Koenigsegg Group AB Terminates Agreement For Purchase of Saab

[Drew Dowdell]

Koenigsegg Group AB Terminates Agreement For Purchase of Saab

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

"We're obviously very disappointed with the decision to pull out of the Saab purchase," said GM President and CEO, Fritz Henderson. "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."

[Z-06]

Alright Then

[NINETY EIGHT REGENCY]

Koenigsegg drops plans to buy GM's Saab

CHRISSIE THOMPSON

AUTOMOTIVE NEWS

NOVEMBER 24, 2009 - 11:09 AM ET

UPDATED: 11/24/09 11:29 A.M.

Swedish supercar maker Koenigsegg Group AB has terminated its agreement to buy the Saab brand from General Motors Co.

"We're obviously very disappointed with the decision to pull out of the Saab purchase," GM CEO Fritz Henderson said today in a statement announcing Koenigsegg's decision. "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."

The Saab deal is the second of GM's planned U.S. brand sales to fall apart this year. GM also had an agreement to sell Saturn to Penske Automotive Group Inc. On Sept. 30, Penske pulled out of the deal because its proposed automaker partner, Renault SA, had decided it couldn't make enough money supplying Saturn with vehicles.

GM still has plans to sell Hummer and is winding down Pontiac. That will leave it with four U.S. brands: Chevrolet, Cadillac, GMC and Buick.

GM also had planned to sell a majority stake in its European Opel brand to a consortium led by Canadian supplier Magna International Inc., but the automaker decided earlier this month to keep Opel.

GM went through a 39-day bankruptcy earlier this year in which it eliminated debt in exchange for majority ownership by the U.S. government. The company has been eliminating brands as part of its efforts to right-size to achieve profitability amid a global slump in auto sales.

Edited November 24, 2009 by NINETY EIGHT REGENCY

[NINETY EIGHT REGENCY]

One of several things will happen now:

1. They already closed most of the SAAB dealerships or plan to terminate them. The dealer count is reduced.

2. Integrate SAAB into GM Europe(Opel/Vauxhall) totally as a part of the GM Europe restructuring.

3. Kill SAAB as they did Pontiac and Saturn. The issue is SAAB is known outside the US unlike Saturn and Pontiac.

4. The Chinese partner of GM SAIC steps up to the plate.

I told you GM was not through shocking people. It makes you wonder if they had really planned to sell of its assets...

[Intrepidation]

Interesting, I wonder if it has something to do with the Opel/Vauxhall fallout. GM has spent quite a lot on the 9-4x and the new 9-5, it would be a big waste to just drop them before they go on sale, but then GM has done that before.

[Drew Dowdell]

Saturn/Pontiac/Saab/Hummer..... there's an entire lineup right there... prepackaged and waiting for an investor.

[CaddyXLR-V]

Saturn/Pontiac/Saab/Hummer..... there's an entire lineup right there... prepackaged and waiting for an investor.

If only GM would let that happen.

[Camino LS6]

Saturn/Pontiac/Saab/Hummer..... there's an entire lineup right there... prepackaged and waiting for an investor.

Good point.

[vonVeezelsnider]

It's curtains for Saab. If they really wanted they could retain the new 9-5, slap some other badge on it, and sell it if its so good.

[Croc]

Oh good grief. Well, it will be very interesting to see what news comes out over the course of the next few weeks...

[Justin Bimmer]

Haven't we seen this before? Just a few weeks ago?

[Oracle of Delphi]

Interesting, I wonder if it has something to do with the Opel/Vauxhall fallout. GM has spent quite a lot on the 9-4x and the new 9-5, it would be a big waste to just drop them before they go on sale, but then GM has done that before.

GM is rebuilding it's empire, don't be surprised if Saab is not rolled into GME. Is Pontiac next? Now you know why I was up so late last night talking to you.

Edited November 24, 2009 by Oracle of Delphi

[cletus8269]

fffffuuuuuuuuu..... hehehe dang that would have been an awesome partnership.

[NINETY EIGHT REGENCY]

GM is rebuilding it's empire, don't be surprised if Saab is not rolled into GME. Is Pontiac next? Now you know why I was up so late last night talking to you.

I am totally confused now. What is GM doing? What is indeed going on?

[SAmadei]

GM is rebuilding it's empire, don't be surprised if Saab is not rolled into GME. Is Pontiac next? Now you know why I was up so late last night talking to you.

As long as the Pontiacs don't look like warmed over Opels, it could have some serious positives.

[ZL-1]

GM is rebuilding it's empire, don't be surprised if Saab is not rolled into GME. Is Pontiac next? Now you know why I was up so late last night talking to you.

Hmmm.... stall, stall, stall in Europe, collect Government and EIB incentive money to fund GME restructuring and.... bring back Pontiac as the RWD-only niche brand that was impossible to launch before the bankruptcy?

