Toyota’s deal with Tesla was for the plant and some surrounding land. The sale specifically excluded any production equipment used to build the Pontiac Vibe/Toyota Matrix and Toyota Tacoma. Now, however, Tesla has announced that it will purchase $15 million of the plant’s equipment from Toyota and Motors Liquidation Company. What kind of hardware are we talking about? We don’t know and Tesla didn’t say, but if we were to bet, we’d probably put our money on painting equipment and robots.

[Source: Autoblog]

Fisker plans to build rechargeable batteries at the 3.2-million-square-foot assembly plant by 2012 but will initially use the facility to build its Nina model.

The sale of the plant should add a hefty $20 million boost to GM’s balance sheet for Q2 2010, which GM should report sometime next month.

[Source: Freep]

One year ago, General Motors announced that we were going to divest HUMMER, as part of focusing our efforts on Chevrolet, Buick, GMC and Cadillac going forward. We have since considered a number of possibilities for HUMMER along the way, and we are disappointed that the deal with Tengzhong could not be completed. GM will now work closely with HUMMER employees, dealers and suppliers to wind down the business in an orderly and responsible manner.

As we learned with the Saab Sales Saga, this may not mean anything in particular, as a last-minute buyer may swoop in to save the company from the automotive graveyard, where Saturn and Pontiac shamefully lie. Nevertheless, GM will continue to honor Hummer warranties as well as providing service support and spare parts to current owners around the world.

Stay tuned as it happens…

The approval was the last hurdle for the deal to go through, which would transfer ownership of the legendary American SUV brand to the privately-owned Chinese maker of special-use vehicles, structural components for highways, bridges, and construction equipment for only $150 million. This amount is nearly 70 percent less than GM originally valued the brand in bankruptcy court in the summer of 2009.

In the beginning of 2010, GM extended the deadline for the sale until the end of February.

Only Normal…

“It’s only normal for the Chinese government not to approve the deal,” said Lin Huaibin, a Shanghai-based analyst for IHS Global Insight. “To allow this type of vehicle on a large scale isn’t in line with government policy.” What government policy, exactly? In an effort to reduce oil imports and pollution, China has been encouraging automakers to produce more fuel-efficient cars such as hybrids.

Jobs

If approved, the deal was expected to secure nearly 3,000 Hummer manufacturing and sales jobs in the U.S. As of now, these jobs – including som at the Shreveport, LA plant – are in limbo.

Plans For Hummer

What’s interesting here is that both parties have agreed to the deal and want it to go through. Tengzhong has previously stated that its plans include bringing Hummer into markets outside the U.S., which currently makes up more than two-thirds of the brand’s sales. Tengzhong also planned to develop more fuel-efficient SUVs, according to CEO Yang Yi.

But Not All Is Lost…

The deal may still come to fruition even without approval from the Chinese government. This may happen by taking advantage of a few international loopholes. For what it’s worth,  reports of China’s government having blocked Tengzhong’s bid are “not accurate,” according to Wang Chao, assistant commerce minister. Apparently, China’s Ministry of Commerce has not yet received an application for the acquisition, Chao said.

Let’s hope this doesn’t turn into the Saab Sales Saga, round two.

[Source: BusinessWeek]

Hummer’s sale to Sichuan Tengzhong

The plan to keep Hummer manufacturing at the plant may bring with it the production of other brands at the facility, as Sichuan Tengzhong would only need 25 percent of the capacity for Hummer production. The Shreveport Times describes the plant as an “automotive mall with Hummer as the anchor tenant.”

Recently, incentives have been discussed with the involved companies. An exemption from sales tax on equipment and donated land for plant expansion are the in the cards. This, however, may not be enough to plan against the $40-200 million that have been estimated as layouts for plant upgrades. Plans to upgrade the facility are secondary to the Hummer deal, which has a ticking clock built in.

