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Saab turns profit after 2009 crisis

TT/The Local · 27 Jul 2010, 16:26

Published: 27 Jul 2010 16:26 GMT+02:00

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Saab’s profit is due primarily to deals it struck with companies to which it owed money. These so-called composition arrangements provided revenues of 8.2 billion kronor on the company’s balance sheet. The sale of tools and technology to Chinese carmaker BAIC generated 1.2 billion kronor. Without these two sources of income the company would have made a loss of 5.5 billion kronor.

The number of cars sold fell from about 93,000 to just 38,756. This led turnover to fall 61 percent to 6 billion kronor.

“2009 was not a normal year. Saab went in and out of a reconstruction phase. 75 percent of the debts were written off and we sold tools to BAIC. The annual report has limited relevance, as it does not show Saab’s global results,” the company’s head of information Eric Geers told Dagens Industri.

Story continues below…

Last Christmas almost saw the end of sixty years of car production by Saab, when General Motors announced it was starting to wind down the company. Saab was only saved when a last-minute bid by Spyker was accepted by the US giant.

TT/The Local (news@thelocal.se)

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Your comments about this article

11:56 July 28, 2010 by Tiddler
That really is some achievement Saab, a 5.5 billion SEK loss on a turnover of 6 billion.

Keep up the good work for 2010 / 11, don't worry so much about 2012 because you'll be wound up by then, taxpayer money is running out fast.
12:02 July 29, 2010 by Twiceshy
Remind me again why it was a good idea to invest taxpayer money in this pile of junk they call a car company...
22:46 July 29, 2010 by Sue Esponte
What company turns a profit while it is being wound down? Of course they were hemorrhaging cash. What made matters worse for Saab is the fact that they weren't actually wound down. Instead, they were treated as such by GM (and therefore consumers) and were, therefore, dealt all of the penalties of being wound down WHILE actively engaging in business. They were dealt a double sided blow.

By comparison, Ford reported an operating loss of US$14.6B (137B SEK!!!) in 2008 and they weren't winding themselves down, acting like they were or being treated by the market as a company that was about to go under!!
04:38 August 1, 2010 by repat_xpat
The best thing SAAB ever did for GM was be sold, piece by piece. Their engineers and line workers suck. Sorry to be so honest, but I have some experience with their capabilities. I hope Spyker can change the anti-work culture or it will soon be over.
22:50 August 4, 2010 by Just_Kidding

"... their engineers and line workers suck.."

I am surprised by your comment. I agree that it may be impossible to make affordable cars in Sweden but I have driven few Saabs and they are nice cars.

In Saab they use some of the most advanced methods in auto manufacturing. from advanced use of computer simulation to advanced prototype manufacture. What exactly has made you so disappointed with SAAB?
14:46 August 9, 2010 by rumcajs

Is that all you can think about? taxpayer money taxpayer money taxpayer, you guys sound like a scratched CD.

Why? Because if not, the consucuenses for tye whole country (including you) would've been quite bad.
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