Koenigsegg pulls out of SAAB deal
11-24-09 | 08:34 AM
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Koenigsegg pulls out of SAAB deal
STOCKHOLM, Nov 24 (Reuters) - Tiny Swedish luxury car firm Koenigsegg said on Tuesday it had withdrawn from discussions with U.S. auto giant General Motors [GM.UL] over the purchase of its loss-making Saab Automobile unit.
"The time factor has always been critical for our strategy to breathe new life into the company," Koenigsegg said in a statement.
"The time factor has always been critical for our strategy to breathe new life into the company," Koenigsegg said in a statement.
11-24-09 | 09:04 AM
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Saab's Buyer Backs Out
Koenigsegg, the Swedish boutique car maker, has terminated its purchase agreement to buy Saab from GM. General Motors just released a statement from 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."
What the next steps will be is uncertain. GM recently decided to keep Opel, it’s German subsidiary instead of selling it off. Could Saab possibly remain under the GM umbrella? Or will it suffer the same fate as Saturn?
The sale was based on a loan from the Swedish government of roughly $600 million and a Chinese company was planning on a minority stake as part of the deal as well.
"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."
What the next steps will be is uncertain. GM recently decided to keep Opel, it’s German subsidiary instead of selling it off. Could Saab possibly remain under the GM umbrella? Or will it suffer the same fate as Saturn?
The sale was based on a loan from the Swedish government of roughly $600 million and a Chinese company was planning on a minority stake as part of the deal as well.
11-24-09 | 05:37 PM
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11-24-09 | 05:41 PM
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this is no surprise. Koenegsegg has sold like 118 cars total. Its kind of a huge bite for such a small company. I know the owner of Koenisegg is a rich guy who has a lot of pride in Sweedish cars but that still not enough to make this work.
11-24-09 | 05:42 PM
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My own $.02.............Saab needs to go back to being a Swedish-run company like it was before GM grabbed it up. The REAL (pre-GM) Saabs, though admittedly quirky, had a loyal core of dedicated buyers, many of who liked their quirkiness. GM did to Saab essentially what it did to Saturn......tried to mainstream the brand with people who didn't want mainstream, and, like Saturn, set off a downward spiral that led to the mess you see today.
(You could say a SAAB story)
(You could say a SAAB story)
Last edited by mmarshall; 11-24-09 at 05:45 PM.
11-24-09 | 05:49 PM
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I thought it was a great idea when I read about the owner in a Road & Track article recently but still wondered how a small company like Koenigsegg would be able to buy SAAB and make it profitable
11-24-09 | 05:59 PM
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Many, if not most, corporate buyouts today are done with borrowed money....that's why they call them leveraged buyouts. It is a very complex and involved process.......companies rarely, if ever, just hand over a conventional check or cash based on their current assets or bank accounts. Sometimes, of course, even government money is involved.....like it was, of course, with GM and Chrysler.
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11-24-09 | 07:32 PM
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My own $.02.............Saab needs to go back to being a Swedish-run company like it was before GM grabbed it up. The REAL (pre-GM) Saabs, though admittedly quirky, had a loyal core of dedicated buyers, many of who liked their quirkiness. GM did to Saab essentially what it did to Saturn......tried to mainstream the brand with people who didn't want mainstream, and, like Saturn, set off a downward spiral that led to the mess you see today.
(You could say a SAAB story)
(You could say a SAAB story)
11-24-09 | 08:56 PM
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Indeed. I am annoyed that GM has done NOTHING with Saab (what the hell was the 9-2X??? and the 9-7X??!?!). The 9-5 has been around since 1999. They didn't bother to do anything with Saab. I rarely see any adds and the number of Saabs on the road are now next to non-existent. I can't even see any older (80s, 90s) Saab either.
11-24-09 | 10:09 PM
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That being said, I find this to be quite sad. I would have loved to see what Koenigsegg can do with a car like the Turbo X.
11-25-09 | 04:08 AM
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I guess its easier to start a completely new brand from ground up than to try to reanimate Saab.
11-25-09 | 05:14 AM
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They probably back out on purpose after some thought. Owning a failing car in this economy with so many car comapnies on the chopping block is a death wish. It is probably better if just Saab die than Saab dragging Koenigsegg down with them.
11-25-09 | 06:11 AM
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I agree.....both were questionble from a market standpoint (and it showed in low sales), but, a least, the 9-2X, being a redone, upmarket Subaru Impreza, was a reliable car with an excellent AWD system, something that can't always be said for other Saabs.