GM Announce Tentative Agreement to Sell Saab to Koenigsegg

[mikeyb]

http://img.worldcarfans.com/2009/4/large/428854398.jpg

After the February announcement that General Motors was planning on dumping Saab, the American parent appears to have come to terms with a suitor. supercar manufacturer Koenigsegg has agreed to take on the Swedish brand.

Both parties have signed a memorandum of understanding, with anticipation of the deal closing by the end of September. Terms of the deal include $600 million in financing provided by the European Investment Bank, and secured by the Swedish government.

Saab operations will continue in full, thanks to funding from both Koenigsegg and GM. Because of this, Saab intends to continue with the launch of "several new products that are in the final stages of development." In addition to GM continuing to provide platforms for the time being, Saab plans on building the next generation Saab 9-5 in Trollhättan, Sweden. The new 9-5 is due for a Frankfurt introduction later this year. The larger 9-5 should be about six inches longer, with a wide variety of powerful engines, all-wheel drive, and LED taillights.

What is uncertain is if these future plans include bringing the Saab Quant electric concept closer towards production. Koenigsegg is believed to be excited about the 500 kilometer-range vehicle's potential, especially considering its reported recharge time of 20 minutes.

The supercar manufacturer also plans to ramp up Saab production to 150,000 units per year by 2011, up from 20,000. That reason alone could have been enough to win the backing of the Swedish government, as jobs that could have been at risk now have a better chance of being safeguarded, provided the outcome of Saab's in-court reorganization.

With this sale moving forward, Koenigsegg will be keen to avoid mistakes made by other manufacturers in the past. The merger between Daimler and Chrysler saw the combination of a performance vehicle automaker with a volume seller. Significant problems arose when the German car company showed strong reluctance at sharing technology with their high-volume American counterpart.

Of the deal, Saab Managing Director Jan Åke Jonsson said, "Today's announcement is great news for Saab's current and future customers, dealers, suppliers and employees around the globe."
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[CWPspeed3]

common twin supercharged 9-3!

[seanmcsean]

I'm 100% ok with this.

Before GM, Saab was known for producing cool weird little Swedish cars.

Kooenigsegg makes awesome weird supercars.

Let's see what this marriage creates!!!

[mikeyb]

Did you all know that Volvo owns a small stake in Koenigsegg?

[TinmanMS6]

Did you all know that Volvo owns a small stake in Koenigsegg?

Very, very small. Like $1000 or so.

[TinmanMS6]

I'm very curious to see what the plan for Saab looks like. Hopefully some of the supercar technology goes a bit mainstream to make some very cool cars.

[mikeyb]

Very, very small. Like $1000 or so.

yea very small.

[mikeyb]

http://www.blogcdn.com/www.autoblog.com/media/2009/06/koenigsegg-ccx-meets-saab-aero-x.jpg (http://www.autoblog.com/photos/koenigegg-meet-saab-saab-meet-koenigsegg/2087285/)

http://www.blogcdn.com/www.autoblog.com/media/2009/06/koenigsegg-ccx-meets-saab-aero-x-2.jpg (http://www.autoblog.com/photos/koenigegg-meet-saab-saab-meet-koenigsegg/2087284/)

http://www.blogcdn.com/www.autoblog.com/media/2009/06/koenigsegg-ccx-meets-saab-aero-x-1.jpg (http://www.autoblog.com/photos/koenigegg-meet-saab-saab-meet-koenigsegg/2087286/)

Although the deal to purchase Saab (http://www.autoblog.com/2009/06/16/officially-official-koenigsegg-reaches-agreement-to-buy-saab/) between Swedish supercar maker Koenigsegg and General Motors has not yet been completely finalized, that hasn't stopped us from openly pining for a production version of Saab's gorgeous Aero X concept car of 2006 (http://www.autoblog.com/2006/02/28/video-and-live-shots-saab-aero-x-concept/). And now that we have pictures of the showstopper adjacent to one of Mr. Christian von Koenigsegg's own gorgeous creatures, well... it may just be enough to keep us awake at night. We're not sure where these two-door millionaire's coupes got together for this photoshoot, but judging from the snow on the ground, we wouldn't rule out the motherland.

While it's way too early to tell if Saab's new ownership situation will help get the automaker out of the woods it has seemingly been lost in for years, we can't help but at least get a little excited when seeing these two together.

[TinmanMS6]

Saab is planning a return to its old-brand values with an extended model range as it prepares for a new, independent future owned by a joint U.S.-Scandinavian investment team.

