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Spyker Cars finalizes the purchase of Saab
· Spyker Cars finalizes deal over the purchase of Saab Automobile
· Transfer of ownership has taken place
· Transaction signals the start of an exciting new era for Saab
· Saab and Spyker to operate under parent company Spyker Cars N.V.
Trollhättan. Spyker Cars N.V. today confirmed it has finalized the deal with General Motors Company to purchase Saab Automobile AB. The transfer of ownership took place in Stockholm on February 23. Going forward Saab Automobile and Spyker Cars will operate as sister companies under the umbrella of the Amsterdam Euronext listed parent company Spyker Cars N.V. (Ticker symbol:SPYKR). This transaction secures the future of Saab Automobile and signals the start of an exciting new era for the iconic brand.
Victor Muller , CEO of Spyker Cars NV said: We are delighted - Saab´s future is now secure." He continued: From today we will be concentrating all of our efforts into reviving Saab and transforming it into a sustainable and profitable company with the confidence to be bold. We will reinforce the emotional experience between Saab drivers and their cars and we will focus on Saab's historical strengths in the fields of independent thinking, aircraft heritage, ecological performance and motorsport.
Through this acquisition we add approximately 15 euros per share in equity and 60 euros of assets. With a well funded business plan in place we are looking forward to working with Saab´s management on the realization of that plan and bringing exciting new products to our customers. Real Saabs, Saab Saabs"
Jan Åke Jonsson, CEO of Saab Automobile AB said: Today´s announcement is great for Saab´s customers, dealers, suppliers and employees around the globe, the level of passion and support shown to Saab over recent months has been remarkable and this does bode well for the future. Now we aim to get back to the execution of our business plan, starting with the introduction of the new 9-5 later this year, and with the continued support of our employees and business partners I am confident we will succeed."
This transaction represents the successful outcome of months of hard work and intense negotiations, all aimed at securing a sustainable future for this unique brand, and we are pleased with the positive outcome," saidJohn Smith , GM vice president for corporate planning and alliances.
This is a great day for Saab employees, dealers and suppliers, and a great day for millions of Saab customers and fans worldwide."
(source - Automotive News) |
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Russia investor wants in Spyker-Saab deal
Russian investor Vladimir Antonov, ousted from a deal by Dutch luxury sports car maker Spyker to buy Saab from General Motors Co., said he was still lending to Spyker and wanted to remain a co-owner of the group.
Antonov said on Friday that he ordered a private investigation to clear his name and would send the results to GM to persuade the U.S. giant to include him in a deal which saw a producer of just several dozen handmade sports cars a year buying money-losing Saab.
"In response to all this noise in the media we have retaliated by hiring a large and globally renowned investigation agency which has former FBI and CIA agents among its employees," Antonov said.
"They are doing a report which will be ready in two to three weeks. The agency is investigating whether the business of (myself) and family has any criminal links and will issue assessments backed by documents in response to all accusations against us".
"Then we will send the report to all participants of the transaction and to the press," he said.
Dutch investors group VEB has criticized the secrecy surrounding the financing and structure of deal to buy Saab, in which Spyker CEO Victor Muller bought 29 percent in Spyker from Antonov's Convers Group.
Antonov said he would provide Muller's company Tenaci with loans for around $100 million of which $25 million had been already disbursed. The loans to Tenaci are part of a broader scheme by Spyker to buy Saab.
Antonov said he was still lending because he hoped to remain a shareholder in the Spyker-Saab group.
"Of course I want (to) but it would all depend on GM," he said. "We can quietly come back to the issue when the investigation agency submits the report and if GM removes its concerns."
Antonov said that he could become shareholder again if Muller sold shares, the group did a new share issue or converted debt into shares.
"There are plenty of options," he said adding he was committed to Spyker because of its good business prospects.
(source - Automotive News) |
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Spyker will need more money to sell more Saabs
Spyker will have to raise more cash in order to make its $400-million acquisition of Sweden's Saab sustainably profitable amid gut-wrenching changes in the global automobile industry.
Spyker CEO Victor Muller clinched an audacious deal last month to buy Saab, helping it avoid closure, but now the Dutch maker of custom-made sports cars will have to double Saab's production, roll out new models and build a robust distribution network.
