Autoblog

REUTERS: China's BAIC secures $2.1B line of credit... is it for Saab?

Jonathon Ramsey — Sun, 06 Dec 2009 12:37:00 EST

Filed under: China, GM, Saab, Earnings/Financials, Koenigsegg

Beijing Automotive Industry Corporation (BAIC) could still be in the game for Saab, having secured a $2.93 billion line of credit from the Bank of China. On the other hand, BAIC could just be gearing up for its own home-grown expansion plans, with an eye on ramping up production and putting financial and technological legs underneath its partnerships with Mercedes and Hyundai.

Or... it could be doing both: trying to buy Saab and as well as remodel its business. The deal for Saab between GM and Koenigsegg was for about $1 billion: the European Investment Bank approved a loan for $615 million, and BAIC provided about $400 million by buying a minority stake in the Koenigsegg Group. If BAIC did its own deal with GM for that same amount -- although we have a feeling they could get a Christmas discount -- that would leave nearly $2 billion for BAIC to take care of Saab and invest in its own operations.

This is, of course, pure speculation -- BAIC could have something else in mind entirely. All we know right now is that they've got a lotta yuan just sitting around waiting to be spent, and aborted plans to build the new 9-5 in China. This Saab story isn't finished yet...

[Source: Reuters]

REUTERS: China's BAIC secures $2.1B line of credit... is it for Saab? originally appeared on Autoblog on Sun, 06 Dec 2009 12:37:00 EST. Please see our terms for use of feeds.

Read | Permalink | Email this | Comments

Is Peugeot-Citroën on the verge of buying Mitsubishi?

Jeremy Korzeniewski — Fri, 04 Dec 2009 15:59:00 EST

Filed under: Hirings/Firings/Layoffs, Mitsubishi, Earnings/Financials, Peugeot, Citroën

The French and the Japanese have gotten together to form a magic partnership once already with Carlos Ghosn at the helm. The question is, then, can that success be replicated? PSA Peugeot-Citroën seems to hope so, and it is reportedly on the verge of purchasing a controlling stake (somewhere between 30 and 53 percent, depending on the report) in Mitsubishi Motors.

The total price for the acquisition would cost the European automaker over $3 billion and the deal would also include Mitsubishi acquiring a somewhat smaller stake in PSA Peugeot-Citroën - again, similar to the situation between France's Renault and Japan's Nissan.

So, what does Mitsubishi have that Peugeot wants? Three things, apparently: A presence in the States, SUV expertise and, perhaps most importantly, electric vehicle technology. If a deal does indeed take place, the resulting entity would be the sixth largest automaker by sales in the world.

[Source: BusinessWeek]

Is Peugeot-Citroën on the verge of buying Mitsubishi? originally appeared on Autoblog on Fri, 04 Dec 2009 15:59:00 EST. Please see our terms for use of feeds.

Read | Permalink | Email this | Comments

BREAKING: Whitacre to shakeup GM management, put Lutz in product planning [UPDATE: Confirmed]

Chris Paukert — Fri, 04 Dec 2009 10:00:00 EST

Filed under: Hirings/Firings/Layoffs, GM, Earnings/Financials

Having just been appointed interim CEO at General Motors earlier this week, ex-AT&T man Ed Whitacre isn't wasting any time in exercising his newfound authority. According to The Wall Street Journal, Whitacre is to announce a number of management changes this morning, including moving Vice Chairman Bob Lutz from his role in marketing to a more product planning-focused role. Whitacre is also expected to promote some of the company's younger managers to new positions, although it has not yet been revealed who is targeted.

According to the WSJ, Whitacre "drew up the new management blueprint in a matter of four hours," suggesting to us that he already had a number of changes in mind. Further, he is also expected to combine GM's sales and marketing divisions

While Whitacre has only been on the job since Tuesday and he is technically only considered an interim appointment at this time, the search for a new CEO is thought likely to take months, if not a year. From the looks of things, Whitacre isn't looking at himself as simply a placeholder, though, and we wouldn't be surprised to see more changes as the weeks and months roll by.