[Justin Bimmer]

Hmmm.... stall, stall, stall in Europe, collect Government and EIB incentive money to fund GME restructuring and.... bring back Pontiac as the RWD-only niche brand that was impossible to launch before the bankruptcy?

I think that sounds pretty good to me.

[smk4565]

So Saab is dead now too I assume, unless a buyer magically appears from no where.

I wonder what will happen with the 9-5, they can't really move it to Buick because the LaCrosse/Regal are already Epsilon2 cars. So will they use it as a Cadillac, but then it will be sized and priced against the CTS which is somewhat pointless. Perhaps it won't got on sale at all.

[ocnblu]

So crazy.

[Oracle of Delphi]

Hmmm.... stall, stall, stall in Europe, collect Government and EIB incentive money to fund GME restructuring and.... bring back Pontiac as the RWD-only niche brand that was impossible to launch before the bankruptcy?

You don't see a theme here? Same plan as it was for Opel, but on a slightly smaller scale. There is an internal issue that needs to be resolved, once that hurdle is cleared, I see Saab being rolled into either GME or Opel/Vauxhall. There is a small chance it will be killed, but it's very small. Once Saab's future is put to bed, then I see for now, Tribute Pontiac models being built by Holden every few years or so,and offered though Buick/GMC or a model called Pontiac under Holden if and when GM has the funds to launch Holden in North America, but for now tribute cars would keep the brand alive ...

[Justin Bimmer]

So Saab is dead now too I assume, unless a buyer magically appears from no where.

I wonder what will happen with the 9-5, they can't really move it to Buick because the LaCrosse/Regal are already Epsilon2 cars. So will they use it as a Cadillac, but then it will be sized and priced against the CTS which is somewhat pointless. Perhaps it won't got on sale at all.

Dude, you need to read the whole thread.

[CSpec]

This is certainly a surprise. When you say that Saab will be integrated into GME, does that mean their Swedish facilities will face the ax? I thought they were already part of GME before the sale?

[FAPTurbo]

Ugh, I hope GM doesn't decide to take it back. The company doesn't need a $5000 loss per transaction monkey on its back.

[ZL-1]

You don't see a theme here? Same plan as it was for Opel, but on a slightly smaller scale. There is an internal issue that needs to be resolved, once that hurdle is cleared, I see Saab being rolled into either GME or Opel/Vauxhall. There is a small chance it will be killed, but it's very small. Once Saab's future is put to bed, then I see for now, Tribute Pontiac models being built by Holden every few years or so,and offered though Buick/GMC or a model called Pontiac under Holden if and when GM has the funds to launch Holden in North America, but for now tribute cars would keep the brand alive ...

Yeah, I see the theme. In Korea as well, but with a more tactful approach. Now with the GM DAT rights issue GM gets control of GM DAT operations.

SAAB could be rolled into GME a number of different ways, from merger to perhaps it becoming to GM what Subaru is to Toyota: a client/supplier of technology and an equity investment, with little or no control over management.

Re Pontiac, what you described is 'niche' pure and simple.

Edited November 25, 2009 by ZL-1

[ZL-1]

Ugh, I hope GM doesn't decide to take it back. The company doesn't need a $5000 loss per transaction monkey on its back.

Until any of us know how that loss was calculated (i.e., most likely never) that number is merely interesting... Trust in Old GM's internal reporting/control mechanisms is very small (OK, probably zero), so we don't know what charges were pushed over to subsidiaries' books, if those charges were allocated properly, and how that affected the loss per car number... The same reasoning can be used re Oldmobile's and Pontiac's demise...

Edited November 25, 2009 by ZL-1

[CaddyXLR-V]

Until any of us know how that loss was calculated (i.e., most likely never) that number is merely interesting... Trust in Old GM's internal reporting/control mechanisms is very small (OK, probably zero), so we don't know what charges were pushed over to subsidiaries' books, if those charges were allocated properly, and how that affected the loss per car number... The same reasoning can be used re Oldmobile's and Pontiac's demise...

Exactly. That's why that article where GM said Pontiac doesn't make money was BS. GM could make it show whatever they want it to show to make their core brands look better.

[ZL-1]

Exactly. That's why that article where GM said Pontiac doesn't make money was BS. GM could make it show whatever they want it to show to make their core brands look better.

I wouldn't call it BS, more a observation that control/reporting were deficient. That deficiency is not an Accounting/GAAP issue as that would appear in the Auditor's opinion, it's more of a management reporting issue: how accounting info is rearranged in internal reporting, in order for business decisions to be made.

[Blake Noble]

You know, if GM is truly more internally efficient, GM shouldn't have any problem with Saab and Pontiac on its plate in addition to its four core brands.

Saturn still needs the axe, though. And Hummer can go elsewhere.

Edited November 25, 2009 by whiteknight

[ZL-1]

You know, if GM is truly more internally efficient, GM shouldn't have any problem with Saab and Pontiac on its plate in addition to its four core brands.

I agree.

[Blake Noble]

I agree.

Let's just hope we're right ...