That will require hundreds of millions of dollars in new investment, and Spyker, which built only a few dozen cars last year -- will have little choice but to tap investors for additional capital, said Tim Urquhart, analyst at IHS Global Insight.
"I think they have their work cut out," Urquhart said "Muller will try to prove what Spyker can do with the business."
Spyker says there is enough financing -- $1 billion -- to develop new models and become profitable by 2012, including the new Saab 9-5 based on an Opel platform.
So far, with Saab's $200 million in the bank, a 400 million euro European Investment Bank loan and the preference shares issued to GM -- which carry hefty dividend payments of 6 percent from 2012 and 12 percent from 2014 -- Saab can keep operations afloat. There is also a 150 million euro credit facility.
But in a sign that Spyker may be prepared to tap new investors for cash, Muller told shareholders last week that he would seek to list Spyker shares in London and Stockholm, and possibly delist from Amsterdam. Asked whether that would make it easier to raise cash, Muller said the goal was "to be closer to investors."
Muller's ability to attract investors has saved Spyker several times in the past, most notably after an ill-fated attempt to break into Formula One racing in 2007.
Stiff target
Analysts estimate Saab must sell upwards of 75,000 cars per year to be cashflow positive, up from 39,903 last year and dwarfing the approximately 300 Spyker has sold during its entire decade in business.
The combined group also faces the challenge of establishing a robust distribution and service network so that it can offer customer service, warranties and replacement parts.
"Competing in this sector requires significant investment at the best of times," said Stuart Pearson, analyst at Credit Suisse. "It will be very difficult for Saab to get back to previous production and sales levels."
All this underscores criticism that Muller is better at doing deals than making cars, and the challenges that a combined Saab-Spyker will face. One market analyst called Spyker "an investment vehicle" that happens to make cars.
But given the fact that Saab sales have sunk so low and Muller's drive to make the deal pay off, event a modest improvement could ultimately prove him right.
"Any reasonable effort will pay off," Richter said.
Spyker, which went public in 2004 and has a market capitalization of 52 million euros ($71 million), is set to close the deal within the next few weeks, which will allow it to restart the 3,400-worker Saab factory in Trollhattan, Sweden.
Next month's Geneva auto show and delivering a final payment of $24 million by July will be key to proving that the two loss-making businesses can become a profitable one.
Distribution key
Saab's steep sales drop in 2009 shows customers are unsure if they are buying a car that can be serviced in the future.
Apart from ramping up production, Saab will also have to distribute, sell, service and offer parts and warranties to customers, especially in the United States where an estimated two-fifths of sales are generated.
"Brands that have not paid enough attention to distribution have failed," said Jim Richter, an operations consultant for the U.S. automotive industry at Net Profit Inc.
Saab will likely stick with GM's existing distribution and support network, but then will either have to sign up with a private distributor and give away margins, or build its own network, which could take years of careful, painstaking work.
To make this work, Muller, a hard-charging former fashion executive and mergers and acquisitions lawyer, is focusing on bringing what he calls an entrepreneurial spirit back to Saab.
Muller has already dropped hints that he is very interested in developing a new 9-1 series model to add to Saab's lineup of 9-3, 9-5 and 9-4X sport utility models.
Producing over 100,000 cars per year -- which Saab did just just a few years ago -- is quite different from the careful construction that goes into each 200,000-euro Spyker C8 Aileron that features handcrafted leather seats, chrome-laden bodies and a tuned Audi V8 engine which can top 300 kph (186 mph).
"They're not really cars, they're more like art," said Urquhart of Spyker's custom-made cars.
(source - Automotive News) |
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Spyker, Saab take key steps toward reviving Swedish automaker
Two months ago it looked like Saab was finished.
At the time, parent General Motors Co. said it would close the money-losing Swedish brand because a sale to Dutch niche car maker Spyker Cars NV could not be completed quickly enough.
Saab's chances of survival appear better than ever after two key events last Friday.
The European Investment Bank (EIB) approved a 400 million euro ($547 million) loan to Saab, which is a crucial part of Spyker's deal to take control of Saab from GM.