*UPDATE: Changes confirmed: GM has issued a press release (viewable after the jump). Among the moves, Bob Lutz will be an 'advisor' on design and global product - he will retain his title of vice chairman. Other changes include Mark Reuss named as president of GM North America, Susan Docherty appointed VP, vehicle sales, service, and marketing operations. For a full list of changes, click past the jump for the release.

[Source: The Wall Street Journal I Image: Bill Pugliano/Getty]

Continue reading BREAKING: Whitacre to shakeup GM management, put Lutz in product planning [UPDATE: Confirmed]

BREAKING: Whitacre to shakeup GM management, put Lutz in product planning [UPDATE: Confirmed] originally appeared on Autoblog on Fri, 04 Dec 2009 10:00:00 EST. Please see our terms for use of feeds.

Permalink | Email this | Comments

REPORT: GM selling control of Chinese joint venture to SAIC, half of India operations

Chris Shunk — Fri, 04 Dec 2009 09:00:00 EST

Filed under: China, GM, Earnings/Financials

It has been a busy week at General Motors. The week started off with CEO Fritz Henderson's abrupt resignation, then executives converged on the LA Auto Show where Bob Lutz was the keynote speaker and then the U.S. market Chevy Cruze was revealed. Now, the General is reportedly deep in negotiations halfway around the world with its Chinese partner, SAIC, to sell its partnership stake in what is now the largest auto market in the world.

Here is how the deal will reportedly break down: According to Reuters, GM will give SAIC a scant one percent of its interest in the China venture and 50% of GM's India operations. In exchange, the General would receive what amounts to about 20% of the value of the China venture. Sounds like a pretty sweet deal considering the fact that GM isn't exactly a big player in the Indian market - but there is a very big downside. If GM cedes one percent of its joint venture with SAIC, then the Detroit, MI-based automaker would no longer control its China operations. The rumored deal will contain a proviso that the General can later buy back its lost percentage for a "premium price." That sounds a little like GM just got a loan from SAIC and put up one percent of its ownership as collateral.

While GM currently has over $40 billion in its cash coffers courtesy of its recent bailout and bankruptcy, The General is in a big hurry to pay back the money it owes the government. It also has to contend with what is still a very soft auto market - not to mention Opel restructuring costs that could tally $5 billion or more. But China is also a monster part of GM's business plan, so any money gained from this deal could come at an even greater cost. We have to wonder if this deal had anything to do with Mr. Henderson's abrupt exit stage left...

[Source: Reuters]

REPORT: GM selling control of Chinese joint venture to SAIC, half of India operations originally appeared on Autoblog on Fri, 04 Dec 2009 09:00:00 EST. Please see our terms for use of feeds.

Read | Permalink | Email this | Comments

REPORT: U.S consortium now in lead for Volvo purchase

Jeremy Korzeniewski — Thu, 03 Dec 2009 15:40:00 EST

Filed under: China, Ford, Volvo, Earnings/Financials, Rumormill

Just about a month ago, news hit the interwebs that Chinese automaker Geely officially became Ford's preferred bidder for Volvo once concerns over intellectual property were sorted out. Today, though, we're hearing that Crown, a consortium led by former Ford director Michael Dingman, former Ford and Chrysler LLC executive Shamel Rushwin and ex-Volvo CEO Roger Holtback, is gaining momentum in its bid for the Swedish automaker after submitting a revised proposal.

If reports from The Wall Street Journal and Reuters are accurate, Crown's new bid is "on par" with Geely's $1.8 billion offer and is backed by both Swedish and Chinese investors and banks. Not surprisingly, Ford has yet to comment on the speculation, though it has said that talks with Geely are already at an advanced stage. Stay tuned.

[Sources: The Wall Street Journal; Reuters]

REPORT: U.S consortium now in lead for Volvo purchase originally appeared on Autoblog on Thu, 03 Dec 2009 15:40:00 EST. Please see our terms for use of feeds.

