The Saab Story Continues: Deal With Hawtai Motor Group Collapses

[William Maley]

The Saab Story Continues: Deal With Hawtai Motor Group Collapses

William Maley - Editor/Reporter - CheersandGears.com

May 12, 2011

Related: Saab Financing Update: Additional Financing Acquired

Saab can't seem to catch a break at all. Last week, Saab announced a partnership with Chinese auto maker, Hawtai Motor Company. The partnership would have brought much needed funds to the struggling Swedish automaker. However, Spyker Cars N.V released a statement this morning saying the partnership between Saab and Hawtai had fallen apart.

"Since it became clear that Hawtai was not able to obtain all the necessary consents, the parties were forced to terminate the agreement with Saab Automobile and Spyker with immediate effect," Spyker said in a statement today.

However, Saab is still in talks with the European Investment Bank to complete a 29 million Euro loan drawdown, waiting for consent from the Swedish National Debt Office to sell off some property, and looking to secure some short and medium-term funding. Spyker said in their statement that when the loan drawdown is approve or another type of funding comes through, production will restart.

Saab is also in talks with another Chinese Automaker, Great Wall about a possible partnership. A source within Great Wall says the two companies have been in talks for awhile.

"The two sides have never stopped talking and have been in touch with each other despite the Hawtai/Spyker deal."

When asked about the talks, a Great Wall spokesman declined to comment.

Source: The Detroit News, Automotive News (Subscription Required)

Spyker Statement is Below

SPYKER AND HAWTAI MOTOR GROUP CONTINUE DISCUSSIONS ABOUT FUNDING AND STRATEGIC PARTNERSHIP YET EARLIER AGREEMENT TERMINATED

Zeewolde, The Netherlands, 12 May 2011 – Spyker Cars N.V. (Spyker) announces today that Hawtai Motor Group Company Limited (Hawtai) and Spyker terminated the agreement by and between Hawtai, Spyker and Saab Automobile AB (Saab Automobile) with respect to funding and strategic partnership. However, discussions are ongoing.

As a result of this termination, Saab Automobile may enter into a strategic partnership with Hawtai or another Chinese party on manufacturing, technology and distribution in China. As indicated in the press release of 3 May 2011, the transaction with Hawtai was subject to definitive transaction documentation and certain conditions, which included the consent of different stakeholders. Since it became clear that Hawtai was not able to obtain all the necessary consents, the parties were forced to terminate the agreement with Saab Automobile and Spyker with immediate effect. The parties will continue their discussions about a possible cooperation, however now on a non-exclusive basis.

Spyker and Saab Automobile continue to work on securing short and medium term funding. To that end Spyker and Saab Automobile are negotiating equity and debt financing and/or technology licensing with various (strategic) Chinese partners.

BAIC indicated that it does not have any problems with Saab’s ongoing discussions with other Chinese partners.

Discussions continue with the European Investment Bank (EIB) on completion of the current EUR 29 million drawdown under the EIB loan facility, on obtaining EIB consent for the sale of Saab property released under the collateral of the Swedish National Debt Office (NDO) and on various conditions proposed by the EIB. As soon as the EIB drawdown or other equivalent funding is confirmed, Saab Automobile plans to restart production depending on the outcome of discussions with its suppliers on terms to resume supplies of materials and services to Saab Automobile.

[Croc]

[Drew Dowdell]

Anyone else here read "Hawtai" as hottie in "Jersey Shore Accent"?

[William Maley]

Anyone else here read "Hawtai" as hottie in "Jersey Shore Accent"?

Yes

[FAPTurbo]

This is getting SAAD.

[Camino LS6]

This is getting SAAD.

You sir, earn a point for that!

[Z-06]

Actions speak louder than words Mr. Big Mouth Muller. So much for blaming GM and saying how he will be better than GM in resuscitating SAAB.

[SAmadei]

Anyone else here read "Hawtai" as hottie in "Jersey Shore Accent"?

ARGH! They are all New Yorkers! No native Jersey Shore people sound like that!

[Croc]

Anyone else here read "Hawtai" as hottie in "Jersey Shore Accent"?

ARGH! They are all New Yorkers! No native Jersey Shore people sound like that!

Actually, Sammi Sweetheart and Deena Nicole are Jersey natives.

[Drew Dowdell]

My sister still lives in the house we were brought up in from birth in Trenton and she talks like that.

[regfootball]

it will be sad if Saab goes but honestly it's becoming even more apparent how much of a gift GM gave to Saab by delaying their death.

I totally love Saab cars but perhaps their best stuff was too late arriving.

[SAmadei]

Actually, Sammi Sweetheart and Deena Nicole are Jersey natives.

Actually, I knew Sammi was... but shes a less famous character. Deena is new... I never heard of her. I don't actually watch the show, as it makes me physically ill. In any case, they have adopted their NY friends' accents from someplace...

Keep in mind, I could be considered a NYer at times... if it wasn't for my need to sleep within New Jersey soil from time to time to regenerate. ;-)

My sister still lives in the house we were brought up in from birth in Trenton and she talks like that.

Well, Trenton is hardly the shore. In any case, it sounds like she has emulated the NY tongue instead of NJ. There is more of that in north Jersey... which Trenton is close to... but most of the Jersey Shore... uh, the non F'd up Jersey Shore (Seaside Heights... thats you)... is in South Jersey. All those BS accents on the Sopranos? Stolen from Brooklyn. Most North Jersey people I know don't sound anything like that.

Ask your sister to pronounce 'water'... my Brooklyn GF thinks my South Jersey accent is "quaint"... especially when I talk about "wadder". But at the same time, I laugh when she gets pissed off and drops into "Heavy Brooklyn" mode.

[Drew Dowdell]

I am sometimes still guilty of saying "wadder"

[Camino LS6]

"wadder" or "wooder" is also a philly thing.

[Potluck]

why haven't they closed already? If sweden really wants them around, they would have bailed them out already.

[Robert Hall]

I am sometimes still guilty of saying "wadder"

Then there is 'warter' or 'warder'...seems to be an Eastern Ohio/WV panhandle/W. Pa thing? Used to hear that a lot when I lived back there... I think I've always unconsciously pronounced it 'wadder'..(raised in E. Ohio and S. Florida, parents immigrated from Kentucky 20 yrs before I was born, maybe picked up some accent from them).

Anyhoo, back on topic...seems like it's about game over time for SAAB, unless they get a Swedish saviour (these China deals seems pretty fishy).

Edited May 13, 2011 by Cubical-aka-Moltar

[Drew Dowdell]

enough of my disability, back to Saab

[67impss]

I thought the Russian guy was in the money pit also?