Saab JMK Blog

Spyker and GM in last ditch Saab talks

Published: 21 Dec 09 17:52 CET

Spyker and GM in last ditch Saab talks

The head of Dutch sports car maker Spyker met with General Motors on Monday afternoon in a final attempt to convince the US auto company to sell Saab Automobile, the iconic Swedish brand facing an imminent wind-down.

"GM is holding new meetings with representatives for Dutch sportscar maker Spyker in Stockholm today," Swedish public radio reported on its website.

Spyker announced its renewed bid on Sunday, two days after GM broke off talks with the Dutch group and said it would begin winding down the iconic loss-making brand.

Spyker's new bid was to expire at 11pm CET on Monday.

"An announcement about the negotiations could be made during the day," Swedish radio said.

It said one of the main reasons GM had resumed talks with Spyker was that the Dutch group had addressed GM's hesitations over Spyker's Russian investors.

Swedish daily Svenska Dagbladet reported earlier on Monday that Spyker's main investors, Vladimir and Alexander Antonov, were no longer behind the Dutch group's bid for Saab.

SOURCE: AFP/The Local (the local)

Unions urge GM to review new Saab bid

Published: 21 Dec 09 07:31 CET

Swedish union leaders are urging GM to consider Dutch sports carmaker Spyker's new offer for Saab.

The head of the influential IF Metall union called on the US auto firm to examine the renewed bid for Saab, which employs about 3,400 people in Sweden.

"I understand the frustration felt by everyone who is dependent on Saab, to be thrown between hope and despair is terrible. GM must now respond with a serious examination of the new bid," union chairman Stefan Löfven said.

General Motors said on Friday that it would close Saab, based in western Sweden, after it failed to agree upon a sale with the Dutch carmaker.

The bid "demonstrates there is a significant interest" in Saab, Löfven said, calling on Sweden's centre-right government to get involved in the talks with GM.

GM has been trying to sell the unit since the beginning of 2009. Swedish luxury carmaker Koenigsegg, a company which builds around 18 cars a year, pulled out of a deal to buy Saab last month, citing costly delays.

Like Koenigsegg, Spyker is also a niche premium car manufacturer.

In 2008, it sold just 37 cars worldwide with prices starting at $290,000). Saab sold just over 93,000 cars worldwide last year.

According to media reports, Saab's closure could lead to more than 8,000 job losses, including subcontractors and others dependent on the carmaker.

Saab's history as an automaker dates back to the 1940s, when the first cars were produced by the Swedish aircraft maker Svenska Aeroplan Aktiebolaget or SAAB. GM acquired Saab Automobile in 1990.

Despite General Motors' announcement on Friday about its impending closure of Saab Automobile, Dutch sports carmaker Spyker saidon Sunday it had made a second purchase attempt.

"The Spyker leadership has submitted a renewed offer in the hopes of securing a future for Saab, its employees and the brand – despite the announcement that the winding down of Saab would begin," the company said in a statement.

Spyker said it hoped "the renewed offer would remove each of the obstacles that were standing in the way of a swift transaction."

"We have made every effort to resolve the issues that were preventing the conclusion of this matter and we have asked GM and all other involved parties to seriously consider this offer," said Spyker chief executive Victor Muller.

Muller said he was confident a deal could be done by the December 31 deadline set by GM to complete the sale. Spyker's new offer remains valid until 5pm Eastern Time on Monday (11pm CET), the company said.

SOURCE: AFP/The Local (http://www.thelocal.se/23958/20091221/)

Swedish crisis talks on Saab amid doubts over Spyker bid

STOCKHOLM — Swedish government officials and unions held crisis talks on Saab's fate on Monday as analysts expressed doubts about a renewed bid by Dutch sportscar maker Spyker for GM's loss-making unit Saab.

The meeting took place just hours before Spyker's new bid was to expire at 2200 GMT on Monday.

"We have to try every possibility to save Saab," Swedish Enterprise Minister Maud Olofsson told Swedish radio a few hours before the meeting, adding however that she was sceptical about Spyker's chances of succeeding in saving Saab.