This was a crucial component in enabling the acquisition of Saab to proceed. Months of hard work have paid off. We cannot wait to close this transaction now as soon as practically possible, Spyker CEO Victor Muller said in a statement. Said Saab CEO Jan Ake Jonsson: "This represents another milestone along the path toward the creation of an independent Saab. This is very good news and everyone at Saab should feel very positive now."
Busy day
The approval came hours after Spyker shareholders met in the Netherlands to approve the deal with GM. During the meeting Muller said that if the deal is completed the combined carmakers will seek to list its shares in London and Stockholm and leave the Amsterdam stock exchange.
"With this acquisition, we have a very rare opportunity to buy into an iconic brand," said Muller, a former mergers and acquisitions lawyer and fashion brand executive who revived the defunct Spyker brand as a luxury automaker a decade ago.
Asked whether any new listings would make it easier to raise cash from investors, Muller said the goal was "to be closer to investors."
Despite high hopes, Europe's public offerings have met with tepid investor interest this year, with deals attracting funding below target or shelved altogether.
“He's (Muller) is going to have to prove what Spyker can do with the business," said Ian Fletcher, analyst at IHS Global Insight.
GM agreed late last month to sell the struggling 60-year-old Saab brand as it rebuilds its business, and struck a deal with Spyker two weeks ago after intense negotiations and two failed bids.
Spyker is paying GM $74 million in cash and $326 million in redeemable preference shares for Saab. The deal was contingent on Saab getting the EIB loan.
Muller has already secured the $50 million needed to close the deal with GM, with the remaining $24 million due in July.
He also vowed that the new group will reach profitability in 2012, although neither Saab or Spyker have made any money in the past decade.
With the loan, Saab's $200 million in cash and the redeemable shares, Muller said Saab would have enough to fund its business plan. The brand's revival is centered on a new 9-5 that launches this year, the arrival of the 9-4X crossover in 2011 and the debut of a new 9-3 in 2012.
Saab produced just 20,791 cars last year as sales slumped to 39,903 from 94,751 in 2008, but aims to raise production to pre-crisis levels of about 100,000 to 125,000 within two years with the help of the new models and a new sales and distribution strategy.
(source - Automotive News) |
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Spyker seeks Saab funding, sets tough profit goal
Spyker Cars has set Saab an ambitious 2012 profit target as it stressed development funding was secured despite needing more cash to fund its acquisition of the Swedish brand.
The Dutch luxury carmaker, which produces just a few dozen handmade cars per year, clinched an audacious deal to buy Saab from General Motors Co. last week.
Spyker hopes to win back customers for Saab by focusing on three or four niche models, eating up an anticipated $1 billion in development costs.
Spyker, which will hold a shareholders meeting on the deal on Feb. 12, also said Saab would return to profitability by 2012 -- a timeframe called into question by an Amsterdam analyst.
"It is quite ambitious to be profitable by 2012. I don't think sales will rebound that quickly," Jeroen Willard at Dutch brokerage AEK said. "I think it will be more like 2014-2015."
Spyker said Saab's development costs will be partly financed through $326 million in redeemable preference shares to be issued by Saab to GM, $200 million in cash and a 400 million euro ($556 million) European Investment Bank (EIB) loan.
That together gives the new company about $1.08 billion in funding, while Spyker said Saab will also be granted favorable terms for supplies by GM and deferred payments from Saab to GM.
"With the EIB loan, which is still to be granted, Saab's funding is secured and no share issues will be required, provided the developments at Saab will be in line with the Saab business plan," Spyker said.
Spyker said its statement -- which spelled out how much cash it would have -- was issued after incorrect media reports, some of them in Sweden, which cast doubt on its development funding.
Saab produced just 20,791 cars last year as sales slumped to 39,903 from 94,751 in 2008, but aims to raise production to pre-crisis levels of about 100,000 to 125,000 with the help of a new sales and distribution strategy.
Saab, which Spyker will run as a standalone company, will focus on three to four models: the 9-3, the new 9-5 and the new 9-4X sport utility vehicle for the U.S. and European markets.
It will look into adding a fourth smaller car line, the 9-1, but this model is not part of the business plan and additional financing would be needed.
Spyker said it is committed to the business plan, which was drawn up by Saab management over the past 10 months with the aim of becoming a performance-oriented niche car company.
