Saab’s boss, Muller chasing money in Brazil


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Tuesday, 09 August 2011
The week started as usual at Saab automobile with nothing happening in the factory. With increasing uncertainty for the employees and piling unpaid loans with the bailiffs,  CEO Victor Muller has been to Brazil looking for partners.

According to Swedish media reports, on Wednesday he will meet with the workers union, Unionen in Trollh�ttan, near Gothenburg to talk about the future of the company and try to dampen the fears of uncertainty among the workers.

According to Swedish business daily,  Dagens Industri, Victor Muller last week in Brazil met a financially strong investors who want  have a go at Saab Automobile so that it could start  production in the country.
Because of the high import duties in Brazil production in the country needed to competitive, according to the reports. However, it is unclear whether the Brazil trip was a success.

Muller went to Brazil immediately after the meeting in Stockholm last weekend where he met with representatives of the prospective Chinese partner Pang Da. No proper information about that meeting has been released.

Reports hold that the Chinese company, Youngman, one of the companies that wants to go in to partnership with Saab, has submitted a production plan for Saab from 2012 onwards, according to China Car Times.

According to Huang Zhiqiang , vice president of Young's passenger car sector, the models in Saab production lines will be extended both upwards and downwards. New models with the names of 91, 96XC and 97 to come. According to Swedish media reports

The new models will be manufactured by the joint project Youngman, Saab and Pang Da  and will start in China, when the Chinese authorities gave the green light. It is not clear the kind of models that are hiding behind the 91, 96, X, and 97. But the new, common Chinese Saab company will completely concentrate on designing and developing the new series.

The business plan is not quite finished, however, an application for the new business submitted to the Chinese authority is to review the conditions.

Youngman sees three stages for Saab's development - first resumed production in Sweden, then a target of 80,000 cars a year to be produced plus or minus zero, economically, and then increase production and as such profits.

But first there is the need to find money for salaries, taxes and subcontractors in Trollh�ttan.
Saab Automobile has begun to pay off its debt to the international automotive component manufacturer IAC (International Automotive Components).

Previously, it required Skr45.6 million, the single largest application for Saab unpaid debts submitted to the Swedish debt enforcement service. Now the debt has fallen to Skr31 million. Saab is said to have paid well above the ten percent which would otherwise, in June offered as first instalment to their suppliers, according to media reports.

“I can not go into the details of the deal, but it was made based on the so-called offer that Saab has previously rolled out,” says IAC's CEO Marcus Nyman to Swedish business daily.
By Team

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