Swedish government officials, Saab management, union representatives and local officials from Saab's hometown of Trollhaettan in southwestern Sweden were taking part in the emergency talks on the future of Saab, as well as that of the town of 55,000.

Swedish news agency TT reported GM officials would not be at the meeting.

GM has been trying to sell the loss-making unit since the start of the year.

Saab employs about 3,400 people in Sweden. According to media reports, Saab's closure could lead to more than 8,000 job losses, including subcontractors and others dependent on the carmaker.

But Saab's fate remained in limbo Monday after Spyker announced its renewed bid.

The surprise announcement came two days after Saab's American owners General Motors broke off talks with the Dutch group and said they would begin winding down the iconic brand.

One of Sweden's most respected auto industry analysts, Matts Carlsson, said GM was probably not interested in selling Saab at all, suggesting the US carmaker would rather shut down Saab because of fears over future competition.

"They are probably figuring that they would rather take the cost associated with shutting down (Saab) so as to not end up with competition in five, ten years," Carlsson told Swedish public radio Monday.

GM's reaction could be interpreted as a message to Saab employees "we don't want to have to face you in a future competition situation," Carlsson said.

GM decided earlier this year to hold onto German brand Opel after initial plans to sell it. Both Saab and Opel have in recent years been manufactured on the same platform.

Another analyst, Haakan Matson, was also sceptical about the new bid, noting that Spyker's new offer was only valid until 2200 GMT on Monday.

"That the buyer has set a time limit, is, according to me, strange and unserious," he wrote in a column in Swedish business daily Dagens Industri.

Swedish newspaper Svenska Dagbladet meanwhile reported Spyker's Russian investors Vladimir and Alexander Antonov were no longer behind the Dutch group's bid for Saab -- reportedly one of the sticking points in the negotiations with GM.

And Dagens Industri and Swedish news agency TT said Spyker was not the only bidder in the race for the brand.

They quoted Saab enthusiast website Saabsunited which said US investment firm Merbanco had also made a new bid for Saab with an unidentified Swedish consortium.

Merbanco was one of three firms, along with China's Beijing Automotive (BAIC) and US holding company Renco Group, identified as possible bidders for Saab after Swedish luxury carmaker Koeninsegg withdrew its bid for the brand on November 24.

GM rejected Merbanco's earlier bid, Dagens Industri said.

On Sunday, the heads of Sweden's influential IF Metall and Unionen unions, along with Sweden's main engineers' association, sent an open letter to GM's board.

"We believe that further alternatives should have been given more attention ... We appeal to the Board of General Motors to most thoroughly investigate the new initiatives," they wrote.

SOURCE: The Local

"nulla tenaci invia est via" - for the tenacious no road is impassable

ZEEWOLDE, The Netherlands (20 December, 2009) - Following the announcement on
Friday that the intended sales terms of Saab Automobile AB between Spyker and General
Motors (GM) could not be finalized, the Spyker leadership has submitted a renewed offer
in the hopes of securing a future for Saab, its employees and the brand - despite the
announcement that the winding down of Saab would begin.

Spyker CEO Victor R. Muller said today that an 11-point proposal had been submitted to GM, addressing each of the issues that arose during the due diligence process and that the renewed offer would remove each of the obstacles that were standing in the way of a swift transaction.

"We have made every effort to resolve the issues that were preventing the conclusion of this matter and we have asked GM and all other involved parties to seriously consider this offer," said Muller.

"We are very confident that our renewed offer will remove the impasse that was standing in the way of an agreement on Friday, and this would still allow us to conclude the deal prior to the expiry of the deadline originally set by GM of December 31st", said Muller.

"Despite our collective eleventh hour set-back, we are returning to the table with a renewed offer, that addresses every known issue brought to light during the initial negotiations and that has the full backing of the Saab Management. The new offer eliminates the need for an EIB loan approval prior to year end, for example, which will allow the deal to be concluded within GM's deadline.

