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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)

Spyker said to be GM's only candidate for Saab purchase

DETROIT -- Spyker Cars NV is the only buyer under consideration for the Saab brand and is seeking to line up funding that will satisfy General Motors Co., a person with direct knowledge of the situation said.

Financing has been a main obstacle to a deal, said the person, who declined to be identified because the information isn't public. The proposal from Spyker, a Dutch sports car maker, had included a Russian partner that GM rejected, and Spyker was seeking to arrange financing that didn't include that partner, the person said. The person declined to be more specific about the Russian entity.

Spyker has been bidding for Saab after GM said last month it would wind down its money-losing Swedish brand after two decades of control.

Saab said last week that GM had extended a deadline to accept additional bids and that several potential buyers had come forward. A Saab spokesman last week would only name Spyker as a candidate, although media reports have also pointed to Merbanco Inc., a Wyoming-based group.

Spyker has until late Thursday to submit its revised bid, the source said today, and GM will probably issue a statement on Friday saying whether bids are still under consideration.

The Saab board meets that day to take the first steps toward liquidation, but a sale could still happen after those initial steps, the person said.

Spyker's persistence has boosted its credibility with GM, the person said.

GM spokesman Tom Wilkinson declined to comment on any negotiations. A spokesman for Spyker couldn't immediately be reached for comment.

GM put Saab up for sale a year ago in an effort to unload assets and avoid a Chapter 11 bankruptcy filing. Swedish supercar maker Koenigsegg Group AB had agreed to buy Saab but canceled the deal in November, four months after GM emerged from bankruptcy.

(source - Automotive News)

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)

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)

G.M. to Decide Saab’s Fate Next Week

General Motors said it could decide next week to close its Saab Automobile unit after the Swedish company that planned to buy the brand backed out.

It was the third time in less than two months that a sale of a G.M. brand has been called off, reflecting the difficulty of selling underperforming divisions in the midst of a global sales slump, Nick Bunkley writes in The New York Times.

G.M. said on Tuesday that its board planned to determine next week what to do with Saab. Closing the brand, as G.M. initially planned to do if it could not find a buyer, is a strong possibility, two people with direct knowledge of the company’s plans said. The people spoke on condition of anonymity because the board had not made its decision.

The other options for G.M. are to seek another buyer or keep Saab, though both those steps are considered less likely.

When Penske Automotive terminated its deal to buy Saturn in September, G.M. immediately announced that the brand and its dealerships would close.

Koenigsegg Group, which agreed to buy Saab in June, issued a statement attributing its decision to G.M.’s moving too slowly.

“The time factor has always been critical for our strategy to breathe new life into the company,” Koenigsegg said. “Unfortunately, delays in closing this acquisition have resulted in risks and uncertainties that prevent us from successfully implementing the new Saab business plan.”

Officials at G.M, who were caught off-guard by the deal’s collapse, denied responsibility. “We negotiated in good faith and we met all our timing obligations under the agreement,” a G.M. spokeswoman, Renee Rashid-Merem, said.

“We’re obviously very disappointed with the decision to pull out of the Saab purchase,” G.M.’s chief executive, Fritz Henderson, said in a statement.

Three weeks ago, G.M. backed out of a deal to sell its European operations, Adam Opel, to a Canadian parts supplier and Russian bank.

It has a tentative deal to sell Hummer to a Chinese industrial machinery manufacturer, but the Chinese government has not given its approval.

Meanwhile, the Ford Motor Company spent nearly a year shopping around its Swedish brand, Volvo, before entering into exclusive talks with the Chinese carmaker Geely last month.

John Casesa, an auto analyst with the firm Casesa Shapiro Group, said the collapse of the Saab and Saturn deals was more a symptom of the state of the automobile industry than of any missteps by G.M.

“Saab is a weak brand in a market where there are no buyers,” Mr. Casesa said. “Car companies are in no mood to buy anything and financial sponsors aren’t able to buy anything. Saab wouldn’t be an easy sale in a good market.”

