Saab to Koenigesesgegsges

[dbk]

Unlikely deal if I ever heard of one!

UPDATE 1-GM sale of Saab looms as speedy Koenigsegg steps up

Fri Jun 12, 2009 5:04pm EDT
*Tiny supercar maker Koenigsegg close to Saab deal-source
*GM CEO declines comment on progress toward Saab sale (Adds comment from GM CEO)

STOCKHOLM, June 12 (Reuters) - General Motors (GMGMQ.PK: Quote, Profile, Research, Stock Buzz) is close to selling its loss-making Saab unit after tiny Koenigsegg agreed to ride to the rescue of its fellow Swedish carmaker, a source familiar with the talks told Reuters.

A deal would put a company that has less than 50 employees and turns out only a handful of $1 million supercars in charge of Saab, which produces that many family cars every hour.

Sweden would also likely join other governments backing swift rescues of their biggest car companies with state guarantees to help save jobs and one of the country's biggest brand names.

Koenigsegg, whose slinky supercars can top 400 km/h (240 mph) and rank in Forbes magazine's list of the world's 10 most beautiful cars, is backed by Norwegian investors, a source told Reuters on Thursday.[ID:nLB799437]

The two sides have signed a letter of intent and financing has been agreed, leaving only minor issues to be resolved, the source said.
Saab said on its website on Friday that new ownership would be finalised in the early summer and Swedish television reported that a preliminary deal was now with the U.S. Treasury Department with further information expected to be released next week.

In Washington, GM Chief Executive Fritz Henderson declined to comment on progress in the effort to find a buyer for Saab.

"Any material transaction we're involved in ... we would review what's gong on," Henderson told reporters. "We don't have anything to add."

SURPRISING PARTNERS

Tough times are producing some surprising partnerships, including GM's tentative deal this month to sell Hummer, the expensive, gas-guzzling vehicle of choice for musicians and movie stars, to Sichuan Tengzhong, a Chinese company that makes cement mixers.

Italian maker Fiat (FIA.MI: Quote, Profile, Research, Stock Buzz), which quit the U.S. market in 1983, is set to return under a new partnership with Chrysler while parts maker Magna International (MGa.TO: Quote, Profile, Research, Stock Buzz) is in talks to buy GM's European operations centred on Germany's Opel.

"I'm concerned it doesn't have the scale or expertise to exist as a stand-alone business," said Nomura analyst Michael Tyndall regarding Koenigsegg.

Saab has not posted a profit in a decade.

"I struggle to see how smaller brands can exist as stand-alone operations -- the industry doesn't have a great track record on this," said Tyndall.
The global recession has slashed demand for cars and sent U.S. giants GM and Chrysler into bankruptcy, leaving Ford (F.N: Quote, Profile, Research, Stock Buzz) as the only one of the so-called Big Three not needing government aid.

Koenigsegg hails from the other end of the automotive spectrum, a tiny firm operating out of an aircraft hangar set up in 1994 by young entrepreneur Christian von Koenigsegg, who pocketed some of his fortune selling frozen chickens.

Saab's future could see it turn into a much smaller, niche player, according to Mikael Wickelgren, a vehicle expert lecturer at the University of Skovde, Sweden..

"Saab probably would move towards more specialised, niche cars for a smaller customer base," said Wickelgren.

"It is a strategy that one has actually heard Saab speak of, but which has been difficult to achieve in a GM context. GM only thinks about volumes."
Saab produced nearly 100,000 cars off last year, about 1 percent of GM's global output.

GM put the company up for sale earlier this year and held talks with a number of potential buyers, including Fiat (FIA.MI: Quote, Profile, Research, Stock Buzz) and Chinese automakers. Talks narrowed to two or three unnamed bidders in recent weeks.

 

[Mullet]

didn't see that one coming.

 

[HHGT]

Saab should have stuck to building Aerospace components. While it may have been an engineering wonder, it has failed in every looks dept.

At least in my humble opinion.:wink

 

[BlackICE]

Saab should have stuck to building Aerospace components. While it may have been an engineering wonder, it has failed in every looks dept.

At least in my humble opinion.:wink

Well, maybe BMW should buy Saab, they have a least one thing in common.

 

[HHGT]

Well, maybe BMW should buy Saab, they have a least one thing in common.

What BMW needs to do is buy Volvo! Why? Because the guys that drive them act like Vulvas!!!!:lol:lol:lol

 

[BlackICE]

What BMW needs to do is buy Volvo! Why? Because the guys that drive them act like Vulvas!!!!:lol:lol:lol

IMHO, BMW drivers are very different than Volvo drivers. Volvo drivers are more akin to Prius drivers. One of my driving rules is avoid getting behind a Volvo or Prius, because it is sure to raise my blood pressure.

 

[Nardo GT]

Never get behind a minivan, Prius, Volvo, Buick etc.....generally either a soccer mom, greenie, safety freak, or grandma ....always keeping me from my "forward motion". I think some drivers have never heard of the word "flow".:frown Love the ones that stop for freeway entry:ack to SAFELY start from zero to merge and the one's that stop at a YEILD sign when an approaching car that is coming about 20mph is 200 yards away....they wait for that car when they could have just rolled right thru the yeild way BEFORE that car was even close then they wait for two or 3 more cars to pass then after about a minute of waiting they pull right out in front of someone.:eek Now that is a safe driver.:bs

 

[soroush]

What BMW needs to do is buy Volvo! Why? Because the guys that drive them act like Vulvas!!!!:lol:lol:lol

bony can you hear what they are saying about volvo's?

I do miss his comments very much

Sam youre introuble:biggrin

 

[RALPHIE]

Volvo has provided many solutions for safety designs...I hope Ford can keep them. They also sell a lot of trucks in Europe, along with heavy equipment worldwide. I hope Ford can hang onto them.

 

[PILOTJPW1]

Volvo heavy truck is a different company and not part of Ford I think.

I believe they were split when Ford bought Volvo. Ford should gain alot of ground in the medium truck market as Gm said we quit!

 

[dbk]

You are correct Pilot.

Volvo being sold is a foregone conclusion. I'd be stunned if it weren't gone by this time next year. Too expensive to build and too small a market. They make some really nice cars, and they look good now as well, but building cars in Sweden and Belgium doesn't do anything positive for the bottom line.

 

[HHGT]

bony can you hear what they are saying about volvo's?

I do miss his comments very much

Sam youre introuble:biggrin

Funny you should say that, I was thinking of Bony when I wrote my response to Mr. Iceman... Bony and I had a few laughs about the Vulva comments on a few occasions. RIP BONY...