Our efforts are based on our passion for saving an iconic brand that we would be honoured to shepherd, and the jobs and livelihoods of thousands of loyal Saab employees, suppliers and dealers around the world. Some 1,500,000 Saabs are on the road today and their proud owners would no doubt welcome the survival of this phenomenal brand", he added.

In Spyker's view, the ownership of Saab by Spyker Cars would add a lot of value to both parties. For Spyker, Saab would bring a strong, global distribution network consisting of no less than 1100 dealers, state-of-the-art production facilities, a truly dedicated work force and solid engineering, sourcing and research & development capabilities. Likewise, Saab would receive the financial backing required to compete as a competitive global brand, along with an entrepreneurial leadership team sensitive to the uniqueness, heritage and individuality of the Saab brand. Throughout these negotiations, both Spyker and Saab leadership have proven that they share a mutual vision for just such a partnership.

"Our company motto is nulla tenaci invia est via - for the tenacious no road is impassable," said Muller, "And we intend to remain true to that throughout these negotiations as we bid to secure Saab's future and revive the company."

The renewed Spyker offer is valid until 5pm (Eastern Standard Time) on Monday December 21, 2009.

TIMELINE-Saab fate uncertain as new Spyker deadline looms

 

Dec 21 (Reuters) - The fate of Swedish auto brand Saab hangs in the balance as a Monday evening deadline looms for General Motors (GM) [GM.UL] to decide on a renewed bid from Dutch luxury carmaker Spyker (SPYKR.AS). [ID:LDE5BK0S8]

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Following are key events in Saab's history:

1946 - Svenska Aeroplan Aktiebolaget (SAAB), founded in Sweden in 1937 to produce high-performance aircraft, starts to produce cars.

1969 - Saab AB and truck manufacturer Scania-Vabis AB merge under the name Saab Scania AB.

1990 - The Saab car division is restructured into an independent company. Investor AB (INVEb.ST) and GM each own 50 percent.

2000 - GM takes 100 percent ownership of Saab.

Jan. 11, 2009 - GM says it has been in talks to sell Saab.

Jan. 12 - Sweden says it will not take a stake in Saab or give more aid.

Feb. 20 - A Swedish court grants Saab protection from creditors as it tries to find a new partner and raise fresh funds.

Feb. 23 - Sweden says it can guarantee a European Investment Bank loan to Saab if a new owner emerges that can cover half the necessary financing.

Aug. 18 - Swedish sports carmaker Koenigsegg agrees to terms with GM on a deal to buy Saab.

Sept. 9 - Chinese state-run company Beijing Automotive Industry Holdings (BAIC) inks deal to take a minority stake in Koenigsegg as part of the deal to buy Saab.

Nov. 24 - Koenigsegg says it has pulled out of talks to buy Saab. Sweden effectively rules out a state bailout.

Nov. 25 - BAIC says it is reviewing its options.

Nov. 27 - GM says it is talking to possible buyers of Saab, four days before a GM board meeting considers whether to attempt to revive a sale process or eliminate the 60-year-old Swedish auto brand.

Nov. 30 - BAIC says might still be interested in buying Saab.

Dec. 1 - GM board says it will consider offers on the brand until the end of December and will then decide whether to close Saab if it appears the unit cannot be sold.

Dec. 3 - Saab has sold the production equipment for its old 9-5 sedan models to BAIC, Sweden's Ny Teknik newspaper reports.

Dec. 7 - GM in talks with BAIC about a partial sale of Saab assets, including tooling and technology.

Dec. 14 - BAIC says it has acquired some Saab assets, including intellectual property for the 9-5 and 9-3 sedan platforms and some equipment to produce the models.

Dec. 18 - GM says it will start an orderly wind-down of saab, saying the Spyker deal could not be completed in reasonable time.

Dec. 20 - Spyker submits a new, fast-track bid for Saab and, separately, GM says it will evaluate several new expressions of interest.

Sources: Reuters/ www.saabusa.com; (Writing by David Cutler, London Editorial reference Unit; editing by Greg Mahlich, Simon Jessop and Karen Foster)