Both Spyker and Saab are loss-making, however, and IHS Global Insight auto analyst Ian Fletcher said in a note one of the key issues will be the ongoing cash situation of Saab. "It remains to be seen whether this risk will pay off," he said.
Spyker CEO Victor Muller has said that restoring confidence in the Saab brand and regaining lost customers is a key to its future.
One of Muller's first tasks, however, will be to shore up financing for the $74 million cash part of the deal.
Spyker said the first instalment of $50 million consists of $25 million borrowed from a Muller investment vehicle, and $25 million from an issue of shares, largely to GEM Global Yield Fund Ltd.
A second instalment of $24 million - payable on July 15, 2010 - has not yet been funded.
"Spyker has been approached by various investors to fund this instalment. Spyker intends to finance this amount primarily through senior debt," the company said, adding it has pledged assets to GM as security for the final payment.
Muller told Swedish newspaper Svenska Dagbladet that the company had quite a lot of time to obtain the funding and had "many opportunities" to get the money.
(source - Automotive News) |
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General Motors Company and Spyker Cars N.V, today confirmed the details of a binding agreement over the transfer of ownership of Saab Automobile AB of Trollhättan, Sweden.
The transaction is expected to close in February and Saab Automobile will exit the orderly wind down process in line with that timetable.
The transaction will be accomplished as follows:
Spyker acquires from Saab Automobile Investering AB, a subsidiary of General Motors ("GM"), all the issued and outstanding ordinary shares in the capital of Saab Automobile A.B. ("Saab") for a consideration of USD 74 million ("Purchase Price").
The Purchase Price will be paid in two instalments. The first instalment of USD 50 million will be paid on the date of completion of the transaction, expected to take place on or before February 15, 2010 ("the Closing"). The second instalment of USD 24 million will be paid on July 15, 2010.
The Share Purchase Agreement is subject to the execution of a EUR 400 million loan agreement between Saab and the European Investment Bank ("EIB"), guaranteed by the Swedish Government. Today, the Swedish government announced approval of this guarantee. The guarantee is subject to approval by the European Commission, which is expected shortly.
Upon completion of the transaction GM will retain redeemable preference shares of USD 326 million. The preference shares represent less than 1% of the voting rights in the capital of Saab. The mandatory redemption date is 31 December 2016 and Saab has the right to request voluntary redemption at any time prior to this date. The preference shares carry a dividend entitlement of 6% starting from January 2012, increasing to 12% as from July 1, 2014. The dividend over 2012 will be added to the principal, but as from January 1, 2013 the dividend is payable in cash. Should Saab have insufficient distributable reserves to pay the cash dividend it will be added to principal increased with a penalty factor.
In order to allow Saab to operate on a stand-alone basis outside GM, Saab and GM will enter into a number of ancillary agreements. As part of the transaction, Spyker intends to negotiate the acquisition of all the outstanding shares in Saab Great Britain Limited, the UK distribution, marketing and sales company for Saab from General Motors UK Limited.
Spyker will issue a corporate guarantee not exceeding USD 10 million for Saab's obligations to and for the benefit of the financing company GMAC.
Spyker will as soon as practically possible convene a general meeting of shareholders to approve the transaction. Spyker obtained irrevocable voting undertakings to vote in favour of the transaction representing the voting majority of its current shareholders.
It is the intention to change the name of Spyker Cars N.V. at that general meeting of shareholders to Saab Spyker Automobiles N.V.
As back-up financing, Spyker entered into a EUR 150 million Equity Credit Line Facility with GEM Global Yield Fund Limited ("GEM") for a term of 3 years. According to this facility, Spyker may issue shares to GEM at 90 per cent of the volume weighted average price of the shares over a period of 15 trading days following a draw down notice sent to GEM by Spyker. In relation to the GEM facility, Spyker has issued to GEM share warrants in respect of 1,570,000 ordinary shares at an exercise price of EUR 4 per ordinary share. The warrants have a 5 year term.
The object of acquisition
In spite of media reports that certain parts have already been sold off, the object is Saab as a complete entity and going concern with all IP rights, trademarks, facilities and other infrastructures. The sale of pre 2003 Saab 9-3 and current Saab 9-5 technology to BAIC in December 2009 did not result in any part of Saab's business being divested or devalued. On the contrary, Saab has already started the production of the new generation Saab 9-5 in Trollhättan.
