Tag Archives: U.S. Congress

Jan Åke Jonsson On Possible Reconstruction Outcomes

Posted on 06. Mar, 2009 by .

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There was an article that came out earlier this week from Sweden’s Alt Om Motor that involved an interview with Saab Automobile AB’s CEO, Jan Ã…ke Jonsson.

In this interview, he discussed what GM indicated back on the February 17th press conference. He also provided possible scenarios when Saab Automobile’s reconstruction path completes on May 20th, assuming it crosses the March 31st deadline for GM, (when they return to the U.S. Congress to ask for more taxpayer money from the U.S. Treasury.

It is an interesting read, even though it was loosely translated:

When General Motors February 17, presented the plan to let go of Saab, by the end of the year reflected the delay of Saab dealers. Without support from GM saw Saab’s management no alternative but to apply for reorganization.

A similar procedure for General Motors, the GM leadership fought against tooth and nail. The reason is said to be that a company enters an uncertain period of time lose the trust of customers.

That is exactly what has happened to Saab.

– The decline is mainly due to the concern, “says Jan Ã…ke Jonsson, when he meets TT on the Motor Show in Geneva on Tuesday.

Saab Head, who admirably maintains that everything will be all right, think, or rather hope that soon the dust settles.

Most reconstructions usually involve staff reductions for the company to reduce its costs. But Jan Ã…ke Jonsson wants to reassure the nearly 4000 employees.

– Our plan is to finish 9-5, 9-4 X and develop a new 9-3. Everything but 9-4 X will we build in Trollhättan, which means that if we come out of this as we thought we need more people. It is about a thousand in production and 350 engineers, “he says.

But there’s a big if. The plan must be funded. It is not yet. It is based on the State agrees to provide loan guarantees for loans of the European Investment Bank. To do that requires the government “a clear picture of ownership, as Jan Ã…ke Jonsson says.

He wants to reach a solution in the months that reconstruction may run in the first instance. Otherwise, he and even the word bankruptcy in his mouth.

– On May 20 is the reconstruction of the current application end. Either we need to apply for an extension, have a solution, or file for bankruptcy, “says Jan Ã…ke Jonsson.
[…]

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Auditors To GM: More Taxpayer Money Or Bankruptcy

Posted on 05. Mar, 2009 by .

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gmloog.jpgAccording to auditors, they have told GM, it’s either more taxpayer money or bankruptcy.

We know more money won’t solve GM’s problems, so it’s clear that bankruptcy is the only way to go. Once again, GM does not think that they could afford $100 Billion dollars for bankruptcy, but their arguement just does not stand.

It’s March 31st, 2008 when GM will be facing the U.S. Congress again when they try and convince the U.S. Government that more taxpayer money is needed. I we recall, the U.S. Treasury said that if GM does not show that they are going to be profitable, and by all accounts, they won’t be, then they will have to pay back the money they were loaned, which would certainly force GM into bankruptcy then.

The following news organizations have said the following about this recent auditors report on GM.

The Detroit News

DETROIT — General Motors Corp. says there is “substantial doubt” about the company’s viability and that bankruptcy is possible unless it can implement a broad restructuring plan, according to a regulatory filing today.

CNN Money

The embattled automaker made the disclosure in a 480-page filing with the Securities & Exchange Commission.

The government must determine that GM has a “positive net present value” or else demand repayment of the loans within 30 days – a development that would almost certainly plunge the company into bankruptcy and quite possibly force it out of business.

“If we fail to obtain sufficient funding for any reason, we would not be able to continue as a going concern and could potentially be forced to seek relief under the U.S. Bankruptcy Code,” GM added.

Bloomberg News

GM CEO, Rick Wagoner made $14.7 Million in 2007, and $5.2 Million in 2008!

BBC

GM reiterated on Thursday that a bankruptcy filing could lead to liquidation, as the company would not have enough funds to finance its reorganisation.

Reuters

GM faces an end of March deadline to complete concession talks with the United Auto Workers and bondholders to reduce its debt load as part of a bid to convince the autos task force assembled by U.S. President Barack Obama that it can be made viable with a new round of government help.

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General Motors Submittal To U.S. Treasury Extended Until 6pm, Followed By Press Conference At 6:30pm

Posted on 17. Feb, 2009 by .

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CNN Money reports that General Motors is now delaying their business plan submittal to the U.S. Treasury from 4pm to 6pm tonight.

