Tag: Koenigsegg

By on November 24, 2009

And ne'er the twain shall meet (courtesy:seriouswheels)

A press release [via sys-con.com] confirms that Koenigsegg has withdrawn from negotiations with General Motors over the sale of Saab. Fritz Henderson shares his disappointment:

We’re obviously very disappointed with the decision to pull out of the Saab purchase. Many have worked tirelessly over the past several months to create a sustainable plan for the future of Saab by selling the brand and its manufacturing interests to Koenigsegg Group AB. Given the sudden change in direction, we will take the next several days to assess the situation and will advise on the next steps next week.

Why did Koenigsegg pull out? A brief statement by Koenisgegg is all we have to go on at the moment. “The time factor has always been critical for our strategy to breathe new life into the company,” the firm tells Reuters. Which leaves… BAIC? Absent any other obvious interest in the Saab brand though, GM now finds itself with two messy restructurings in Europe.

By on November 17, 2009

(courtesy:saabhistory.com)

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) on each Saab sold the last 8 years. As many of TTAC’s readers have pointed out in various comments, GM never made money on Saab. Truth is; they lost a total of SEK 39 billion (3.9 billion Euros) during their ownership, according to di.se’s analysis . The last 8 years has been heavy; a loss of SEK 32,2 billion, or 35.000,- kronor on each Saab sold. That’s $ 5.100,- on each car. This year alone GM has had to take an SEK 6.2 billion cost on the ailing carmaker, SEK 5.2 of those are amortization of debts.  This is why it’s crucial for Koenigsegg Group that the EU commission rules that Swedish government’s guarantees on Koenigsegg’s loan from the EIB are not subsidies. But since Saab has been on life support for so long, it would be almost impossible to defend Saab as a healthy company, and without the Swedish government’s guarantee, the financial plan from Koenigsegg Group will fail. Maybe they can argue that when it comes to Saab, there are no subsidies, just business as usual.

By on November 16, 2009

saab_retro_photo

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…)

By on November 13, 2009

Born from Jets, killed with fire (courtesy:saabhistory.com)

Automotive News [sub] has more bad news for Saab dealers and customers. Saab’s prospective new owners have put the hit out on 81 of Saab’s current 218 US dealerships. If all goes according to plan, a measly 137 US Saab dealers will remain. Saab’s thin and uneven sales and service network has been an issue for the brand forever, and this isn’t going to make it any better. “The target date to close the sale of Saab is Nov. 30, but it could take until year end, says Mike Colleran, COO of Saab Cars North America in Detroit.” Don’t count on it.

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