Wednesday 25th November 2009

Koenigsegg Deal To Buy Saab Collapses

Saab's future in the balance; Beijing Auto evaluates new options

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Will the new 9-5 make it to production?

Koenigsegg has backed out of a deal to purchase Saab from General Motors, leaving the future of GM's cash-strapped Swedish luxury brand in serious doubt.

The Swedish supercar maker was leading a consortium to purchase Saab from GM, but has said that it has decided not to go ahead with the deal, as it was unable to agree with investors on how best to move Saab upmarket into a genuinely premium position.

GM, which has vowed to slim down from eight brands to four following its emergence from Chapter 11 bankruptcy this summer, could well now decide to shut down its loss-making Swedish subsidiary.

One lifeline for Saab could be Beijing Automotive Industry Holdings, which was part of the original Koenigsegg-led consortium. In a statement, Beijing Autos today said that the collapse of the deal to buy Saab was "regrettable".

Beijing stopped short of actually saying it was interested in a stand-alone bid, but hinted that this was a possibility.

"The path of internationalization and progressive development remains an important part of Beijing Auto's strategy," it said. "In view of Koenigsegg's withdrawal, we will carefully re-evaluate the project and make the appropriate arrangements."

Saab's future will be decided by GM at a board meeting on 1 December.

"We're obviously very disappointed with Koenigsegg's decision to pull out of the Saab purchase", said GM boss Fritz Henderson. "Given the sudden change in direction, we will take the next few days to assess the situation and will advise on the next steps next week."

The collapse of the deal with Koenigsegg follows GM's failure to sell Opel to Magna and US brand Saturn to the Penske Automotive Group, making it the third GM brand sale to fail since the US automotive giant exited from Chapter 11 bankruptcy proceedings on 10 July.

[BallsOfTitanium]

It's a shame that the deal fell through but it had to happen once the euphoria had subsided. Saab is a stragegic black hole with no discernible prodeuct or brand identity. The one breakthrough they have had as a company in the last 5yrs is the development of a four wheel drive system. Any company which uses second, third or even fourth generation GM tooling is always going to need a massive investment to become viable and that is the conclusion of koenigsegg consortium. I can't see Saab surviving........

[Oddball RS]

Options?

1.Beijing Automotive Industry Holdings
2.Close down


I'd close and save dignity,

[oilit]

Regrettable but inevitable I fear. The old Saab 900 convertible was a nice looking car.

I never quite understood why one would buy a re badged GM product and pay more for the privelege - but I feel sorry for the workforce.

[peteA]

Oddball RS said:

Options?

1.Beijing Automotive Industry Holdings
2.Close down


I'd close and save dignity,

Where was Saab heading before GM tookover...? Closure or where they making a profit...?

I always thought Saab did have their own direction design wise...whether you liked it or not, mind you I'm thinking of late 70's early 80's cars I guess..

Shame - another brand gone...?

[Tim16V]

Feels like someone's waiting for it to close, then they can pick up the assets really cheaply and may even get some state aid for the next phase. They wouldn't even have to develop new cars as two are production ready using the latest GM technology.

A sad situation that will hopefully be resolved satisfactorily for the workforce.

[gumsie]

oilit said:

I never quite understood why one would buy a re badged GM product and pay more for the privelege.

Don't Bentley buyers do that with the Phaeton?

[Sir_Dave]

gumsie said:

oilit said:

I never quite understood why one would buy a re badged GM product and pay more for the privelege.

Don't Bentley buyers do that with the Phaeton?

And Audi drivers could really just save some cash & buy a skoda ...

[Beefmeister]

This really p**ses me off. Not PH really, but other mags and net sites have reported this too, going on about how its a shame as Saab make nice niche cars, pity there won't be the new cars etc.

How about the fact that if Saab closes it'll ruin thousands and thousands of LIVES.

The workers, everyone at Saab. people seem to forget that these companies are PEOPLE LED, not just a faceless corp. Even the big money execs will be jobless.

Shame.

I think the poster above is right, looks to me like Koenigsegg are waiting to pick it up once it's gone bankrupt...

[Tom_C76]

oilit said:

Regrettable but inevitable I fear. The old Saab 900 convertible was a nice looking car.

I never quite understood why one would buy a re badged GM product and pay more for the privelege - but I feel sorry for the workforce.

The styling of a Saab is much more distinctive than a Vauxhall, and the interior is a world apart, noone makes comfy seats like the Swedes. That said, my Astra is noticably better to drive than my dad's 9-3 with the same engine, so horses for courses really.

[A Scotsman]

Beefmeister said:

How about the fact that if Saab closes it'll ruin thousands and thousands of LIVES.

The workers, everyone at Saab. people seem to forget that these companies are PEOPLE LED, not just a faceless corp. Even the big money execs will be jobless.

Shame.

Hear hear..... well said.. People count. However - unlike this country Sweden has a really good welfare system and it also has a highly entrepreneurial Govt and financial services sector and industry generally. It therefore wouldn't surprise me at all if another group (although it could still be Koenigsegg) pops up to take SAAB over.

[alfettagtv2000]

They're OK cars but feel a bit cheap in places....Still a shame though.

to be fair at least the first 'GM' 900 and 9-3 still had saab engines, a useful hatchback and the only vauxhall bit was a 'highly modified' calibra floorpan..I picked up a full turbo for a few hundred squids, it feels solid and reasonably rapid - can't complain really...