Both Saab management and Saab GB management prepared an estimated balance sheet as at 31 December 2009 for the purpose of this transaction. These estimated balance sheets are still subject to final account closing and audit procedures.
Spyker Cars does not yet have a balance sheet as at 31 December 2009 ready for reporting purposes. As such, it would be premature to show a pro-forma combined balance sheet for Spyker, Saab and Saab GB as at 31 December 2009.
Therefore Spyker only disclose an indicative combined balance sheet of Saab and Saab GB as at Closing date based on the estimated balance sheets for both entities as at 31 December 2009, adjusted for the impact of the transaction items as at Closing date.
It should be noted that the indicative closing balance sheet is based on the latest estimated balance sheets of both entities by Saab and Saab GB management which are subject to final closing and audit procedures and therefore subject to change, and does not reflect any potential fair value or purchase price allocation adjustments. The indicative closing balance sheet should therefore not be considered as the actual closing balance sheet, but only as an indication for the assets and liabilities to be acquired at closing date.
Saab's and Saab GB's combined revenue amounted to some EUR 1.0 billion in 2009 (2008: EUR 1.6 billion). Earnings before interest, taxes and depreciation amounted to EUR 0.4 billion negative in 2009 (2008: EUR 0.3 billion negative). In 2009 Saab sold 39.903 cars and produced 20.791 cars versus selling 94.751 cars in 2008 and producing 89.086 cars.
RESTRUCTURING AND MANAGEMENT BUY-OUT
As from Closing of the Saab acquisition, the ownership structure of Spyker will change as follows:
Tenaci Capital B.V. ("Tenaci"), a company wholly owned by Mr. V.R. Muller has made a successful bid on Mr. V. Antonov's current shareholding in Spyker consisting of 4.6 million ordinary shares. As agreed in 2007, when Mr V. Antonov acquired his shares in Spyker, Mr. V. Antonov will cause the transfer of the priority share to Spyker if and when he would dispose of his shareholding. A resolution to cancel the priority share will be proposed at the upcoming EGM.
Messrs. N. Stancikas, M. Bondars and Mr. V. Antonov will retire as members of Spyker's Supervisory Board effective as per the date of Closing.
Tenaci will grant to Spyker two loans. One for an amount of USD 25 million towards payment of part of the Purchase Price for Saab upon completion of the transaction. A second loan for an amount of EUR 57 million for repayment of all of Spyker's current outstanding loans to banks and other financial institutions controlled directly, or indirectly by Mr. V. Antonov. This loan mirrors the existing terms (including the lender's right to convert EUR 9.5 million into ordinary shares at a conversion price of EUR 4.00 per share).
The sale will be subject to customary closing conditions, including receipt of applicable regulatory, governmental and court approvals. Other terms and conditions specific to the sale are not being disclosed at this time.
Victor R. Muller, Spyker's CEO, stated: "We are very much looking forward to being part of the next chapter in Saab's illustrious history. Saab is an iconic brand that we are honoured to shepherd. We are delighted to have secured the jobs and livelihoods of thousands of loyal Saab employees, suppliers and dealers and to have given reassurance to the 1.5 million Saab drivers and enthusiasts around the world. It was breathtaking to see so much support from the global Saab community over the last months which not only shows the strength of the brand but also helped us in our relentless determination to get the deal done."
"Spyker Cars will provide Saab with the backing required to compete as a competitive global brand along with an entrepreneurial leadership team sensitive to the uniqueness, heritage and individuality of the Saab brand. I would like to extend my sincere gratitude to Vladimir Antonov for his formidable support during the past two years. His contribution has allowed Spyker to get to the point that this transaction was made possible. I also want to extend my gratitude to Messrs. Stancikas and Bondars as Members of the Supervisory Board. They have made very valuable contributions to our company during their respective terms."
"Finally I would like to thank the Swedish Government for its constant support for our efforts culminating in granting the Guarantee in favour of the European Investment Bank today for an EUR 400 Million loan to Saab which we hope to secure in the coming weeks."
