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National Debt Office approves Saab deal

TT/The Local/cg · 5 Jul 2011, 15:42

Published: 05 Jul 2011 15:42 GMT+02:00

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"The state still has collateral to cover the guarantees provided, also without a pledge of shares in the current property," wrote the office in a statement released on Tuesday.

The decision is now up to the government.

Car manufacturer Saab Automobile reported a loss of approximately 3 billion kronor ($478 million) for 2010, according to their annual report, on Tuesday registered with Swedish Companies Registration Office (Bolagsverket).

The operating profit landed on minus 3.1 billion kronor.

2010's turnover was 6.3 billion kronor. Car sales numbered 28,284, plummeting from the previous year's result, when 39,745 were sold, not to mention 2008, when roughly 93,000 cars were sold.

Sales and production were heavily affected by the events in early 2010, when the firm paused production during seven weeks.

One of the greatest challenges since then has been to replenish the supplies with resellers, as well as restoring reseller and customer faith in the brand. This has proved difficult, writes the company in their annual report.

SAAB Automobile list several uncertain factors for the company's future: running out of cash during 2011, a risk of losing money due to raised interest rates, and currency changes that the company has no possibility of insuring themselves against, according to the annual report.

Accountants also point out the risks with the business.

"If the company does not succeed in securing requisite financing, or if there is a negative development for the company, continued operations will be uncertain," write the accountants.

Story continues below…

The government will make a decision on the matter based on the material they receive from the National Debt Office.

"We will look carefully at the material prepared by the National Debt Office," said Johanna Martin of the Ministry of Enterprise to news agency TT.

She would not speculate into when a decision could be ready.

TT/The Local/cg (news@thelocal.se)

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Your comments about this article

23:17 July 5, 2011 by CurtInFalcon
No company can survive this amount of debt without securing serious backing from a major corporation. I'm amazed that Saab has lasted as long as it has. However, the news has been much better lately and perhaps Saab can get the approvals they need to form the planned partnership with Pang Da and Youngman. Prehaps the Swedish government can pressure the EIB to allow Vladimir Antonov in as an investor. This would put Saab on more solid footing.
01:42 July 6, 2011 by millionmileman
Eva Srejber left her EIB position and 4 days later EIB says yes! This is why people in Chicago end up with charges. This is a criminal waste of Saab's resources, lost markets, damaged reputation that really hurt sales.

This is why the US economy is in such mess because of regulation and uncertainty. Free enterprise would have let the company thrive. I am really angry for what the workers at the Saab factory have had to endure.

These politicians could not boil water for sausages at a hot-dog stand. The Brits have a reference to the end of a brewery tour but I won't go there!
03:47 July 6, 2011 by repat_xpat
>MMan: Wow, You have an interesting perspective. I can't say that I follow your logic. I don't understand how the pure free enterprise would have "let the company thrive." I thought they it would have closed in a pure free enterprise system. Please help me understand how the socialist practices of the SAAB factory workers are the victims of this issue. Thank you.
11:34 July 13, 2011 by johnny1939
Don't flog a dead horse. It seems during my life time SAAB cars have had nothing but problems. Who would buy a SAAB these days w/ all the uncertainty.
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