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SAAB IN PERIL

CARS

GM ‘hasn’t taken responsibility for Saab’

Sweden’s enterprise minister Maud Olofsson praised Saab employees following meetings with company representatives on Monday, while at the same time chastising General Motors for abandoning the troubled Swedish brand.

GM 'hasn't taken responsibility for Saab'

“I not thinking of letting GM get away from this so easily,” Olofsson said a midday press conference in Trollhättan, home to Saab’s main Swedish operations.

The remarks came following a morning spent discussing Saab’s precarious situation with company leaders and workers.

“We’ve had a very positive conversation with Saab’s leadership, but also with a number of works on the factory floor,” said Olofsson at a midday press conference in Trollhättan.

She also stressed the importance of Saab’s workers for the company’s future.

“Employees are Saab’s primary resource,” said Olofsson.

“It’s good that the employees have so much faith in Saab.”

One of Olofsson’s deputies at the Ministry of Enterprise and Energy, state secretary Jöran Hägglund, also criticized GM for abandoning Saab over the years.

“Our criticism is directed at GM in this case and not at Saab. GM hasn’t taken responsibility as an owner for many years,” he said.

Olofsson also stated that the government needed a private investor to answer for Saab’s turnaround and repeated the state should not own car makers.

“We need to know there is a secure ownership which takes responsibility for the business plan so that it (Saab) can show a profit in 2012, 2013,” Olofsson said.

At the weekend Swedish media quoted Saab’s CEO as saying rival carmakers were among potential investors in the company, which was granted protection from its creditors on Friday by a Swedish court.

Olofsson said since GM has declared it would cut its ties to Saab in a year, a new owner was a prerequisite for the government to believe the Swedish car brand had a future.

“Let us hope those who have contacted (Saab) are the kind of interested parties who are prepared to step in,” she said.

The government has welcomed a reorganization of Saab, but has said it believes its turnaround plan — in which it projects profitability in 2011 — is too optimistic. Saab estimates it made a loss of 3 billion kronor ($543 million) last year and expects a similar result this year.

GM has said it will fund some of Saab’s liquidity needs but that it will not keep the company beyond January next year.

Sweden’s government also said it was preparing to apply for 4 billion kronor from the European Globalization adjustment Fund to support Sweden’s south-western region, which is home to much of the country’s auto industry.

Union leaders who met with Olofsson during her visit also emerged with a more positive perspective on the government’s stance.

“Their message to us is clearer. It really feels like they want to stand up and help,” said labour representative Paul Åkerlund to the TT news agency.

He also seemed to appreciate the difficulties facing the Swedish government with respect to an eventual buyer for Saab.

It may be more of a tactic for negotiating with GM,” he said.

CARS

From lizards to water, eco-bumps snag Tesla’s giant Berlin car factory

In the green forest outside Berlin, a David and Goliath-style battle is playing out between electric carmaker Tesla and environmental campaigners who want to stop its planned "gigafactory".

From lizards to water, eco-bumps snag Tesla's giant Berlin car factory
Tesla's gigafactory outside the doors of Berlin. dpa-Zentralbild | Patrick Pleul

“When I saw on TV that the Tesla factory was going to be built here, I couldn’t believe it,” said Steffen Schorch, driving his trusty German-made car.

The 60-year-old from Erkner village in the Berlin commuter belt has become one of the faces of the fight against the US auto giant’s first European factory, due to open in the Brandenburg region near Berlin in July.

“Tesla needs far too much water, and the region does not have this water,” said the environmental activist, a local representative of the Nabu ecologist campaign group.

Announced in November 2019, Tesla’s gigafactory project was warmly welcomed as an endorsement of the “Made in Germany” quality mark – but was immediately met with opposition from local residents.

Demonstrations, legal action, open letters – residents have done everything in their power to delay the project, supported by powerful
environmental campaign groups Nabu and Gruene Liga.

Tesla was forced to temporarily suspend forest clearing last year after campaigners won an injunction over threats to the habitats of resident lizards and snakes during their winter slumber.

READ MORE: Is Germany’s Volkswagen becoming ‘the new Tesla’ as it ramps up e-vehicle production?

And now they have focused their attention on water consumption – which could reach up to 3.6 million cubic metres a year, or around 30 percent of the region’s available supply, according to the ZDF public broadcaster.

The extra demand could place a huge burden on a region already affected by water shortages and hit by summer droughts for the past three years.

Local residents and environmentalists are also concerned about the impact on the wetlands, an important source of biodiversity in the region.

Tesla Street

“The water situation is bad, and will get worse,” Heiko Baschin, a spokesman for the neighbourhood association IG Freienbrink, told AFP.

Brandenburg’s environment minister Axel Vogel sought to play down the issue, saying in March that “capacity has not been exceeded for now”.

But the authorities admit that “the impact of droughts is significant” and have set up a working group to examine the issue in the long term.

The gigafactory is set to sprawl over 300 hectares – equivalent to approximately 560 football fields – southwest of the German capital.

Tesla is aiming to produce 500,000 electric vehicles a year at the plant, which will also be home to “the largest battery factory in the world”,
according to group boss Elon Musk.

In a little over a year and a half, swathes of coniferous forest have already been cleared to make way for vast concrete rectangles on a red earth base, accessed via the already iconic Tesla Strasse (Tesla Street).

German bureaucracy

The new site still has only provisional construction permits, but Tesla has been authorised by local officials to begin work at its own risk.

Final approval depends on an assessment of the project’s environmental impact – including the issue of water.

In theory, if approval is not granted, Tesla will have to dismantle the entire complex at its own expense.

But “pressure is being exerted (on the regulatory authorities), linked to Tesla’s significant investment”, Gruene Liga’s Michael Greschow told AFP.

In early April, Tesla said it was “irritated” by the slow pace of German bureaucracy, calling for exceptions to the rules for projects that help the environment.

Economy Minister Peter Altmaier agreed in April that his government “had not done enough” to reduce bureaucracy, lauding the gigafactory as a “very important project”.

Despite Germany’s reputation for efficiency, major infrastructure projects are often held up by bureaucracy criticised as excessive by the business community.

Among the most embarrassing examples are Berlin’s new airport which opened last October after an eight-year delay and Stuttgart’s new train station, which has been under construction since 2010.

Brandenburg’s economy minister, Joerg Steinbach, raised the possibility in February that the Tesla factory could be delayed beyond its July planned opening for the same reason.

SEE ALSO: Tesla advertises over 300 jobs for new Gigafactory near Berlin

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