TRENDING NOW:
General Motors and Spyker Cars NV have announced today that they have finalized the deal for Spyker’s purchase of Saab.
This means that, going forward, Spyker has taken over the reins and has assumed full responsibility for the (not so much) Swedish automaker.
John Smith, GM Vice President For Corporate Planning and Alliances, had the following to say about the development:
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. This is a great day for Saab employees, dealers and suppliers, and a great day for millions of Saab customers and fans worldwide.
GM Europe President Nick Reilly also chimed in, saying:
Throughout negotiations over the past year, GM has worked with many parties, including governments and investors, to find a solution for Saab. I’m very pleased that we could come to a positive conclusion, one that presents a viable future for Saab and preserves jobs in Sweden and elsewhere.
And this will officially put an end to GM Authority’s coverage of all things Saab… starting immediately. Unless, of course, GM has a sudden change of heart and decides to buy the brand back. But we’re not holding our breath.
Check out the full press release after the break! (more…)
It’s over, done, finito! After months of negotiations, protests from Saab owners, and numerous ups and downs, General Motors just confirmed that it has reached a binding agreement to sell Saab Automobile AB to Spyker Cars NV.
Spyker has outlasted all other negotiators in this deal, including Koenigsegg, Genii Capital (backed by Bernie Ecclestone), and Merbanco. What’s more, Spyker’s persistence in tirelessly trying to work out a deal and submitting revisions upon revisions of bids – sometimes at the last minute – have all paid off. Ironically, Spyker also outlasted GM – which began winding down Saab in late 2009.
As part of the transaction, Spyker will form a new company called Saab-Spyker Automobiles that will be in charge of the Saab brand. The sale will be subject to customary closing conditions and regulatory, governmental, and court approvals.
Complete details of the deal have not yet been fully disclosed (GM says they will be disclosed in due time), but we’re hearing that Spyker paid $74 million in cash and provided GM another $326 million in proffered stock of the new Spyker-owned firm. The agreement is contingent upon the approval of a 400-million-euro loan from the European Investment Bank to Saab-Spyker. Vladimir Antonov, chairman of the Spyker board and the biggest backer of the Dutch exotic car maker, has agreed to step down and sell/relinquish his positions (although we’re not totally clear on this yet).
At the present, the Swedish government is in the process of reviewing the transaction. If everything goes according to plan, the deal is expected to close in mid-February. GM will immediately suspend Saab wind down activities pending the closing of the transaction.
How quickly things can change! Just yesterday, CEO Ed Whitacre wasn’t ready to announce a deal and even stated that wind down operations of the Saab brand are ongoing. This news is great for all parties involved:
Personally, I can’t wait to see what awesome new products a Saab under Spyker comes out with, but I’d bet that they’ll be better than those a GM-owned Saab ever dreamed of. Stay tuned to this week’s GM Authority Weekly Podcast for the team’s thoughts and analysis.
Check out GM’s full presser after the break!
Over the last few months, Saab’s future has been more uncertain than Britney’s mental status. But, like Britney, Saab appears to be on the upswing. A potential sale seems to be mere days away and production of two new models supports this hopeful and likely assumption. Media sources are reporting that production of the new 9-5 continues alongside 49 units of the new 9-4X crossovers. Wait, what’s that? More new models for a brand that is supposedly being shuttered seems a little unlikely.
Although the addition of any new models to the Saab lineup is shocking (the only truly new model for the brand since GM took over is the 9-3), the fact that production is continuing and growing point to a successful sale in the near future.
It was slightly surprising that CEO Whitacre did not announce a sale last morning at his press conference, maintaining the ambiguity surrounding the Saab sales saga. Barring another 11th hour pull-out, Saab will most likely go to Spyker, and will hopefully close in the next week.
During this morning’s press conference, GM CEO and Chairman Ed Whitacre announced plans to repay the company’s U.S. and Canadian government loans as early as June 2010. The General received $6.7 billion from the U.S. federal government last year.
Whitacre was very optimistic about The General’s future, citing a stabilized market share even after cutting its brand portfolio in half last summer. He also told reporters that GM is “well ahead of metrics outlined in our viability plan,” something that “makes all of us happy.”
After announcing his permanent appointment to the position of CEO, Whitacre gave a very succinct update on Saab, saying that talks with Spyker Cars are ongoing, but the two companies have no deal to announce as of this morning. Whitacre added that “as of today, we have not changed the direction on the wind-down of the operation.”
In what just may turn out to be a miracle, Spyker Cars has come one step closer to closing a deal to acquire Saab from GM.
According to Bloomberg, GM and Spyker officials met in Stockholm over the weekend to finalize details of a plan to sell the Swedish automaker to Spyker, and it looks like it’s the real deal this time.