Jan Åke Jonsson, CEO of Saab Automobile AB said: "It has been a challenging 15 months for Saab but our global organization has shown a fighting spirit that will serve us well going forward. The agreement with Spyker Cars has secured Saab's future and will enable us to maximize the brand's potential through an exciting new product line-up with a distinctly Saab character."
"Today's news is great for Saab's customers, dealers, suppliers and employees around the globe. The level of passion and support shown to Saab over recent months has been remarkable and I would like to take this opportunity to thank all of those people who continued to believe that Saab deserved a future. Now we aim to get back to the execution of our business plan and with the continued support of our employees and business partners I am confident we will succeed."
Nick Reilly, President GM Europe, added: "As a responsible corporate citizen in Europe, and throughout the entire period, GM has always had the hope to find a positive solution for Saab that would avoid a wind-down of the brand. We have worked very hard with many parties, including governments and investors, and I'm very pleased that we could come to such a positive conclusion that preserves jobs in Sweden and elsewhere. GM will continue to support Saab and Spyker Cars on their way forward."
(source - Automotive News) |
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Spyker nears outcome in talks with GM to buy Saab
Dutch luxury car maker Spyker Cars said on Thursday it is nearing an outcome in its talks to buy Saab from General Motors Co., although it gave no indication as to how the talks were going.
Spyker CEO Victor Muller told Reuters via a text message on Thursday that it was "likely" that it was now in exclusive talks with GM.
GM had nominated two wind-down supervisors for Saab last week, but at the same said it was considering several bids for the company, effectively keeping the future of the Swedish carmaker hanging in the balance.
Muller told Reuters that talks with GM were ongoing and the "outcome will be clear very soon," adding later that news could come in the next few days.
Although Muller warned the "outcome is still unpredictable" in its 11th-hour effort to save the Swedish brand, there are indications that Spyker could be further along in its talks with GM than its rival bidders.
Spyker is battling against another bid for Saab from investment firm Genii Capital, which is backed by Formula One mogul Bernie Ecclestone.
But a source close to the Genii-Ecclestone bid said there had been no further discussions with GM or its advisers since last week, when the group submitted a revised offer.
The source said a statement concerning the status of the group's bid could be published later on Thursday.
"The situation is on hold," the source said, adding that GM could be in exclusive talks with Spyker.
Asked if he could confirm whether Spyker was in exclusive talks with GM, Muller said via text message he was unable to confirm it, but added that it was "likely."
There has been no official indication of a deadline for a deal and a GM Europe spokesman said talks regarding Saab's future are continuing. He did not comment further.
Genii Capital had earlier said this week it remained hopeful about its chances of buying Saab, as liquidators had yet to start dismantling the firm.
On Sunday, Muller denied reports that Genii Capital and Spyker were making a joint bid for Saab.
GM, which lost $88 billion between 2005 and 2008, was bailed out by the U.S. government in return for a pledge to restructure. It is cutting capacity in Europe by a fifth, and shedding 8,300 jobs.
GM's labor and capacity cuts at its European operations saw it announce earlier on Thursday that it will it shut an Opel plant in Antwerp, Belgium, with the loss of 2,600 jobs.
(source - Automotive News) |
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Spyker says it's still talking with GM to buy Saab
Spyker Cars said it was still in talks to buy Saab from General Motors Co. while giving no indication of when a deal might be clinched.
The future of Saab is hanging in the balance after parent GM appointed two wind-down supervisors last week but, at the same, said it was considering bids for Saab.
Spyker CEO Victor Muller told Reuters on Monday that talks with GM were continuing, adding it was "unclear when we will be done." He did not say whether GM had imposed a deadline for a deal to be sealed.
A GM Europe spokesman had earlier said GM was still in talks about Saab, but did not say whether GM was talking to one or several buyers.
The negotiations between GM and Spyker, a Dutch maker of luxury sports cars, come after more than 500 Saab enthusiasts drove in conveys in the Netherlands Sunday to support the brand.
Also on Sunday, Muller denied reports of a joint bid for Saab with another bidder, the investment company Genii Capital, whose offer is backed by Formula One boss Bernie Ecclestone.
(source - Automotive News) |
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Saab boss Jonsson and entire board to be replaced
Saab Managing Director Jan Ake Jonsson and the carmaker's entire board will be replaced immediately as parent General Motors Co. continues with the wind-down of the Swedish automaker.
