Lars Holmqvist, former CEO of European automotive supplier body, CLEPA, is expressing grave doubts as to the viability of Saab’s new owners’ electric vision for the bankrupt automaker.
National Electric Vehicle Sweden (NEVS) has acquired Saab Automobile – although Saab Parts is to remain firmly anchored in the government’s orbit for the time being – with a view to restarting some form of production in Trollhattan either next year or in 2014.
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Holmqvist – himself a Swede – was intimately involved with the almost two year battle to save Saab as many of his members were owed considerable amounts of money following the manufacturer’s bankruptcy – and, despite the new deal, there appears little likelihood of any of them securing outstanding cash.
“This is a bad development as in my opinion it ends up being within a year, a list of crises, a major crisis and there will be a call for support and jobs that have to be saved,” Holmqvist told just-auto.
“There are two hurdles before them still. One, the question of using the brand Saab, that is not yet agreed upon. The other is they need to get a decent partner because there is no chance, no chance whatsoever these guys will be able to build an electric car. They have no idea how to build cars.”
Despite no official price being disclosed by the Chinese/Japanese/Swedish consortium headed by Sino-Swede Kai Johan Jiang, Holmqvist indicated the cost was between EUR1.3bn (US$1.6bn) and EUR1.8bn.
That settlement does not include Saab Parts, which was acquired by the Swedish government as security for its initial loan guarantee to the European Investment Bank of EUR400m, with its immediate future appearing to remain under Stockholm tutelage.
The former CLEPA chief also expressed some doubt as to Jiang, noting: “He seems to me like he was out there to save the world and I am always sceptical about people [like] that in the automotive industry,” said Holmqvist.
“It is not a small company you can buy step by step – unless you have hundreds of millions at your disposal you will fail.”
NEV’s purchase agreement covers the main assets of Saab Automobile, Saab Automobile Powertrain and Saab Automobile Tools and includes all outstanding shares in the property company which owns the Saab Automobile facilities in Trollhättan, Sweden.
A new model will also be developed, also based on Japanese technology. These EVs will be sold worldwide, starting initially in China, which NEVS said was projected to be the largest and most important EV market.