Swedish supercar maker Koenigsegg grabbed headlines as the buyer from General Motors, but Koenigsegg is just one of at least three major investors. The others are West Coast entrepreneur Mark Bishop and Norwegian holding company Eker Group.

So far, Christian von Koenigsegg has been the consortium’s point man on the deal, but he has given little detail on exactly how the new Saab will be organized and financed, apart from hinting that the GM-led Saab lost its brand focus.

What we do know is that there is a $600 million loan on the table from the European Bank and that GM has pledged an additional $500 million, to fuel future product development. This will revolve around a model range based on three GM platforms for the next decade--Epsilon 2 for the next 9-5, Theta/Epsilon 2 for the all-new 9-4X and Delta 2 for the next 9-3.

Meanwhile, the Swedes will feed back to Detroit their expertise on hybrids and the cross-wheel-drive AWD transmission. The sophisticated Haldex setup is now in the 2010 Cadillac SRX, due out in late July. The primary focus, however, is to get the 9-5 sedan into production by next summer. That can’t come a day too soon, since the current 9-5 is 13 years old.

But starting production--in Sweden--could prove to be a major hurdle. The 9-5 is a long-wheelbase version of the new Opel Insignia, which is partially tooled for assembly at Opel’s plant in Russelsheim, Germany. Those production lines will have to be taken apart, transported from Germany and rebuilt in Sweden.

A picture of The 9-5 sedan is spied. Brenda Priddy & Co. The 9-5 sedan is spied.
Saab’s business plan is reasonable, based on minimum production of 130,000 units a year, or about what Saab built in 2006. Strong profitability will come at 150,000 units or more. The company sold 93,000 cars in 2008.

Cutting the GM apron strings should clean up Saab’s financial position. Last year, GM’s accountants said Saab lost $384 million, but the word from Sweden is that money from sales in the States never came back to the homeland, making the company’s financial position look worse than it really was.

Will the future be so kind? Porsche has made a great business out of being a profitable car company with sales of 100,000 cars per year, but it sells most of its cars with higher sticker prices than Saab.

If Saab can get its post-GM products right--even if they are based on GM platforms--the company could be set up for a highly successful future.


http://www.autoweek.com/article/20090623/CARNEWS/906239997#ixzz0JHslwyQU&D

[Saskatchewan17]

Good, I hope post-GM Saab does well. And I hope they make that Aero X thingy.

[tunersteve]

I think this is a great move for Saab. GM dropped the ball with that brand, so let's hope that the new owners will pick up and bring back some solid sportiness to the brand.

I would really love a new Viggen line and a return of the Sonnett (Aero X)

[TinmanMS6]

General Motors Co. reached a deal Tuesday to sell its money-losing Swedish subsidiary Saabto Koenigsegg Group AB.

The companies signed a stock purchase agreement that would give the tiny Swedish supercar maker 100 percent of Saab's shares, GM Europe said in a statement.

"This contract is an important step in the journey to a potential deal," GM Europe President Carl-Peter Forster said in the statement. "We will continue to work with all parties to define the final details and ensure a fast closure of the deal."

The agreement comes after weeks of uncertainty concerning the level of support for the bid from Koenigsegg's backers, after a preliminary deal for the sale was struck in June.

Figuring out the finances

The Swedish government is negotiating with Koenigsegg on a possible guarantee for a loan to Saab from the European Investment Bank.

Forster said that the deal is contingent on this funding being arranged.

Sweden's industry ministry said several steps remained to be taken before a transaction could be concluded.

"The Koenigsegg Group will inject more private capital, negotiate loans with the European Investment Bank and agree with the Swedish National Debt Office on the terms for possible state loan guarantees," Joran Hagglund, industry ministry state secretary, said in a statement.

Swedish daily business newspaper Dagens Industri reported Tuesday that Koenigsegg Chairman Augie Fabela said 3 billion Swedish crowns ($413.6 million) of financing were still required in addition to the EIB loan.

Different timetables

Koenigsegg spokeswoman Halldora von Koenigsegg told Reuters on Tuesday that the firm expected to close the deal within about a month, while GM said it saw the deal closing by the end of the year.

As part of the proposed deal, GM and Saab will continue to share technology and services for a set time period. GM did not say how long the two companies would work together. GM and Saab will use license and service agreements to manager their future relationship.

In the GM Europe statement, Koenigsegg Group CEO Christian von Koenigsegg said his company plans to "transform Saab into a stand-alone vibrant entrepreneurial company and make it 'sustainable' by making it profitable."


Read more: http://www.autoweek.com/article/20090818/CARNEWS/908189998#ixzz0OXhkaUSq

[Kymerik]

Yay saab might stop blowing chunks of GM filthe...thank god