Read | Permalink | Email this | Comments

Ruh-Roh: Marchionne reportedly puts Alfa Romeo under review

Noah Joseph — Wed, 02 Dec 2009 17:20:00 EST

Filed under: Car Buying, Europe, Earnings/Financials, Alfa Romeo

Take a look at the Fiat auto group. What division (barring Ferrari and Maserati) would you think holds the highest value for the company? If you thought Alfa Romeo, you're on the same page as yours truly, but you'd be mistaken. Horribly mistaken, as it turns out: Alfa has lost Fiat hundreds of millions of euros every year. Its sales have declined sharply, and not just since the global economy collapsed: Alfa sold 203,000 units in the year 2000, but only 103,000 last year. That's a heck of a drop-off.

In response, Fiat CEO Sergio Marchionne has ordered a full re-evaluation of the marque, with two courses of action to potentially result. The first would see Alfa more closely integrating its future products with Chrysler platforms. The second would be to stop investing in the brand altogether, leaving the still-new MiTo and the brand-new Giulietta to carry its aging stablemates (including the 159, Brera, Spider and GT) for the foreseeable future.

Speaking with Automotive News Europe from Fiat's headquarters in Turin, Marchionne reportedly said the new plan for Alfa will be revealed this coming February or March. Even if he chooses to keep Alfa alive with Auburn Hills synergy, though, Marchionne has nixed the notion of merging the brand with Dodge, noting that there's a limit to how many times a brand can be reborn.

[Source: Automotive News Europe - subs. req'd | Image: Tiziana Fabi/AFP/Getty]

Ruh-Roh: Marchionne reportedly puts Alfa Romeo under review originally appeared on Autoblog on Wed, 02 Dec 2009 17:20:00 EST. Please see our terms for use of feeds.

Read | Permalink | Email this | Comments

Merbanco out, Spyker in as Saab bidding heats up. Was Fritz axed because he wanted Saab closed?

Chris Paukert — Wed, 02 Dec 2009 12:01:00 EST

Filed under: Europe, Saab, Earnings/Financials, Rumormill

2010 Saab 9-5 - Click above for high-res image gallery

As General Motors suddenly finds itself in search for a new CEO to replace Fritz Henderson, it is also looking to secure a buyer for perennially troubled Saab. GM originally thought it had a new parent for the brand in Koenigsegg, but after that deal went sour, Detroit officials confirmed that it they would give themselves up until the end of the year to find a new buyer instead of simply shutting Saab down.

A number of parties have expressed interest in purchasing the brand since that time, and it has now been confirmed that the Swedish marque has another supercar-building pursuer: Spyker. The Netherlands-based exotic manufacturer has just issued a brief statement confirming that it - along with its shareholders at the Convers Group - has indeed "expressed an interest in Saab Automobile AB" (text available after the jump). Spyker has never been a brand short of ambition (remember its ill-fated Formula One effort?), but taking on Saab would be its most ambitious undertaking yet.

In related news, marque website Saab History is reporting that the US-based Merbanco group has not been chosen by GM as a possible purchaser. According to the SH, Merbanco CEO Christopher Johnston released a statement to the enthusiast group that says:

"As most of you know, we ride with the brand, the fit was good, and were up to the challenges ahead. It is now time for us to depart the field and support the company and its outstanding people.
We are grateful to all of you, fellow Saab enthusiasts and the Saab team for the support you have us. It will never be forgotten. Heartfelt thanks, Ryan and friends for your support."

(Saab History had previously conducted an interview with Johnston, the contents of which you can find here.)

Interestingly, UK buff book Autocar is reporting that yesterday's ousting of Fritz Henderson could stem from the exec's apparent desire to close Saab, a viewpoint that was evidently not shared by the rest of GM's board. We suspect there were a whole host of issues that led to Henderson's resignation, but it's likely that GM's trustees would prefer to offload the brand rather than incur substantial shutdown costs. Call it a "potential contributing factor," if you will.