For what it’s worth, Bloomberg is citing two sources close to negotiations that peg the net worth of Spyker’s offer for Saab at $500 million, made up of cash and stock. As part of the deal, Spyker would allegedly pay $75 million in cash and $325 million in preferred stock in exchange for Saab. It’s unclear where the remaining $100 million will come from.
But the purchase comes with strings attached, which – in this case – are made up of the following two contingencies. First up is Vladimir Antonov – a Russian businessman who serves as Spyker chairman and is also the largest investor in Zeewolde. Reportedly, he must leave Spyker for the deal to go through. Second is a loan from the European Investment Bank to Spyker-Saab that will be necessary for Spyker to integrate Saab appropriately.
Moreover, Genii Capital, backed by F1 tycoon Bernie Ecclestone, has formally conceded from the bidding, with Lars Carlstroem telling Bloomberg the following:
We have worked hard, unfortunately time was not on our side. We are pleased to hear about Victor [Muller, Spyker CEO] and his attempt to buy Saab. He’ll be a perfect owner for Saab going into the future.
Genii joins the growing list of bidders that have dropped out of the bidding process for Saab, including Wyoming-based Merbanco and Swedish exotic supercar maker Koenigsegg. China’s BAIC was the backer of the Koenigsegg deal, but when that fell through, decided to purchase $200 million worth of Saab technology and tooling for older Saab models such as the last-gen 9-5 and pre-2006 9-3. Meanwhile, production of the all-new 9-5 sedan has begun in Sweden.
Hit up the break for our legendary GM Authority take!
Earlier in 2009, GM announced plans to shut down 1,130 GM dealerships, a process it was hoping to complete by the fourth quarter of 2010. This “cutting the fat” can be attributed to the rocky economy and poor performance of some of the dealers that received the wind-down notice. Certain dealers complained (which was to be expected), leading GM to devise a plan that ultimately lead to arbitration. Well, it looks like there’s light at the end of the tunnel for a select few dealers.
In an interview, GM’s interim CEO and Chairman Ed Whitacre revealed that The General would in fact give a second chance to roughly one hundred dealerships that were told to pack up and go home. He stated that the methods used by GM to determine which dealerships would be resurrected (and which ones would not) were “pretty arbitrary,” and that they were “not perfect in every way.”
The arbitration rules put forth by law call for interested dealers to provide notice by Janurary 25, 2010. A judgment by way of arbitration would then be made sometime in June of 2010, ultimately sealing the fate of many dealership owners. On a positive note, Big Ed mentioned that – regardless of the number of dealerships that receive the OK to re-open – GM bean counters predict profitability in 2010. Now that gives us reason to breathe a big sigh of relief!
Whitacre also reminded reporters that Saab is still for sale and that anyone who wanted to buy the Swedish brand should just “show up with the money.”
Sounds tempting…anyone want to go half-zies?
For continuing coverage of GM’s Saab Sales Saga, dealer relations, and all things General Motors be sure to check in to GM Authority as often as humanly possible!
Last month, Saab and GM fans were equally outraged upon learning about the possibility that the all-new Saab 9-5 could wear a Buick badge. Since then, GM has still not reached a definite decision regarding Saab while the 9-5 has begun production in Sweden. But all is not lost, since Saab and GM enthusiasts alike would be glad to learn the following two arguments against a Buick-badged Saab 9-5.
If it were to wear to become a Buick, the all-new Saab 9-5 simply would not fit into the Buick line-up. The 9-5 is based on GM’s Epsilon 2 architecture – the same as the Buick LaCrosse and Regal. In fact, the 9-5 is only one inch shorter than the LaCrosse, which is most likely achieved by shorter bumpers rather than diminished interior space.
So what does that mean? Well, with the addition of the 9-5, Buick would have two sedans that are the exact same size inside and out! In that regard, there simply is not enough room for the 9-5 in the Buick line-up. Moreover, the last thing GM wants to do is confuse Buick buyers with two very similar products.
GM seems to be finished with the practice of badge-engineering altogether. This can be seen in The General’s decision against reintroducing the acclaimed Pontiac G8 under the Chevrolet brand, even though the enthusiast community supported the move to rebadge (and still does to this day). However, to say that GM is completely finished with rebadging wouldn’t be totally accurate. Afterall, the Buick Regal is a rebadged Opel Insignia while the Chinese-market Buick Excelle XT is an Opel Astra adorned with Buick light treatment and logos.
In the end, we can’t be completely certain that GM won’t end up selling the all-new Saab 9-5 as a Buick. But having two strong arguments against doing so definitely helps. At the very least, we’re certain that the GM enthusiast community is against such a move by a wide margin. What do you think?
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