Statement: Further clarifications made by Victor Muller in respect of salary payments

In the past few days Saab Automobile AB’s CEO and Chairman Victor Muller has made statements that the company is in a position to make salary payments to its employees but would not be able to do so because of legal restrictions.

These statements have unfortunately led to the interpretation that the funds would be available within Saab Automobile AB. However, Victor Muller reiterates that the funds to which he referred to are not and have never been within Saab Automobile.

Victor Muller stresses the fact that Saab Automobile in every aspect is in full compliance with Swedish legislation as to the disclosure process in respect of the Swedish enforcement agency ‘Kronofogdemyndigheten’ and has been and will be totally transparent in this respect. Victor Muller regrets that his statements have been misinterpreted.

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6 Comments

  1. Really kind of gets frustrating that we have to overly clarify what is said so that the media and other groups don’t do it for us and get it wrong. Really quick response to this one is great to see.

  2. For once Steven, your clarification only makes this all the more murkier. On the surface, VM reiterates “that the company is in a position to make salary payments to its employees but would not be able to do so because of legal restrictions”, but then goes on to say they are not with Saab Automobile. So how in the world is the company on a position to make payments if they don’t have them? My only thought is that you are referring to funds from Gemeni, VA, or wherever, that for one reason or another haven’t yet gotten to Saab. 

    On the other hand, who cares what the details of the fund situation is regarding the employees if the fact remains that they haven’t been paid and production is on hold for various reasons. What we all hope to see is an announcement of THE DEAL. Last Wednesday or Thursday you indicated that something would happen in 36 hours. Obviously, it hasn’t or Saab wouldn’t have filed for reorganization (unless that was necessary as part of making The Deal workable). I guess, I’m left wondering if there still is a deal out there that has just taken longer to come to fruition than expected, or are we waiting for longer term answers from the Chinese, etc.?

    1. Hi Hugh,

      I can’t claim credit for the ‘clarity’ in this statement.  It’s a corporate piece that I’ve shared here as it’s been shared on Saab other channels.  I won’t try to interpret it any further than what it says as that’s corporate issued stuff.

      With regards to your second paragraph, the impending occurrence from last week was the passing of a deadline for salary payments that triggered the unions’ ability to put us into a bankruptcy proceeding.  So far they haven’t done that, but have indicated that it’s likely to happen early next week.  We will apply for an appeal to our reorganisation proposal, of course, which would protect us from this action.  I’m not sure which application would be given precedence but natural justice would seem to indicate the reorg application would.

      1. You did indicate that (obviously) VM was working on a deal (or deals) to get thru the short term liquidity crisis. I assume that is still going on, correct?

    2. “On the other hand, who cares what the details of the fund situation is regarding the employees if the fact remains that they haven’t been paid and production is on hold for various reasons.”

      Well, the situation is different since a few weeks ago. The point is they can’t pay, even if they had the money; that is what I think is being communicated.

      Some of the suppliers’ debts are at the Swedish DEA, that we know; and some of these suppliers have told the DEA to go forward and collect money.

      That changed everything.

      In that situation, as I understand it, Saab is working together with the DEA, providing information etc. being fully transparent. And it has been mentioned many times. But it means that Saab can’t pay their own employees, since they can’t favour them, as long as DEA is trying to collect money for some of the debts.

      This is a very unfortunate situation; even more so when Clepa and FKG said, this week, that they were positive to a reorganization, that they are ready to cooperate with Saab, if Saab wanted to pay all or some of the debts (as we know Saab’s intention has always been to pay all, when possible).

      Suddenly, at least looking at it from the outside, Clepa is positive. And of course with reorganization they have a better chance of receiving money. Well, some of their members, or FKG’s, it seems, has told the DEA to collect money, which makes it difficult for Saab to pay its own employees. And they are ready to file for bankruptcy. The suppliers are not, since they would probably get very little or nothing.

      So, some suppliers have pushed the employees of Saab to do something the suppliers would not want. Oh, what a great coordination within Clepa and FKG.

  3. I’m very confused – Saab seems to have been hanging on by the fingernails for over a year now. As a current Saab owner (’08 9-3) it is disheartening to see such a promising company being ran the way it has been. Why, for example, is it so insanely hard for this automaker to turn a profit, or a better question would be, why does Saab need to justify its existence through a court at all? Callous as it sounds, it appears natural selection has taken the slowest sheep from the heard following ’08’s crash onward. I desperately want Saab to succeed and have been following this story for some time now, but as charasmatic as Victor Mueller is, he seems to have made this endeavor very painful to watch for a longtime Saab loyalist.

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