Another SAAB story : No Money, No Name.

^ Haters Gonna Hate ^


Earlier this week we learned that Saab can not pay its supplier bills until its Russian sugar daddy, Vladimir Antonov, gets Swedish government approval to buy into the company that owns it. Now, suppliers are speaking out, telling Automotive News [sub] that the brand and its owner, Spyker Cars, owes “tens of millions” of Swedish crowns (10m crowns equals about $1.6m). A representative of the Swedish suppliers association explains

There is a perception in the media that there are discussions on extended credit times and such. But it is not about that, it is about the fact that Saab must pay its bills. If they cannot sort out their financial situation, things look very bleak.

With a “desperate” hunt for investment underway, Saab’s only hope appears to be Antonov, who says he has $71.5m to invest, an amount that should cover the $4.7m+ supplier debts. Meanwhile, work at Trolhattan has been stopped for at least the rest of the week. But even if Antonov gets Swedish government approval to invest, another, equally dire problem appears to be materializing: a dispute over the use of the name “Saab.”

The Saab brand is currently owned by Spyker Cars, a dutch-registered company. But Spyker Cars recently sold its Spyker sportscar business to an Antonov-owned firm an announced its intention to rename itself. The assumption has been that Spyker Cars would rename itself with some variation of the Saab name, but according to Thelocal.se, that assumption faces a serious obstacle.

Spyker has since indicated it wants to change its name to something that more reflects its new focus, but Swedish defence contractor Saab AB remained cool to the idea of Spyker using ‘Saab’ in its new name.

Instead, Spyker plans to vote to change its name to Swedish Automobile at its upcoming annual meeting, scheduled for May 19th.

But, as Saabsunited.com points out,

it is unknown if they are fully free to use the name SAAB, or if they have to always ask Saab technology AB if they want to use it differently.

With no money and no name, Saab is finished. If, on the other hand, Saab Technology AB has no claim to the Saab name, other options are opened. A Wall Street Journal commentary by Alessandro Pasetti suggests another possible outcome: a Chrysler-style takeover by the bottom feeders at Fiat. Pasetti sets up the challenge by explaining the hopelesness of Saab’s situation

Under a very bullish scenario, we estimate that even at steady normalized long-term 10% growth of sales—a rate never consistently achieved by any auto maker on the planet—combined with a break-even earnings before interest, taxes, depreciation and amortization in 2011 and mid-teens operating margin expansion afterwards, the group will not be able to service its debt obligations by 2016. That’s precisely when the majority of its debt comes due, according to Saab’s financials.

More realistically, any viable business plan, in the light of the cyclical nature of the auto business, should hinge on a cash injection.

The upshot? Even if the name issue works out and Antonov invests, Saab will need more money. The solution?

As remote an option as it may seem, Fiat could strike a deal, structured along the lines of its Chrysler involvement. It could renegotiate the company’s European Investment Bank loan, putting in relatively little money but providing plenty of know-how for a 20% to 30% stake and leadership in the business.

The Italian auto maker is widely expected to increase its stake in Chrysler to 30% and take a majority stake in Detroit’s third largest auto maker in the next twelve months pre-IPO. Admittedly, Saab would be no game changer for Fiat, but it could become a short-term loss leader to help promote both Chrysler and Alfa Romeo, which is attempting a U.S. comeback. Saab offers a decent distribution network in the U.S., with sales of around €160 million (about 19% of total sales), so cross-levering Chrysler/Alfa and Saab’s distribution networks would make sense.

Meanwhile, trimming European exposure (78% of sales at €639 million), would help cut the highly uncompetitive cost base at the Swedish car maker. Its fixed and variable costs structure put it at a disadvantage not only to European mass auto makers, but also premium manufacturers like Daimler AG’s Mercedes and BMW in Germany.

The model pipeline is weak, but Saab brings fleet customers, which constitute a key part of its customer base. Logistically, moreover, Saab is attractive and, perhaps equally importantly, it offers a back door to China, where Fiat has historically struggled to make a breakthrough. On March 25, Saab announced a partnership deal with China Automobile Trading Co. Ltd. Russia is also on Saab’s radar.

Interesting… but not exactly comforting. Fiat’s got plenty of challenges without taking on another charity case. Fiat certainly seems like a likely candidate to “rescue” Saab, based on its experience getting a bailed-out Chrysler for no money down, but whether such a scenario would mean an end to Saab’s problems is hardly a sure thing.

Review: Test Drive Unlimited 2

Test Drive Unlimited 2 (TDU2) is the latest pistonhead-oriented video game, a genre I’ve enjoyed since Test Drive first arrived in 1987. My PS3 usually spins two amazing time wasters: Gran Turismo 5 (GT5) for sheer hotshoe geekiness and the Grand Theft Auto series (GTA) for snark, storyline and reality-blurring gameplay. TDU2 sets out to blend elements of both, making it unique and intriguing in concept alone. But does the promise of a game that’s less serious than GT5 but more car-focused than GTA work in practice?