Either way, do you think Saab will survive this tumult? Drop us a line in 'Comments.'

Gallery: 2010 Saab 9-5

[Sources: Spyker; Saab History; Autocar; Automotive News]

Continue reading Merbanco out, Spyker in as Saab bidding heats up. Was Fritz axed because he wanted Saab closed?

Merbanco out, Spyker in as Saab bidding heats up. Was Fritz axed because he wanted Saab closed? originally appeared on Autoblog on Wed, 02 Dec 2009 12:01:00 EST. Please see our terms for use of feeds.

Permalink | Email this | Comments

REPORT: GM could sell some Saab assets to Chinese; brand has through year's end to find buyer

Chris Shunk — Tue, 01 Dec 2009 19:26:00 EST

Filed under: China, Plants/Manufacturing, GM, Saab, Earnings/Financials

General Motors' Saab brand has been given a one month stay of execution as the Detroit, MI-based automaker has announced that it will hold off on a decision regarding the brand's fate until the end of the year. GM's apparent non-decision comes just one week after it announced that Swedish specialty car maker Koenigsegg unexpectedly pulled out of the running for Saab.

While GM isn't commenting on any potential suitors at this time due to non-disclosure agreements with the parties involved, speculation is that Beijing Automotive Industry Holding Co. and Wyoming-based Merbanco Inc are in the running for the struggling Swedish automaker. BAIC appears to make some sense considering the Chinese automaker's desire to enter the U.S. market and the fact that it was also involved in a bid to purchase Opel from GM earlier in the fall.

Beijing Auto was also reportedly involved in the original Koenigsegg deal, which fell apart for reasons we may never know. GM said in a brief statement (available after the jump) that if no deals materialized by the end of the year, it expects to begin an orderly wind down of the global Saab business at that time."

[Sources: The Detroit News; General Motors | Image: Torsten Silz/AFP/Getty Images]

Continue reading REPORT: GM could sell some Saab assets to Chinese; brand has through year's end to find buyer

REPORT: GM could sell some Saab assets to Chinese; brand has through year's end to find buyer originally appeared on Autoblog on Tue, 01 Dec 2009 19:26:00 EST. Please see our terms for use of feeds.

Read | Permalink | Email this | Comments

REPORT: Renault and Russia come to agreement on AvtoVAZ

Jonathon Ramsey — Mon, 30 Nov 2009 13:59:00 EST

Filed under: Earnings/Financials, Renault, Russia

Renault has found a way to appease Russian Prime Minister Vladimir Putin that didn't involve writing a check for $850 million. The French company took a 25% stake in Russian carmaker Avtovaz, and when Avtovaz started having a hard time of it earlier this year Renault looked content to see how things turned out. Putin wasn't: he told Carlos Ghosn to inject cash into Avtovaz, or Putin would dilute Renault's stake with a share sale.

Things retreated from the cliff when Renault promised technology to Avtovaz, in return for which Russia would put 50 billion rubes ($1.7 billion U.S.) into the company. Renault's technology share is valued at €240 million ($358 million U.S.). The know-how could be of greater assistance to both companies than if Renault had contributed cash: Avotvaz gets something it can build on long term, and Renault doesn't have to throw good rubles after bad.

Avtovaz is nowhere near rescued, however. The company remains loaded with debt, making it difficult to finance its restructuring, and sales of its primary vehicle, Lada, haven't rebounded. And to hear Putin tell it, he could be knocking on Renault's door again soon.

[Source: Bloomberg | Photo: PIERRE VERDY/AFP/Getty Images]

REPORT: Renault and Russia come to agreement on AvtoVAZ originally appeared on Autoblog on Mon, 30 Nov 2009 13:59:00 EST. Please see our terms for use of feeds.