Saab, which filed for bankruptcy protection in Sweden in February, has been a perennial money-loser and is among G.M.’s smallest brands, with sales of 93,000 vehicles worldwide last year.

It is on pace to sell fewer than 10,000 vehicles in the United States this year.

Closing Saab would cost G.M. considerably less than it is spending to shut down Saturn, analysts said, and failing to sell Saab is not expected to affect G.M.’s post-bankruptcy recovery.

G.M. paid $600 million for half of Saab in 1990 and $125 million for the rest in 2000. Terms of the deal with Koenigsegg have not been revealed, but it was contingent on $600 million of financing from the European Investment Bank and Swedish government guarantees.

Joran Hagglund, the Swedish secretary of state for industry, said on Tuesday that it was too early to know if it was the end of the line for Saab, but he said that there was no chance of the government stepping in.

(source - Automotive News)

GM sets end of road for Swedish brand Saab

General Motors said Friday it would shut down its Swedish auto brand Saab after talks failed to produce a buyer for the money-losing unit.

GM said in a statement it failed to reach an agreement with Dutch sports car maker Spyker on a sale of the division. This followed the withdrawal of a bid last month from Swedish sportscar maker Koenigsegg Group AB.

The Detroit automaker said that it had been in talks with Spyker but that "during the due diligence, certain issues arose that both parties believe could not be resolved."

"Despite the best efforts of all involved, it has become very clear that the due diligence required to complete this complex transaction could not be executed in a reasonable time," GM Europe president Nick Reilly said.

Reilly said that Saab "needed a quick resolution" to continue operations.

He added that GM "will work closely with the Saab organization to wind down the business in an orderly and responsible manner. This is not a bankruptcy or forced liquidation process."

The Swedish government expressed disappointment, but reiterated that it would not step in to save the iconic carmaker.

"It is very dismal. Very sad news for all of the employees and it comes at the worst possible time," Enterprise Minister Maud Olofsson told Swedish news agency TT.

Olofsson called a meeting between union representatives, authorities and the company to discuss the situation in Saab's hometown of Trollhaettan in southwestern Sweden on Monday.

But she reiterated the government's position that the Swedish state would not step in to become Saab's owner, saying it has no place owning car companies.

"We don't have that knowledge or the money," she said.

GM praised the Swedish's government's hard work in helping to facilitate a sale but declined to comment on why the deal fell apart.

"To be honest I cannot say and could not say there were any open points or issues that I don't think the GM team thought could not be resolved with the Swedish government," John Smith, GM vice president of corporate planning and alliances, said in a conference call.

GM said the move to end Saab operations was among "some very difficult but necessary business decisions" as the US auto giant tries to restore profitability after a massive bankruptcy restructuring aided by the US and Canadian governments.

The company has decided to end its Saturn and Pontiac brands in the United States and has reached a deal to sell its Hummer brand to a Chinese buyer.

The focus on core brands "will enable the company to devote more engineering and marketing resources to each brand and model," GM said.

GM said there would be no change in a plan announced earlier this week to sell some Saab assets to China's Beijing Automotive Industry Holding Co.

State-owned BAIC will acquire the technology for Saab's 9-3 and 9-5 car models, turbine engines and gearboxes, allowing the Chinese firm to develop its own-brand cars using the Swedish carmaker's technology.

GM said that in the wind-down of Saab, it would satisfy debts including supplier payments and would continue to honor warranties and provide parts to Saab owners around the world.

Swedish reaction to GM talks collapse

Saab employs some 3,400 people in Sweden and sold just over 93,000 cars worldwide in 2008.

Up to an estimated 15,000 jobs could disappear in a Saab shutdown, including those of suppliers and subcontractors, and if they also shut down that could pose a problem for Sweden's other carmaker Volvo, owned by US-based Ford Motor Co.

Under GM's stewardship spanning almost two decades, Saab rarely posted a profit and last year lost 3.0 billion kronor, the equivalent of 241 million euros, or 341 million dollars at the time.