While a repeat of the Saab Sales Saga would be acceptable, the delays and back-and-forth waffling would sure be nice to avoid. At least this time The General won’t make any announcements to wind down the brand until the Chinese government approves of the deal.

[Source: Shreveport Times]

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!

PRESS RELEASE

Spyker Cars Finalizes Purchase of Saab Automobile from GM

Tengzhong signed a contract with GM to buy Hummer back in October 2009 and has been waiting for a green light from Beijing to approve the deal. This original contract expired January 31, 2010.

Rumor has it that Chinese powers-that-be aren’t content to acquire a gas-guzzling brand at a time when fuel-efficiency is all the rage. Tengzhong better work hard and speed up the Chinese bureaucratic process if it wants to get a taste of a global automotive brand. Cuz – you know – February is only 28 days long in 2010 – no matter where you are!

[Source: Reuters]

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.

The GM Authority Take

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:

• GM becomes a leaner company, gains some cash in the process, and walks away with its tail between its legs (but is still able to look Saab fans in the eye)
• Saab is saved – along with the all-new 9-5 and 9-4X, its 1000+ dealers, and 4000+ employees, while
• Spyker acquires a legendary brand with strong brand recognition and Saab’s excellent engineers.

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!

PRESS RELEASE

GM Reaches Agreement to Sell Saab to Spyker

DETROIT – General Motors and Spyker Cars NV today confirmed that they have reached a binding agreement on the purchase of Saab Automobile AB.

“Today’s announcement is great news for Saab employees, dealers and suppliers, great news for millions of Saab customers and fans worldwide, and great news for GM,” said John Smith, GM vice president for corporate planning and alliances.

“General Motors, Spyker Cars, and the Swedish government worked very hard and creatively for a deal that would secure a sustainable future for this unique and iconic brand, and we’re all happy for the positive outcome,” Smith said.

As part of the agreement, Spyker intends to form a new company, Saab Spyker Automobiles, which will carry the Saab brand forward. 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 will be disclosed in due time.

The Swedish government is at present reviewing the transaction and the related request for guarantees of a Saab Automobile loan that has been requested from the European Investment Bank. Assuming quick action, the transaction is expected to close in mid-February, and previously announced wind down activities at Saab will be immediately suspended, pending the close of the transaction.

“Throughout the negotiations, GM has always had the hope to find a solution for Saab that would avoid a wind down of the brand,” added Nick Reilly, president, GM Europe. “We’ve worked with many parties over the past year, including governments and investors, and I’m very pleased that we could come to such a good conclusion, one that preserves jobs in Sweden and elsewhere. GM will continue to support Saab and Spyker on their way forward.”

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About General Motors: General Motors, one of the world’s largest automakers, traces its roots back to 1908. With its global headquarters in Detroit, GM employs 204,000 people in every major region of the world and does business in some 140 countries. GM and its strategic partners produce cars and trucks in 34 countries, and sell and service these vehicles through the following brands: Buick, Cadillac, Chevrolet, GMC, GM Daewoo, Holden, Opel, Vauxhall and Wuling. GM’s largest national market is the United States, followed by China, Brazil, Germany, the United Kingdom, Canada, and Italy. GM’s OnStar subsidiary is the industry leader in vehicle safety, security and information services. General Motors acquired operations from General Motors Corporation on July 10, 2009, and references to prior periods in this and other press materials refer to operations of the old General Motors Corporation. More information on the new General Motors can be found at www.gm.com.

Saab background: Saab entered the auto business in 1949 with the first model 92. Its aerodynamic shape and advanced technology drew from the company’s roots as an aircraft maker, and helped create what was to become a loyal and passionate customer base. GM acquired a 50 percent stake in Saab in 1990, and acquired the balance of Saab in 2000. As part of its strategy to focus on its four strongest brands in the U.S., GM began seeking a buyer for Saab in January 2009, a concerted effort that led to today’s announcement.

Over the last few months,

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.

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.”