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Posts Tagged ‘Koenigsegg Group’

GM Board Defers Saab Closing Until December

Says it will review new “expressions of interest.”

by on Dec.01, 2009

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Saab's future is still very much in doubt.

The Board of Directors at General Motors Company today decided to defer the closing Saab until it had time to review new potential buyers who have expressed interest after the sale of Saab to Koenigsegg Group AB collapsed last week because of an apparent lack of financing.

In a statement, which was eclipsed by the resignation of CEO Fritz Henderson, GM said, “The Board will evaluate potential bids between now and the end of December.  At that time, we will determine whether a suitable arrangement for Saab exists. If not, we will begin an orderly wind down of the global Saab business at that time.”

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Saab At The Last Minute

GM Board decides fate of the money losing Swedish Saab brand.

by on Dec.01, 2009

Last minute reprieve or execution?

Last minute reprieve or execution?

When the proposed sale of GM’s money losing Saab brand to Koenigsegg fell apart last week when the tiny company was unable to come up with the needed financing, GM insiders told TDB that unless an angel magically appeared, it was likely the GM Board would back up CEO Fritz Henderson’s oft stated position that no more money would be forthcoming to support the ailing brand.

General Motors had signed a memorandum of understanding last August to sell Saab Automobile AB to Koenigsegg, but without all of the needed financing in place. The Swedish government then refused to lend money to Koenigsegg.

At the time, Koenigsegg said it needed another $425 million to make the proposed business plan work. The business plan developed by Koenigsegg was never revealed, but it was critical for the deal to move forward.

Well, the decision on Saab’s fate has been made by the GM Board of Directors and it will be announced less than one hour from now.

Stay tuned…

Koenigsegg Drops Agreement For Purchase of Saab

No savior on horizon for ailing Swedish company.

by on Nov.24, 2009

Soon to be a collector's item?

Soon a collector's item?

General Motors confirmed today that the proposed sale of its Saab subsidiary to Koenigsegg Group AB was terminated at the “discretion of the buyer.”

General Motors had signed a memorandum of understanding in August to sell Saab Automobile AB to Koenigsegg, but without all of the needed financing in place. The Swedish government then refused to lend money to Koenigsegg. At the time, Koenigsegg said it needed another $425 million to make the proposed business plan work. The business plan developed by Koenigsegg was never revealed, but it was critical for the sale to move forward.

To make the deal work, Koenigsegg, the ultra small Swedish sports car maker for the ultra rich, put together a plan with Beijing Automotive Industry Holdings Company Ltd. BAIC, which is controlled by the Chinese Government, would have become a minority owner in Koenigsegg Group.

“We were as surprised as anyone,” a senior General Motors executive tells TheDetroitBureau.com.  Asking not to be identified by name, he adds,  “There were some indications over the weekend things were getting squishy…but we were moving towards a close.”

It remains to be seen if problems with the Beijing Auto partnership led to the collapse of the sale, but at this point, a GM source stresses there are “no other buyers in tow.”

As a result, the future of its loss-making subsidiary now appears grim, since GM has said it will not put any more money into the operation.

Ni Tack!

Ni Tack?

“We’re obviously very disappointed with the decision to pull out of the Saab purchase,” said GM President and CEO, Fritz Henderson in a statement.

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