Despite the management change, GM continues to assess bids for the money-losing brand, the U.S. automaker said in a statement Tuesday.
Stephen Taylor and Peter Torngren of restructuring firm AlixPartners have been appointed as Saab's wind-down supervisors. Last Friday, GM named AlixPartners to run Saab's liquidation, which is expected to take several months.
Jonsson will remain with the company and assist the supervisors, a GM spokesman said, however it currently is unclear what role the longtime Saab executive will play in the process.
Jonsson was named managing director of the company in March 2005. He has been with Saab since 1973.
Pressure on bidders
GM is taking the required steps to close Saab as it puts pressure on bidders to sweeten their offers for the 60-year-old automaker.
GM executives said on Monday none of the bids received so far had met the financial requirement for a deal and signaled they were moving ahead with plans to wind down Saab.
"We're closing down Saab," GM Chairman and acting CEO Ed Whitacre told reporters on the sidelines of the Detroit auto show.
GM Vice Chairman Bob Lutz said: "The offers we've received so far in terms of risk and financing up-front have been just as good as winding it down."
In the same conversation Lutz said that GM remains open to offers from potential buyers, even though time is very limited.
Saab spokeswoman Gunilla Gustavs added late Tuesday: “There is still the possibility that the negotiations on the bids will result in a decision to sell Saab in its entirety.”
Luxembourg-based investment firm Genii Capital aims to make a better offer for Saab, a company spokesman said on Tuesday.
Dutch luxury carmaker Spyker Cars NV and a group of Swedish investors also are trying to convince owner GM to sell Saab instead of shutting it down.
Spyker last week said it had submitted an improved bid for Saab.
Reuters contributed to this report
(source - Automotive News) |
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GM says Saab is closing as no viable bid yet!!
General Motors Co. sent its clearest signal yet on today that none of the bidders for Saab had submitted an offer that would prompt the automaker to reverse a decision to shut down the Swedish luxury brand.
"We're closing down Saab," GM Chairman and acting CEO Ed Whitacre told reporters on the sidelines of the Detroit auto show. "We're winding it down."
GM Vice Chairman Bob Lutz said that the U.S. automaker would press ahead with closing down Saab unless a new bid emerged that was "financially better for us than the wind-down."
GM hired AlixPartners, the restructuring firm that assisted in its U.S.-government backed bankruptcy last year, to handle the wind-down of Saab.
"The offers we've received so far in terms of risk and financing up-front have been just as good as winding it down," Lutz told reporters.
GM listening to offers
Lutz said that any bidder now has a limited time to come forward with an offer that would cause GM to reverse its decision. "We're listening," he said.
GM says it has received several offers for Saab.
Dutch luxury sports car maker Spyker and a consortium of Formula One supremo Bernie Ecclestone and European investment company Genii Capital are among Saab bidders.
Saab has been consistently unprofitable in the 20 years that it has been controlled by GM.
Lutz said the U.S. automaker had been wrong to assume that "something would come along" to change its financial performance.
"For years GM has been procrastinating when it comes to Saab," Lutz said. "I'm glad to see that for once GM is sticking with a decision to wind something down."
Saab, which GM has controlled since 1989, posted a loss of $340 million in 2008, and is projected to post a similar loss this year.
GM's attempts to integrate the brand into its global line-up limited Saab's appeal to enthusiasts who liked its early hatchback styling and turbo-charged engines.
Spyker last week said it had submitted an improved bid for Saab.
Ecclestone's bid will have money ready
Ecclestone and Genii Capital will soon have initial financing to show GM they can fund a purchase of Saab, Swedish daily newspaper Dagens Industri reported on Monday.
The paper said Ecclestone and Genii would have 500 million to 1 billion crowns ($90 million to $180 million) in an account in a couple of days.
Joran Hagglund, Sweden's state secretary for industry, was in Detroit on Monday for a meeting with GM management on the latest developments on Saab, representatives said.
Saab employs about 3,400 in Sweden. The Swedish government has announced public funding to help offset the economic loss from its closure.
Saab sold just over 93,000 units in 2008, accounting for 1 percent of GM's global sales volume.
U.S. sales for Saab cars dropped almost 64 percent in 2009.
(source - Automotive News) |
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