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SAAB

Saab payment ‘glitches’ continue

The Saab production lines stopped again Tuesday due to lack of material, with suppliers confirming that unpaid invoices lie behind the continuing problems.

Saab payment ‘glitches’ continue

“It is true that we are lacking some vital components,” said Gunilla Gustavs at the Saab information department to news agency TT.

On Monday Saab stand-in CEO Victor Muller called last week’s stops in production ‘a small glitch’. The explanation is the same as last week – Saab is negotiating with suppliers.

“Interruptions are sure to happen while that is going on,“ Gustavs told TT.

But according to suppliers unpaid invoices remain the sticking point.

“I have been told that as many as five suppliers have stopped their deliveries because they haven’t been paid. What Saab is saying is pure bullshit,” Svenåke Berglie, CEO for FKG, the trade association for the Swedish automotive business, said to TT.

Berglie finds Saabs actions incomprehensible.

“They are making it sound like it is the suppliers’ fault – that’s why we are reacting so strongly. We have damn well put out for Saab,” he told TT.

He thinks that Saab should tell the truth. Everyone can be halted by cahflow problems and the most important thing is to look for realistic solutions.

“Honesty is what pays. If Saab is currently begging for a repayment scheme they should be open about it. But Saab has chosen the wrong strategy. If you are going to try to paint over the harsh truth you should do it in a way that people can’t see the paint,” he said to TT.

As far as Berglie is aware this has nothing to do with the suppliers trying to negotiate a better deal.

“They haven’t been paid. If you don’t pay your bills you should expect that suppliers react. Many have financial problems of their own,” he said.

On Monday, Victor Muller called the media reports on Saab’s financial problems ‘disproportionate’ and said that the brand was getting ‘hammered’ in the press for not meeting its targets.

But Berglie doesn’t believe the Saab board’s opinion that reports in the media has made matters worse for Saab.

“They have managed this on their own. It is not the media’s fault,” he told TT.

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CARS

Former Swedish Saab bosses appear in court

Swedish car maker Saab's former CEO Jan Åke Jonsson and the firm's former head lawyer Kristina Geers have appeared in court in Vänersborg in west Sweden, accused of falsifying financial documents shortly before the company went bankrupt in 2011.

Former Swedish Saab bosses appear in court
Saab's former CEO Jan Åke Jonsson. Photo: Karin Olander/TT
The pair are accused of falsifying the paperwork at the height of the Swedish company's financial difficulties at the start of the decade.
 
A third person – who has not been named in the Swedish media – is accused of assisting them by issuing false invoices adding up to a total of 30 million kronor ($3.55m).
 
According to court documents, the charges relate to the firm's business in Ukraine and the paperwork in question was signed just before former CEO Jan Åke Jonsson resigned.
 
Both Jonsson and Saab's former head lawyer Kristina Geers have admitted signing the papers but denied knowledge of the Ukranian firm implicated in the case.
 
All three suspects deny all the charges against them.
 

Saab's former head lawyer Kristina Geers. Photo:  Björn Larsson Rosvall/TT
 
Saab filed for bankruptcy at the end of 2011, after teetering on the edge of collapse for nearly two years.
 
Chief prosecutor Olof Sahlgren told the court in Vänersborg on Wednesday that the alleged crimes took place in March 2011, when Saab was briefly owned by the Dutch company Spyker Cars.
  
It was eventually bought by National Electric Vehicle Sweden (Nevs), a Chinese-owned company after hundreds of staff lost their jobs.
 
The car maker, which is based in west Sweden, has struggled to resolve serious financial difficulties by attracting new investors since the takeover.
 
In October 2014 it announced it had axed 155 workers, close to a third of its workforce.
 
Since 2000, Saab automobile has had no connection with the defence and aeronautics firm with the same name. It only produces one model today, the electric 9-3 Aero Sedan, mainly targeting the Chinese market.