Read | Permalink | Email this | Comments

How do you spell Hyundai's Kryptonite? J-D-M

Dan Roth — Sun, 29 Nov 2009 18:19:00 EST

Filed under: Car Buying, Japan, Hyundai, Kia, Earnings/Financials, South Korea

As Hyundai continues to pull itself up by its bootstraps, the company is moving decisively and picking up share around the globe. However, one key market continues to be so problematic for the brand that they've decided to abandon it altogether: Japan. Rather than dodder around and wait for its disappointing performance to improve, Hyundai is tying off the bleeder that is the company's Japanese market presence. The cars themselves, either under Hyundai badging or as Kias, have become contenders in terms of styling and quality, two key indicators of the company's commitment. And the move into Japan was part of Hyundai's worldwide plan for expansion. For all its efforts, though, the famously insular market has deflected this outsider. In the eight years Hyundai has been selling vehicles in Japan, it has only managed to shift 15,000 units.

For all its efforts, 1,875 cars per year just isn't worth it to Hyundai, though it will still try to sell commercial vehicles to Japan. According to the South Korean daily, Chosun Iibo, tariffs are slapped on outsiders selling cars in Japan, and the size of some models Hyundai's been trying to market there doesn't match up with typical Japanese garages and parking spaces. Buyers who have the space for larger cars aren't the ones Hyundai's trying to nab, either. Those purchasers typically pursue higher-end metal.

Interestingly, rival Toyota might see Hyundai's move as a sort of victory. Toyota itself established a beachhead in the more-welcoming South Korean market in 2000, and has been selling thousands of vehicles there under its Lexus and Toyota nameplates. While Hyundai is giving up on Japan, Toyota's looking to move more cars than ever in South Korea.

[Sources: CNBC. Chosun]

How do you spell Hyundai's Kryptonite? J-D-M originally appeared on Autoblog on Sun, 29 Nov 2009 18:19:00 EST. Please see our terms for use of feeds.

Read | Permalink | Email this | Comments

Followup: Auctioneer Kruse ordered to pay bank $1.3M, has jet repo'd

Michael Harley — Sat, 28 Nov 2009 14:33:00 EST

Filed under: Auctions, Earnings/Financials

The walls are closing in on Dean Kruse, head of the Indiana-based Kruse International auction house. In September, a slew of lawsuits were filed against the company. Further opening the wound, a county court in Indiana has now ordered Kruse to pay more than $1.3 million to a bank in Warsaw -- just one of several debtors seeking money from the company -- for an overdue loan originally in the amount of $4.5 million. Two foreclosure lawsuits in DeKalb County, Indiana, are pending. One is for $6.5 million in unpaid loans. The other is for a loan in default for $7.8 million. Adding to his growing headache, and slowing down his travel, GE's financial arm has asked a federal court to repossess Kruse's million-dollar Cessna corporate jet.

While Kruse isn't talking to the media about his current events, he told The Journal Gazette last month that the recession has been hard on his sales. Compounding his troubles and drying up his cash flow, his longtime business practice of releasing cars to good customers before payment has come back to bite him. Understandably, he told the Gazette that he has since suspended that practice.

[Source: The Journal Gazette]

Followup: Auctioneer Kruse ordered to pay bank $1.3M, has jet repo'd originally appeared on Autoblog on Sat, 28 Nov 2009 14:33:00 EST. Please see our terms for use of feeds.

Permalink | Email this | Comments

REPORT: Saab still has at least two interested parties - BAIC and Merbanco

Chris Shunk — Sat, 28 Nov 2009 09:40:00 EST

Filed under: GM, Saab, Earnings/Financials, Rumormill

2010 Saab 9-5 - Click above for high-res image gallery

When Koenigsegg pulled out of its agreement with General Motors to purchase Saab, many thought that General Motors would dump the Swedish automaker much like it did the Saturn brand. But it appears that The General is still willing to look for another interested party, and speculation is that two perspective buyers are at the front of the line. The Swedish press is reporting that China's Beijing Automotive (BAIC) and Wyoming-based merchant bank Merbanco have shown renewed interest in perennially cash-poor Saab.