Last month, GM reversed plans to sell its European Opel/Vauxhall division and to restructure those operations on its own. Analysts noted that Opel, unlike Saab, is integrated into GM's global operations.

Saab's history as an automaker dates back to the 1940s, when the first cars were produced by the Swedish aircraft maker Svenska Aeroplan Aktiebolaget or SAAB. GM acquired Saab Automobile in 1990.

(source - Automotive News)

Making its public debut at the IAA in Frankfurt, the all new Saab 9-5 sedan signals the start of a new era for the Saab brand. Sleek, sophisticated and unmistakably Saab, it combines stand-out looks with advanced technologies and will bring a fresh alternative choice to the premium sedan segment when sales start later in model year 2010.

The clean, sculpted shape embraces the purity of Scandinavian design and its dramatic wraparound window graphic echoes Saab’s aviation heritage. With frontal styling inspired by the award-winning Aero X concept car and a muscular, low-slung stance, the new 9-5 heralds the introduction of a bold, more expressive design language.
The array of high-tech features on offer includes: an aircraft-like head-up information display (Pilot HUD); adaptive lighting (Bi-Xenon Smart Beam); adaptive cruise control; Saab DriveSense adaptive chassis with real-time damping control; keyless entry and starting; tri-zone air conditioning; dynamic parking assistance and Saab XWD with a rear eLSD, the industry-leading all-wheel-drive system.

The all-turbo powertrain line-up starts at 1.6 liters and carries forward Saab’s rightsizing engine strategy, which focuses on responsible performance through the development of highly efficient and relatively small four cylinder turbo engines. There is a choice of three fuels - gasoline, diesel and E85 bioethanol and with diesel power, the new 9-5 offers CO2 emissions as low asn139 g/km.

This car is the start of a new era for our brand, says Jan Åke Jonsson, Saab Automobile’s Managing Director. We have created an advanced and very distinctive product by leveraging the power of our roots in key areas, such as progressive Scandinavian design, sporty driving and responsible performance. The new 9-5 delivers in all these respects, as will every future product from Saab.
(source - Automotive News)

General Motors Co. today confirmed it has signed a stock purchase agreement with Koenigsegg Group AB regarding the sale of 100% of the shares of Saab Automobile AB. The deal is expected to conclude in the next months and will then secure Saab’s future. Saab Automobile plans to exit legal reorganization shortly.

The stock purchase agreement will be subject to agreed closing conditions. Conditions to close the sale include expected funding commitments with Swedish government support and guarantees, as well as transitional assistance from GM, as Saab becomes independent. Saab is about to launch several new cars, developed with General Motors, that are in the final stages of development.

As part of the proposed transaction, GM and Saab will continue to share technology and services during a defined time period. This will be managed through licenses and service agreements.

"This contract is an important step in the journey to a potential deal, said Carl-Peter Forster, president of GM Europe. Saab's great cars, its unique design, safety- and engine-technology, as well as its excellent brand image, combined with Koenigsegg Group's unique combination of innovation and entrepreneurial spirit, bode well for a successful future for the brand. We will continue to work with all parties to define the final details and ensure a fast closure of the deal, which we expect to take place in the next few months. The closure of the deal is contingent on the funding commitment from the European Investment Bank (EIB), guaranteed by the Swedish government, Forster added.

"We have now concluded another important step in realizing the great potential of Saab, said Christian von Koenigsegg, CEO of Koenigsegg Group. Our plan is to transform Saab into a stand-alone vibrant entrepreneurial company and make it ‘sustainable’ by making it profitable. We will revive Saab’s Swedish heritage of ecological sensitivity, safety, design innovation and ‘fun to drive’ experience!"

Jan Åke Jonssson, Managing Director of Saab, said: This is excellent news for everyone connected to Saab around the globe. This is an important step to secure jobs and our long-term future as a Swedish carmaker. In the short-term, it will enable us to move forward with exciting new cars starting this month with the all new Saab 9-3X.

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