It’s not surprising that General Motors cannot even meet a deadline, but I guess as long is it is taking place on the 17th, it’s okay.

Trollhattan Sweden’s TTELA, whom I just got off the phone with, also indicate that General Motors will have a press conference following this submittal, a half and hour later, at 6:30pm EST, which will be 12:30am for the folks in Sweden.

It’s going to be late night for us, but an even later night for the Swede’s who are 6 hours for those on the East Coast and 9 hours ahead of those on the West coast!

There’s nothing like dragging this news out until the 11th hour, almost quite literally in this instance today, whew!

Here is a loose translation from TTELA:

GM holds a press conference half a night

Tonight leaving General Motors its action to the U.S. Congress. Latest news is that GM intends to hold a press conference at its headquarters in Detroit at 0:30 GMT.

According to Detroit News says GM’s spokesman Tom Wilkinson plans to share their action plan after the stock market closed, that is, after 23 o’clock Swedish time.
According to the Detroit newspaper GM is planning to publish its plan around 23:30, followed by a press conference an hour later.
It is a more than 50-page document, with nearly 1 000 pages of appendices and the additional pages, which then lands in Washington.

We can assume that Saab will play a negligible, but for Sweden still incredibly important, part of the plan.
Data in recent days has increasingly pointed to the GM intends to separate the Saab in a separate company.
It is likely that it is the information we have to wait for Saab in the night.
In this case: What does it mean for Saab?
Firstly it is a marker from GM that Saab should be separated and, at best, to be sold.
[…]

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Saab Automobile Has Prepared The Plan, GM Prepared to Inject The Money, Both Await the U.S. & Swedish Governments Decision on Tuesday, February 17th.

Posted on 16. Feb, 2009 by .

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According to Trollhättan, Sweden’s TTELA news company, Saab Automobile AB Sweden’s CEO, Jan Ã…ke Jonsson has finished the plan, GM is apparently prepared to inject the money up to $600 million from the EIB, but now both are awaiting the Swedish Government to provide their share of the $400 Million dollars.

Below is a rough translation of this article for your reference, if you can follow it:

Photo: Jerry Lövberg / TTELA.SE

jaj_300.jpgSaab has developed the plan. GM is prepared to inject money. Now the ball with the government. But it is urgent. Time is on its way to running out of Saab Automobile.

In the last working Saab’s CEO Jan Ã…ke Jonsson feverishly to get all the pieces in place, to convince GM and especially the Swedish government to support Saab’s survival plan.

As the clock is ticking on without any decisive event has changed from the grave to acute.

The pot is the company Saab and jobs. Many job. Perhaps the 15 000 jobs in the balance. Maybe even more.

On Tuesday leaving owner General Motors in its action plan to the U.S. Congress. It must be good, otherwise the whole GM aid package to save the group escape bankruptcy.

Where GM must also talk about what we can imagine with Saab.

Most TTELA spoken to agree that Saab-issue must be resolved before then. Otherwise, it’s hard to be positive about the outcome. Then the worst scenario of a very real threat.

The plan to save Saab there. It is developed by the company itself with CEO Jan Ã…ke Jonsson in the lead.
[…]

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GM’s Saab Automobile Funding Plan Getting Closer

Posted on 05. Feb, 2009 by .

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According to Autocar, GM’s Saab Automobile funding deal is getting closer as we begin to rapidly approach February 17th.

I was happy to see Carl Peter-Forster reference the 4 product rollouts clearly, those being the 9-4x, next generation 9-5, next generation 9-3 and a premium compact, presumably the astra based 9-1. For all intents and purposes, I might as well get that product listed here on Saab History as that material continues for reference sake.

It’s also nice to see him also mention publicly, “GM’s mistake” re-launching the brand too late which is honest and good to see,. My respect for him increases significantly admitting that was a problem, but now onward and upward to the future with all of these product rollouts and a positive result on February 17th within GM’s business plan for Saab being submitted to U.S. Congress.

GM is working at top speed to complete “the base outline” of a Saab funding agreement with the Swedish government before the end of the month, GM Europe president, Carl-Peter Forster, has said.

A plan for Saab’s future must be part of the overall viability plan for GM presented to the US government authorities at the end of the month, said Forster. GM, currently Saab’s sole owner, has sought Swedish government approvals and finance to give the loss-making company an independent, Swedish-based management, and to centre its manufacturing once again in Trollhattan.