Saab spokeswoman Gunilla Gustavs reportedly told Automotive News that there were 27 suitors interested in the Swedish automaker prior to Koenigsegg becoming the preferred bidder and confirmed that there are now other bidders interested. "We have a close dialog and close contact with several who have expressed interest in buying Saab Automobile," Gustavs says.

if another bidder does win the opportunity to purchase Saab, they'll inherit an automaker that expects to lose $427 million in 2009 and a similar amount of cash in 2010. That buyer will also run into plenty of resistance when trying to get its hands on GM's technology assets. One issue that reportedly derailed the Koenigsegg bid was GM's reluctance to share its tech for new products like the new Saab 9-5. On the upside, the aforementioned 9-5 sedan has just begun serial production, the 9-3X allweatherwagon is ready to go, and the 9-4X looks to be just around the bend, too.

Earlier in the week, GM released a statement stating that it would "take the next several days to assess the situation and will advise on the next steps next week." Thanks for the tips, everyone!

Gallery: 2010 Saab 9-5

[Sources: Autocar; Automotive News; Auto Motor und Sport]

REPORT: Saab still has at least two interested parties - BAIC and Merbanco originally appeared on Autoblog on Sat, 28 Nov 2009 09:40:00 EST. Please see our terms for use of feeds.

Read | Permalink | Email this | Comments

REPORT: China's Changan delays plan to enter North American auto market

Jonathon Ramsey — Wed, 25 Nov 2009 08:44:00 EST

Filed under: China, Plants/Manufacturing, Earnings/Financials

Changan is coming to America, just not yet. Aiming to establish a base in Mexico with which to move into the U.S. market, the Chinese automaker signed a deal last year to build a plant south of the border. The familiar story of planetary financial catastrophe has encouraged Changan to tap the brakes on its plans, however.

Said the company's R&D head to Reuters, "We are still doing market research there. There won't be any big investment for the time being." As if the crisis weren't enough, Changan, like other Chinese makers, is also looking at getting into the luxury market with a vehicle developed in-house, and that will divert potential resources from overseas expansion. That means we Americans won't get to sample MPVs like the Changan Joice (shown above) for a while longer.

[Source: Reuters]

REPORT: China's Changan delays plan to enter North American auto market originally appeared on Autoblog on Wed, 25 Nov 2009 08:44:00 EST. Please see our terms for use of feeds.

Read | Permalink | Email this | Comments

Williams sells minority stake to Austrian investor

Noah Joseph — Wed, 25 Nov 2009 07:55:00 EST

Filed under: Motorsports, Hirings/Firings/Layoffs, Earnings/Financials

With all the money that goes into running an F1 team, and the limited opportunity to make any of it back, we can't see why anyone would view owning a team as a sound investment. Evidently Herr Toto Wollf feels otherwise, as the Austrian financier and gentleman racing driver has acquired a minority interest in Williams Grand Prix Engineering.

This marks the first time in over 30 years of operations that Frank Williams and Patrick Head, the two team principals, have sold shares to an outside party. For his part, Sir Frank insists that business will carry on as usual, that they're not relinquishing control over the team, and that the sale was simply a way of ensuring the team's financial viability. Tellingly, though, he also indicated that Wolff, some 30 years younger than Williams and Head and the veteran of local rallies and international sportscar racing, could take the reins some day in the future.

The announcement comes hot on the heels of reports that Renault - once Williams engine partner during its heyday - was considering a similar move. Follow the jump to read the official announcement, complete with Toto Wolff's bio.

[Source: Williams]

Continue reading Williams sells minority stake to Austrian investor

Williams sells minority stake to Austrian investor originally appeared on Autoblog on Wed, 25 Nov 2009 07:55:00 EST. Please see our terms for use of feeds.

