Why Saab is keeping mum about an offer to its long-suffering suppliers to pay 10% of their debt is mysterious.
It’s just another twist in the life of this extraordinary story that shows no sign of resolving itself soon although many have been impressed the beleaguered automaker has survived so far against what seemed overwhelming odds.
Go deeper with GlobalData
Access deeper industry intelligence
Experience unmatched clarity with a single platform that combines unique data, AI, and human expertise.
Scandinavian automotive suppliers body FKG managing director Sven-Ake Berglie told just-auto today (21 June) up to 700 of his members had received letters from Saab outlining an offer to pay 10% of outstanding debt followed by the balance in mid-September.
“The 10% is on the table – they have sent out letters to 600, 700 suppliers with the 10% offer,” he said. “In a way it is reasonable, I don’t know why they [Saab] are so hesitating when it comes to communication.”
Saab’s response to just-auto today did not address the 10% deal, but some Swedish media have apparently published details of the letter and suggested suppliers have a deadline of tonight to respond.
“We are not going to make any comments on that level of discussions between us and our suppliers,” said Saab. “We have an ongoing dialogue with our suppliers, it is continual.”
The other detail to come from the FKG boss today was that suppliers would be looking for cash on delivery, a development he acknowledged as “unusual,” a mild understatement if there ever was one.
“The whole story is unusual,” he said. “We have not heard of it before, no, never.”
In a day of pithy comments, one supplier representative was also quoted as comparing the myriad pieces of complicated financing that have to fall into place as “like a birdie on each hole, it is tough.”
It is also an extremely challenging time for Saab’s employees and a brief insight into their situation was outlined today by their union IF Metall.
“They are a tough crowd, they have been through a lot,” IF Metall research officer Aleksander Suza told just-auto from Sweden. “We have done a deal where they have shortened their vacation for two weeks this summer.
“They are putting in their bit [but] it is not the shoes to be in – they are keeping their chins high and trying to stay positive. They really deserve some positive information.”
Perhaps any decision tonight from Saab’s suppliers will be a first step.
