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Saab says Chinese order pays for staff, not output
by Staff Writers
Stockholm (AFP) June 27, 2011

Swedish auto maker Saab will be able to pay staff and some supplier's bills with cash from a Chinese order but is still seeking funds to resume production, its parent company said on Monday.

"A Chinese company placed an order to purchase 582 Saab vehicles with a total value of 13 million euro ($18 million) ... the full pre-payment is expected to be received this week," Swedish Automobile said.

The unidentified buyer's money will "provide Saab Automobile with short-term funding to pay the wages to its employees and make partial supplier payments," the Dutch firm formerly know as Spyker said.

It will not be enough for the group to restart production, which stopped on June 8 because the company lacked parts for the assembly line as suppliers halted deliveries to Saab over unpaid bills.

Swedish Automobile said it was in talks to find funding to resume production but warned "there can, however, be no assurance that these discussions will be successful or that additional short-term funding will be obtained."

Supplier group International Automotive Components (IAC) said Saab owed suppliers about 44 million kronor ($6.7 million, 4.8 million euros) and that it had filed a claim against it with the Swedish Enforcement Authority, a public authority which intervenes in unpaid bills cases.

Some Saab suppliers and re-sellers have also announced they had to let staff go because they had not yet been paid.

Last week, Saab said it had even run out of cash to pay its staff, with about 1,500 blue collar workers due to receive their salaries on Thursday affected immediately, with the rest of the firm's 3,700 staff to follow suit.

Two union representatives and a legal advisor left Saab's board at the weekend following the announcement, leaving Swedish Automobile head Victor Muller as its sole member.

"I am pleased to announce this agreement, as it secures part of the necessary short-term funding for Saab Automobile and allows us to pay our employees' wages before the end of this month," Muller said in Monday's statement.

"I respect the decision of the union members to resign from the board of Saab Automobile," he added. "We very much regret the current cash shortage which is causing undeserved hardship to all and we are working relentlessly to resolve the current situation."

Muller also said Russian financier Vladimir Antonov, a former Spyker shareholder who repeatedly said he wanted to invest in Saab, was still interested in participating in the company.

Antonov, however, still needs to be approved by the European Investment Bank (EIB), which loaned money to Saab.

Sweden's national debt office (NDO), which has a say in Saab's ownership structure because it guaranteed the EIB's 400-million euro ($580-million) loan, recommended "to clear him over eight weeks ago," Swedish Automobile said.

"Once clearance has been obtained, Mr. Antonov can provide much needed financing and/or capital to Swedish Automobile/Saab Automobile at this critical time. We are pushing hard to obtain this vital clearance as soon as practically possible," the company said.

Union IF Metall on Monday issued a strongly-worded statement imploring the government to take action for the new investor to be allowed in.

"I cannot imagine the French or the German governments standing on the sidelines and waiting for a long process to go through instead of trying to (act) when an industry of national interest is affected," the union's head Stefan Loefven said in the statement.

Iconic Swedish brand Saab was saved at the last minute at the beginning of 2010 when it was bought by small Dutch firm Spyker from US giant GM.

In its 20 years as a GM brand, Saab never turned a profit.

The new owner had big ambitions for Saab but the carmaker has since then lurched from one cash crisis to another.

Earlier this month, Saab announced it was entering a partnership with two Chinese businesses -- car distributor Pang Da and manufacturer Zhejiang Youngman Lotus Automobile -- which was to generate investment of 245 million euros ($350 million).

A previous deal with a Chinese firm fell through.




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Nissan to boost global market share to 8% in FY 2016
Tokyo (AFP) June 27, 2011 - Japanese auto giant Nissan Motor on Monday said it would aim to achieve a global market share of eight percent by the end of fiscal 2016 as it unveiled a six-year business plan.

Nissan, which is 44.3 percent owned by French partner Renault, also said it aimed to lift its operating profit margin to eight percent in that period under its "Nissan Power 88" growth plan.

"We are definitely on the offensive," company president and CEO Carlos Ghosn told reporters.

Japan's second-biggest auto maker by volume, after Toyota, had a 5.8 percent global market share last year.

The plan will see the Nissan-Renault alliance aim for cumulative electric vehicle sales of 1.5 million units in that time. Nissan last year began selling its all-electric Leaf car in Japan, the United States and parts of Europe.

It said it would also aim for a 10 percent share of the Chinese market while boosting its presence in economies such as India and Brazil, where it will build a new factory producing 200,000 vehicles per year.

Nissan currently has a 6.2 percent market share in China.

"In 2012, we will have nearly doubled our production capacity to 1.2 million units," in China, Ghosn said.

"We will further increase our capacity to be in line with our goal of 10 percent market share," he said.

In Russia, Nissan and its partner Renault are in talks to take a combined more than 50 percent stake in major Russian auto maker AvtoVAZ, which sells the Lada brand.

Yokohama-based Nissan will continue to focus on zero-emission vehicles and low-emission technologies while also aiming for a 10 percent share of the global luxury market with its Infiniti brand.

Nissan aims to expand its sale network to 7,500 major points of sale globally, from the current 6,000.

The automaker last week said annual net profit this fiscal year will fall 15 percent year-on-year after Japan's March 11 earthquake hit output, while it also struggles with high raw material costs and a strong yen.

But despite lower profits, it expects global sales to rise 9.9 percent in the year to a record 4.6 million units, with full production returning in October after parts shortages caused by the quake.

The 9.0-magnitude quake and tsunami destroyed entire towns, left 23,000 dead or missing and crippled electricity-generating facilities, including a nuclear power plant at the centre of an ongoing atomic crisis.

Japanese firms were hit hard by power and chronic parts supply shortages, with the likes of Nissan, Toyota and Honda having to sharply cut production and shut plants due to a lack of crucial components.

Nissan shares closed up 0.11 percent at 845 yen ahead of the announcement.





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Carnegie Mellon methods keep bugs out of software for self-driving cars
Pittsburgh PA (SPX) Jun 23, 2011
Driver assistance technologies, such as adaptive cruise control and automatic braking, promise to someday ease traffic on crowded routes and prevent accidents. Proving that these automated systems will work as intended is a daunting task, but computer scientists at Carnegie Mellon University have now demonstrated it is possible to verify the safety of these highly complex systems. To do so ... read more


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