The Swedish government has already agreed in principle to provide funding for the moves, but has no desire to take its own stake in Saab. Meanwhile, GM said it would willingly concede control of the Trollhattan-based company to achieve stability, while continuing to supply it with “architectures and technologies”.

“I still believe in the Saab brand,” said Forster. “Its traditional values of safety, understated design and care for the environment all fit today’s socio-economic climate and are very resilient. With the right model structure and a consistent, well implemented strategy, I’m convinced Saab could still be profitable.”
[…]

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Trollhättan, Sweden’s Newspaper TTELA, On Saab’s Race Against The Clock

Posted on 28. Jan, 2009 by .

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Here is an update from Trollhättan, Sweden’s newspaper TTELA titled “Saab’s Race Against The Clock”

We know that the first version of the business plan from GM shown to Jöran Hägglund on behalf of the Swedish Government was not credible, so back to the drawing board for Saab Automobile & GM in a race to get a solid business plan submitted prior to February 17th.

Below is most of the article loosely translated from Google translate:

Saab’s race against the clock

GÖTEBORG

It is busy days at Saab. February 17 GM will present its action plan for the U.S. Congress. Then a solution which secures the future of Saab’s be clear. – It is a bit of a race against the clock, “says Anna Petre, Saab’s responsible for the contacts.

Yesterday, she was Human Resources and Allan Roth Lind in Gothenburg together with other representatives from the automotive industry to inform the Western alliance Swedish MPs and politicians about the situation. A series of meetings these days.

– There are daily discussions right now, “says Petre.

English plan
TTELA wrote already two weeks ago to Saab, GM and the Swedish government outlined a plan for the Swedish Saab. It aims to collect nearly all the production (including the 9-3 convertible and the next 9-5) and the development of Trollhättan.

The parties have different interests, all of which perhaps can be satisfied with such a solution.

The state wants, whether to offer financing loans, the Saab-job ports in Sweden. GM, in turn, see an opportunity to break out Saab in a more independent role, perhaps for future sale.

However, the approach must be understood to have long-term economic viability.

Anna Petre want neither confirm plans or say something about how the negotiations proceed.

– A few months forward, then the picture has become clearer, “she says.

An important date is, of course, February 17, when GM will present its action plan for the U.S. Congress.

The plan under discussion for Saab includes access to short-term financial support in the form of rescue loan and / or support through the European Investment Bank.

No formal application has not yet been made, it is a complex process and the rules have just been completed.

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Saab Automobile AB President Says To Succeed, Saab Needs To Be Separated From GM

Posted on 13. Jan, 2009 by .

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Sweden’s AM&S Interviews Saab Automobile AB President, Jan-Ã…ke Jonsson at the NAIAS that began this Sunday.

It appears that Jan-Ã…ke Jonsson states that Saab Automobile needs to become a separate unit from General Motors altogether in order for it to succeed. This is great to hear!

For the rest of the interview read below:

jaj.jpg

auto motor & sport,

ams: Bob Lutz told me that General Motors can not support Saab longer?

Jan-Ã…ke Jonsson, JÃ…J:Saab is an integral part of GM and many of the projects under way in the GM, we are a part of. The cost of many projects would be increased for GM on Saab was with. Builded not Saab 9-4X is the other cars at the factory in Mexico more expensive. But Saab has to become a separate unit in the talks between GM and Saab, the Swedish government and GM is really good. ”

ams: Does this mean Saab will grow in Sweden, to become more self-sufficient, to clear himself?

JÃ…J: “The talks are constructive and I think it can be very good for Saab to come. We will be more independent.”

ams: When will something happen?

JÃ…J: “GM must present a plan for U.S. Congress in the first quarter of this year. As such, Saab’s new role to be clear.”

ams: What is this?

JÃ…J: “Everything we do for GM in terms of development work and so on, we’ll charge GM. And all the help we get from GM and everything we buy from GM, we will pay for. Saab becomes an independent unit with its own economy. We will write contracts for all these things. In this way, it’s easier to show off Saab’s real results. ”

ams: The future?

JÃ…J: “We have a good business plan with many new models in the pipeline.”

ams: What future scenarios are there? Continue in GM, continue yourself, be bought by another company?

JÃ…J: “Yes.”

ams: What do you think about this year’s Detroit Motor Show?

JÃ…J: “It has been very little talk about the cars and just business. The big challenge is to get customers.”

ams: But you do not have new cars here?

JÃ…J: “Oh, yes, Saab 9-5 Griffin is new here in the U.S.. And it is not a concept car, it is available to buy.

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