Permalink | Email this | Comments

REPORT: GM offering special discounts to rejected franchise customers, move angers dealer group

Michael Harley — Tue, 24 Nov 2009 13:30:00 EST

Filed under: Car Buying, Buick, Cadillac, Chevrolet, GM, Earnings/Financials

Realizing that one of its keys to survival is retaining existing owners, General Motors is proactively enticing nearly one million customers - those loyal to now-closed dealerships - with significant financial incentives. According to Automotive News, GM started sending 950,000 letters out last week to customers of stores which have shut down or lost a brand franchise. Included in the correspondence are $1,000 to $2,000 discounts towards purchasing vehicles from one of GM's four surviving U.S. brands (the incentive amount is based on the customer's "likelihood to purchase a GM vehicle and the relative distance to the next closest dealer," according to a letter GM sent to dealers outlining the program).

General Motors has about 5,860 dealerships right now. A total of 1,839 have agreed to shut down by October of 2010, helping the company downsize to between 3,600 and 4,000 retailers over the long term. While this incentive is scheduled to end January 4, a second wave of incentives (including one targeting Saturn customers) is expected to begin early next year. In addition, GM has also issued a service offer which runs through May that includes free vehicle inspections and tire rotations to displaced customers.

The retention programs - obviously meant to move customers between stores - have dealer advocate groups up in arms. Some dealers are still actively trying to get their franchises off the "kill list," and GM has said recently that some may in fact be welcomed back into the fold. As such, Automotive News quotes Tamara Darvish, a leader of the Committee to Restore Dealer Rights as saying "This is an inappropriate time to take such an aggressive measure... If in fact dealer rights are to be restored, why would GM go in and move all those customers?"

[Source: Automotive News, subs. req'd | Image: Mark Ralston/Getty]

REPORT: GM offering special discounts to rejected franchise customers, move angers dealer group originally appeared on Autoblog on Tue, 24 Nov 2009 13:30:00 EST. Please see our terms for use of feeds.

Permalink | Email this | Comments

BREAKING: Koenigsegg backs out of Saab purchase, brand future up in the air

Chris Paukert — Tue, 24 Nov 2009 11:27:00 EST

Filed under: Hirings/Firings/Layoffs, Plants/Manufacturing, Saab, Earnings/Financials

2010 Saab 9-5 - Click above for high-res image gallery

After riding in on a white horse, Koenigsegg Group AB has pulled out of negotiations to buy Saab from General Motors, leaving the Swedish automaker's future very much in doubt. In a brief statement issued by GM (available after the jump), president and CEO Fritz Henderson says that the company is "very disappointed with the decision to pull out of the Saab purchase."

It is unclear what will happen to the brand now, but if Saab fans can hold on to any hope, GM says it will "take the next several days to assess the situation and will advise on the next steps next week." It is worth noting that this is different from the brief announcement that GM issued when Roger Penske's group pulled out from buying Saturn - GM immediately announced that they would begin "winding down" the brand. There was at least one other serious bidder interested in purchasing Saab previous to Koenigsegg becoming the preferred purchaser, but it isn't immediately clear if they are still interested, or if their financial backing checked out to begin with.

We suspect that even if Saab is unable to survive as a brand, someone will step in and purchase the assets to the already tooled-up forthcoming 9-5 sedan - perhaps the Chinese - and potentially the newish 9-3/9-3X as well.

Gallery: 2010 Saab 9-5

[Source: General Motors]

Continue reading BREAKING: Koenigsegg backs out of Saab purchase, brand future up in the air

BREAKING: Koenigsegg backs out of Saab purchase, brand future up in the air originally appeared on Autoblog on Tue, 24 Nov 2009 11:27:00 EST. Please see our terms for use of feeds.

Permalink | Email this | Comments

REPORT: BMW hoodwinked by fraudster in sale of Sauber F1 team

Noah Joseph — Tue, 24 Nov 2009 08:25:00 EST

Filed under: Motorsports, BMW, Earnings/Financials

Questionable past acquisitions aside, you don't get to be as large and successful as BMW without having some business acumen. That assumption, however, is being cast into question as reports out of Germany suggest that the Bavarian automaker may have been duped in its sale of the Sauber F1 racing team.

