluntary reorganization process is to secure short-term stability while simultaneously attracting additional funding, pending the inflow of the equity contributions of Pang Da and Youngman.”

Saab confirmed it has formulated a reorganisation plan aimed at lowering its cost-base and creating a “viable, competitive and independent organisation”

The plan will be presented to creditors within the next three weeks.

In a separate statement Saab GB confirmed it was not part of the voluntary reorganisation filing.

"Saab GB will continue to operate the business in the UK as normal and has sufficient funding in place to meet all creditor obligations and will continue to pay all employees, dealers and suppliers as normal," it said.

Spyker Cars acquired Saab from General Motors in June 2010.

DATED: 08.09.11

FEED: MT

The recovery of new sales in the van and truck sectors continued in August with both van and truck registrations increasing significantly year-on-year, according to SMMT figures.

Sales of vans for the month increased by 22.8 per cent in August to 10,640 units. This pushed year-to-date volumes up by 20.9 per cent to 161,040 units.

Sales in the truck sector (over 6 tonnes) grew 23 per cent to 2,411 units to 24,822 units. Year-to-date sales are up 25.4 per cent to 24,822.

“August saw the strong and sustained bounce-back continue across much of the van and truck industry as operators returned to more typical replacement schedules,” said Paul Everitt, SMMT chief executive.

“With the [combined] commercial vehicle market up by over 20 per cent for the year-to-date, industry is optimistic, but short to medium term economic uncertainty is likely to temper the rate of future growth.”

August is typically a below average month for the commercial sector accounting for less than 5 per cent of annual van sales and 6.5 per cent of truck sales.

UK van and truck registrations August 2011 (Source: SMMT)

Values of 4x4s are rising as a result of higher demand.

Manheim Remarketing’s latest market analysis for cars revealed that in August values of 4x4s rose 3.3 per cent or £369 to £11,424.

Values of 4x4 part exchange values rose 2.4 per cent or £113 to £4,804 over the period, it said.

Mike Pilkington, managing director, Manheim Remarketing said: “The demand for 4x4 stock has started to move early this year with memories of the harsh winter of 2010 still obviously set firm in the minds of consumers and dealers alike.

Earlier this month weather forecaster James Madden of Exacta Weather forecast snow as early as October.

“As we head towards winter, I expect to see the first signs of some moderate to heavy snowfalls as early as October or November in certain parts of the UK.

“In terms of the meteorological winter, I expect December, January, and February to experience below average temperatures, with the heaviest snowfalls occurring within the time frame of November to January across many parts of the UK."

Tyre supplier ATS Euromaster has ordered £600m-worth of cold-weather tyres for the forthcoming season – more then twice the value it ordered last year.

DATED: 07.09.11

FEED: MT