True to the GTA-side of the equation, TDU2 is escapism incarnate: you start in Ibiza (Hawaii comes later), the island famous for catering to the wealthy party-going set. That implies the need for top dollar super cars, flashy SUVs, and old school classics. The need for low-rent valets is obvious. That’s who “you” are: a hotel car-jockey daydreaming of a Jack Baruth racing lifestyle.

It’s a fun premise: TDU2 starts with poolside trust fund babies in a Penthouse apartment. You decide which person (avatar) best represents you: White/Black/Asian guy or girl. This sucks if you are a brown person but eventually I found a plastic surgery center, spent thousands of dollars and made “him” look more like me. Yes, really.

Back to the Penthouse: we learn that said party is in your honor. And there’s a gift in the garage: a Ferrari California! A woman wearing a dress tighter than Chrysler’s operating profit wants you to drive it. There are Barbie-doll females aplenty, but this is a “T for Teen” rated game: car-related dialogue matches the labored smack talk of a Fast And Furious flick. Ordinary conversations are whitewashed to the point of vapid PR jabber. Worse still, the majority of characters are complete douchebags, even the nice folks are fake and robotic compared to GTA.

Then again, there’s no Holy Grail of car-gaming communications: unlike GT5, TDU2 never insists on a catalytic converter upgrade on a pre-emissions vehicle. Good for them.

Back to the game, your birthday party is just a dream. And “you” wake up as a lowly valet, working up the ranks of a racing series called Solar Crown. The premise is kid friendly: TDU2 gets youngsters interested in cars by adding the social gaming elements of Xbox/PS3 consoles into the pistonhead mix. Kids won’t forget their smart phone aspirations, but TDU2 could make them lust for a Pagani Zonda.

Let’s dig into the social world: unlike GT5, one gets out of their car to do stuff. And you will explore: TDU2 demands purchasing more houses, more cars, attending (terribly pointless) driving schools and interacting with fellow racers on a variety of fronts.

My “favs” include car spots sprinkled around Ibiza: brand specific dealerships, performance garages, and automotive window dressings available via body shops. The free-roam gameplay is entertaining, kept organized by a map so beautifully detailed it makes Google Earth blush and GTA weep in agony. Much like said map, TDU2’s graphics are excellent, but the cars aren’t rendered to the point of GT5’s car-porn realism.

Too bad TDU2’s driving simulator is not for those old enough for a driver’s license. Vehicle dynamics contain enough vague responses to put away the race seat/feedback tiller in favor of a normal controller. And you must drive everywhere, at least once: unlike the geographically-diverse environment of GTA San Andreas, this gets old quickly. Making things worse, the music and DJ chatter is derivative, dull and repetitive. Earning TDU2’s style points for fast driving is also difficult, adding frustration for those with inflamed ADHD. City-to-city travel should let you have your cake and eat it too: this game takes too long to get to the goods, it’s an exercise in patience.

But, like the others, TDU2 lets one drive like a maniac without the pitfalls of vehicle collisions and their associated legal fees. Speaking of, there’s little damage upon impact and the island is deserted, aside from vehicular traffic. But the in-car views of the island are thrilling: watching the Lotus Espirt’s needles move to the right at full throttle was a great thrill compared to the UR-Accolade version of this game.

Back to why this is a non-driving simulator: while not a raging fan of online play, meeting fellow racers in the (awesomely rendered) clubhouse was wicked-cool. There were challenges aplenty created by fellow gamers, available at an activity desk. Back on the road, if you spot someone worth challenging, flash your lights, wait for confirmation, and get ready to rumble.

I’ve barely scratched the surface in this review, mostly because it feels like explaining the concept of an all-inclusive resort to someone that’s never seen an airport. This YouTube review will narrow the gap. If you like online interaction and wish to endlessly modify parameters such as the design of your homes/cars/avatar, this game can go on forever. Even with the driving simulator flaws and utterly trite dialogue, TDU2 is worth owning. If you have kids.

Atari provided a copy of Test Drive Unlimited 2 for this review.

Chinese Police Arrests Golden Infiniti G37??

Every few years, Beijing’s government lashes out against billboards that advertise an ostentatious lifestyle. These exhortations are largely ignored, which preserves an endless source of involuntary humor.

Meanwhile in Nanjing, “scores of amazed onlookers flocked to a busy shopping street” to see a gold plated Infiniti G37 convertible that had pulled up curbside. “Unfortunately for the owners, police soon flocked to the scene as well,” reports the Daily Mail.

First, Nanjing’s finest wanted to issue a ticket for ostentatious illegal parking to a well-dressed couple that emerged from the car. Then, the police noticed the lack of a necessary ingredient for a ticket: A license plate. The golden car was not registered. A tow truck made its way through scores of reporters that conveniently were on hand, and the golden car was under arrest. Another win in the strike hard campaign against brazen bawdy bling

However, two days later, the golden Infiniti was not in the impound lot, but on display in a jewelery store in Nanjing. It also was featured prominently in state-owned Xinhua, with its own gallery, and the note that “it took five artizens (sic) over four months to plate gold on the Infiniti car.” Don’t worry, can’t bring luxury down in China.

What it needs is taste. That will come next year. Or after I have disposed of the faux Rococo fixtures that were left behind by the previous owner of my apartment.

The fine art of media stunts however is already mastered with aplomb.

.