Volvo Deal Sparks Chinese Business Practice Debate In Sweden

Responding to calls by Volvo’s unions for an investigation of Geely, Volvo management is calling the unions’ statements “almost xenophobic.” CEO Stephen Odell, and Personell Manager Björn Sällström of Volvo Cars have sent out letter to their empolyees, urging to modify their attitude towards their potential new employer, Geely. The letter is a response, not only to the unions’ public demand for a Geely investigation, but also the fact that these statements have sparked quite an anti-Chinese-business-methods campaign in readers’ letters to Swedish medias.

Read more
Jakob Consortium Joins Volvo Bidding
As posted earlier, the American based Crown Consortium finally made an offer, said to be on par with Geely’s, perhaps calculating that Ford will prefer an American buyer to the Chinese. According to Swedish business site di.se Roger Holtback of Crown confirmed to tt.se [sub] that the Crown Consortium has made an offer on Volvo. Geely still has the edge, though: according to Ford Spokesman John Gardiner to Wall Street Journal, Geely is still the “preferred bidder.” But that doesn’t mean it’s exclusive.
Read more
Saab Sale: Does Koenigsegg Have a Card Up Its Sleeve?

Bård Eker, the Norwegian partner in Koenigsegg Automotive, and Koenigsegg Group, appeared as one of the guests on Friday night’s regular Swedish/Norwegian talk show “ Skavland” this weekend (the following, translated conversation starts at 27:09). Mr Skavland, first talking a bit about Eker’s feelings about the broken deal, and how he felt visiting Trollhättan talking to Saab employees after the deal broke, he then asked Eker: “Is there a tiny chance you’ll try again? Saab isn’t sold yet…!” Eker smiles and answers “…we’ll see. Maybe!” laughing, shrugging his shoulders, audience cheering. Skavland: “how would you wanna do it?” Eker: “I don’t know…Seriously – we haven’t given it much thought. We’ll see…perhaps there’s a new opportunity. Maybe someone’ll give us a phonecall” Skavland: “So it’s not definitive that you’re out of the game?” Eker – laughing, glancing at his watch – “..err..how long is this show?” Skavland says: “So, you’ll still want a Saab?”, Eker: “yeah, sure” Skavland: “Alright….?” and shifts to another subject. All the while Eker has a cunning smile on his face.

Read more
BAIC Buys Saab 9-5 Tooling

A few days ago I captured some news from Swedish Aftonbladet.se that Beijing Auto (BAIC) is buying Saab’s now to be replaced 9-5 technology. Even though the Koenigsegg-Saab deal fell apart, and BAIC were a part of the investor group, the Chinese has not given up the idea to build Saabs in China. At the time I couldn’t find any other reports on this, and wondered wether Aftonbladet had done some creative journalism, but yesterday, Nyteknik.se reported the same news, citing their own sources. They’ve even confronted Saab’s spokesperson Gunilla Gustavs, but of course she can not, will not comment on that.

Read more
Saab, Unsaved

It’s the day after the Saab-bomb exploded in Sweden, and the media are pouring all over it. Of course, all kinds of “car experts” and “auto analysts” are having their say. Saab workers are expectedly sad and disappointed. And everybody’s blaming everybody and anybody. The unions blame the government, the government blames Koenigsegg, Koenigsegg Group are blaming time and bureaucracy, and the public is generally pretty pissed off with GM. And it all seemed to have come as julekvelden på kjerringa. But what on earth happened? Who pulled the plug? Who said enough is enough? And why now, all of a sudden? The EIB loan was allegedly just around the corner. Will anyone else buy Saab? What about the Swedish government? GM? Does anybody even care? Well, the 500 or so who bought a new Saab in October care – what about their warranties?

Read more
Saab To Die Another Day
Of course, that day could come as soon as next week, when GM’s board holds its monthly meeting. And unless a serious bid shows up post-haste, Saab will…
Read more
Swedish Government: Saab's Books Were Cooked

Looks like GM may have done some creative accounting after all – at least according to Swedish Government and their consulting firm KPMG. As we’ve reported the last couple of days, Saab’s rescue has been hanging by a thread due to questions around the company’s financial situation prior to the start of the financial crisis. Saab needs the EU to approve the Swedish Government’s guarantee of an EIB loan to Koenigsegg group if the deal is going to go through. If Saab, during the summer of 2008 – when the financial crisis started – were not in sound financial condition, the EU cannot, will not, approve Swedish government’s guarantees to the EIB loan, and the loan will not be granted. And reports from di.se yesterday almost laid that possibility to rest, with reports that GM had lost $ 5.100,- on each Saab-car sold during the last 8 years. Now, as commentator dlfcohn and others at ttac, as well as several commentators at di.se have pointed out, creative accounting can be useful in major corporates i.e to avoid taxes in tax-heavy countries. This, apparently (at least according to Swed.gov’t/KPMG) was the case with GM/Saab.

Read more
GM Lost $5k On Every Saab Sold In The Last 8 Years
Swedish business site di.se has done some numbercrunching , and figured out that GM has lost SEK 35,000,- (eq aprox $ 5,100, at the current exchange rate) o…
Read more
Saab Deal Going The Way Of Opel?

Saab has not had an easy path to salvation. The Koenigsegg Group has had to provide finances, agree to a price and conditions with GM, get loan from European Investment Bank (EIB),and coax the Swedish Government into guaranteeing loans. Now there’s one more hurdle left, and it’s the same challenge that scuppered the Opel to Magna deal: The EU.
Reports of recent weeks in the Scandinavian media have told us that the EU is thinking the Saab deal over. And when mighty EU thinks, things take time… So, what are they thinking about? They have to decide whether Swedish Govt’s guarantees to SAAB’s loan in the European Investment Bank should be considered subsidies or not. EU countries are not allowed to subsidize unprofitable companies – and the EU has some questions on SAAB’s and Koenigsegg Groups financial plan, and Saab’s results prior to the reconstruction. So the whole thing might stretch into next year until – or if at all – the deal is closed. Incidentally, questions about the anti-competitive nature of the German government’s support of the Opel to Magna deal killed that sale already. But does GM want Saab back as badly?

Read more
  • Analoggrotto Kia EV9 was voted the best vehicle in the world and this is the best TOYOTA can do? Nice try, next.
  • 3-On-The-Tree 4cyl as well.
  • Luke42 I want more information about Ford’s Project T3.The Silverado EV needs some competition beyond just the Rivian truck. The Cybertruck has missed the mark.The Cybertruck is special in that it’s the first time Tesla has introduced an uncompetitive EV. I hope the company learns from their mistakes. While Tesla is learning what they did wrong, I’ll be shopping to replace my GMC Sierra Hybrid with a Chevy, a Ford, or a Rivian — all while happily driving my Model Y.
  • 3-On-The-Tree I wished they wouldn’t go to the twin turbo V6. That’s why I bought a 2021 Tundra V8.
  • Oberkanone My grid hurts!Good luck with installing charger locations at leased locations with aging infrastructure. Perhaps USPS would have better start modernizing it's Post offices to meet future needs. Of course, USPS has no money for anything.