[rockystarr]

First the deal with Opel/Vauxhall fell through and now this. Is it just me is there something fishy going on?

[Ahonen]

Beefmeister said:

I think the poster above is right, looks to me like Koenigsegg are waiting to pick it up once it's gone bankrupt...

I'd lean more towards the Chinese doing that, not Koenigsegg. Just like they did with Rover. Delay a bit longer, a bit longer, until it's no longer a going concern, then pick it up for a song.

[Established 1984]

My guess is it went like this;

Koenigsegg: 'We want to use the latest technologies and good design to reestablish Saab as a low volume premium car maker, much the same way as Jaguar are attempting.'


Beijing Automotive Industry Holdings: 'We want to rebadge some of our cheap st and sell it to Europeans...'


Koenigsegg: 'Er.. no'

[Jezza30]

MG Rover deja vu?
All sounds rather similar Always had a soft spot for Saabs.

[HDM]

BallsOfTitanium said:

It's a shame that the deal fell through but it had to happen once the euphoria had subsided. Saab is a stragegic black hole with no discernible prodeuct or brand identity. The one breakthrough they have had as a company in the last 5yrs is the development of a four wheel drive system. Any company which uses second, third or even fourth generation GM tooling is always going to need a massive investment to become viable and that is the conclusion of koenigsegg consortium. I can't see Saab surviving........

Maybe in the last five years, but (courtesy of Wikipedia) take a look at the other innovations that SAAB pioneered that are now common place, seems a shame that a company with such a history of ground breaking inventions can be let slide into obscurity.


* 1958: The GT 750 is the first car fitted with seatbelts as standard.[23]
* 1963: Saab becomes the first volume maker to offer diagonally-split dual brake circuits.
* 1969: Saab creates an ignition system near the gearbox, instead of behind the steering wheel like most cars.
* 1970: Saab introduces a world-first - headlamp wipers and washers.
* 1971: Heated front seats are introduced, the first time in the world they are fitted as standard.
* 1971: Saab develops the impact-absorbing, self-repairing bumper.
* 1976: Saab was the first manufacturer to produce a turbo engine with wastegate to control boost.
* 1978: Saab introduces another 'world-first,' the passenger compartment air filter (pollen filter).
* 1980: Saab introduces Automatic Performance Control (APC), and an anti-knock sensor that allowed higher fuel economy and the use of lower grade fuel without engine damage.
* 1981: Saab introduces the split-field side mirror. This reduces the drivers blind spot.
* 1982: Saab introduces asbestos-free brake pads.
* 1983: Saab introduces the 16-valve turbocharged engine
* 1985: Saab pioneers direct ignition, eliminating the distributor and spark plug wires.
* 1991: Saab introduces a 'light-pressure' turbo.
* 1991: Saab is the first manufacturer to offer CFC-free air-conditioning.
* 1991: Saab develops its 'Trionic' engine management system, equipped with a 32-bit micro-processor.
* 1993: Saab introduces the 'Sensonic clutch' and the 'Black Panel', later to be called the 'Night Panel'.
* 1993: Saab develops the 'Safeseat' rear passenger protection system.
* 1994: Saab introduces the 'Trionic T5.5' engine management system, its processor is a Motorola 68332.
* 1995: Saab presents an asymmetrically turbocharged V6 at the Motor Show in Frankfurt, Germany.
* 1996: Saab introduces active head restraints (SAHR), which help minimize the risk of whiplash.
* 1997: Saab introduces Electronic Brake-force Distribution
* 1997: Saab fits ventilated front seats to their new 9-5.
* 1997: Saab introduces ComSense; an alert delay feature that reduces the risk of distraction by briefly postponing lower priority alerts when the brakes or indicators are activated
* 2000: Saab introduces Saab Variable Compression, an engine in which the compression ratio is varied by tilting the cylinder head in relation to the pistons.
* 2002: Saab developed ReAxs System provides crisp steering feedback and contributes to enhanced driving stability in curves
* 2003: Saab introduces CargoSET; automatic storage well retraction for the convertible, a two-step tonneau action for quicker soft-top deployment
* 2008: Saab introduces Cross-wheel drive, an advanced all-wheel drive system with eLSD.

[cazzer]

bks, the chinese invented all of them in the 14th century.
They just didn't tell the west for fear of errr....something.
Anyway, every invention is chinese.


Just like every company will be soon I fear.

[tegdesign]

Shame PH is so slow to post their news...in general. Nearly nothing gets posted here first, nor many unique posts. Shame.

[F i F]

Tonights paper headline literally translates as

Saab closes December 1

then there is a bit about 8000 jobs going at Trollhatten
then there is a question and answer bit for vehicle owners.

Not read it in detail but looks bloody grim frankly.

update:
State will not fund any rescue

Edited by F i F on Wednesday 25th November 17:27

[waremark]

I had been wondering why Koenigsegg thought he could make a go of Saab when GM had failed, and when Ford had failed with Volvo and Jag. Just think back to how many years it took Audi to raise their brand image to somewhere near Merc/BMW levels, and they were starting from a much higher base than Saab. Of course I am sorry for the workers, but it seems much less close to home than if the Magna deal had gone ahead and they had closed Ellesmere Port.