Peter Sauber's eponymous racing team joined the F1 grid in 1993, and raced for a dozen seasons independently before BMW bought the team in 2005. But earlier this year, the German automaker announced it would withdraw from the sport, leaving Sauber to look for a new investor. A mysterious Swiss finance firm called Qadbak Investments stepped up, and the sale was completed. Having missed the deadline to re-commit for 2010, however, Sauber was replaced by newcomer Lotus, but since Toyota vacated its position, Sauber has been waiting on the FIA to give them the go-ahead. And now we're starting to understand the FIA's hesitance.

According to emerging reports, it appears that Qadbak - which also recently acquired the Notts County football team in England and was supposedly backed by a couple of reclusive, wealthy Middle Eastern families - is little more than a string of shell companies for a convicted British fraudster based in Dubai. Apparently Russell King, the fraudster at the end of the Qadbak paper trail, was trying to tap into the shared F1 revenue streams split between the teams in the series. Having finished sixth in the constructors' championship this season, the Sauber team would be entitled to a considerable slice of the pie.

The revelation raises more questions than it answers, but we're expecting the whole picture to come into focus over the coming weeks, so stay tuned.

[Source: SonntagsZeitung via Axis of Oversteer]

REPORT: BMW hoodwinked by fraudster in sale of Sauber F1 team originally appeared on Autoblog on Tue, 24 Nov 2009 08:25:00 EST. Please see our terms for use of feeds.

Read | Permalink | Email this | Comments

REPORT: Chrysler could lose up to 145 more dealers because they can't get financed

Jonathon Ramsey — Mon, 23 Nov 2009 10:30:00 EST

Filed under: Chrysler, Earnings/Financials

Chrysler's dealers haven't yet entered the portion of the game wherein they can catch a break. As if the dearth of inventory and lack of new vehicles weren't enough, nearly 150 dealers haven't been able to finalize floorplan financing. Since Chrysler Financial has exited that business, GMAC stepped in, but dealers are having a hard time meeting its terms: 85 have been turned down flat, another 60 or so are still working on it.

In some cases GMAC has asked for more collateral; in at least one other case, GMAC is looking for the dealer to alter the lending structure of his mortgages (not floorplan), held by Chrysler Financial. The former Pentastar piggy bank, again accused of trying to wind down its operations, said it "continues to cooperate" with all involved. If the rumored number of dealers does fall, it would take Chrysler's planned closures up to nearly 1,000, after the 789 announced earlier this year.

[Source: Bloomberg | Image: Mark Ralston/Getty]

REPORT: Chrysler could lose up to 145 more dealers because they can't get financed originally appeared on Autoblog on Mon, 23 Nov 2009 10:30:00 EST. Please see our terms for use of feeds.

Read | Permalink | Email this | Comments

REPORT: Tesla Motors planning IPO "soon"

Sebastian Blanco — Fri, 20 Nov 2009 15:30:00 EST

Filed under: Earnings/Financials, Tesla, Electric

Tesla Roadster - Click above for high-res image gallery

Rumors about Tesla's plan to go public have been circulating since 2008, but a down stock market seemed to put a damper on the start-up's IPO. Now, the word ~~on the street~~ from Reuters is that Tesla is planning to go public "soon." When might that be, exactly? Who knows. A source told Reuters it could happen "any day," but Stephan Dolezalek, managing director of VantagePoint Venture Partners and a Tesla investor, said in September that it's unlikely to happen in 2009.

For its part, Tesla continues to offer little guidance on the report other than to dismiss it as "rumor or speculation." We shall see...

Gallery: First Drive: Tesla Roadster

[Source: Reuters]

REPORT: Tesla Motors planning IPO "soon" originally appeared on Autoblog on Fri, 20 Nov 2009 15:30:00 EST. Please see our terms for use of feeds.

Read | Permalink | Email this | Comments

Swedish Pickle: Study says GM lost $5,000+ on each Saab sold over the last 8 years

Jonny Lieberman — Fri, 20 Nov 2009 10:31:00 EST

Filed under: Car Buying, Saab, Earnings/Financials

2008 Saab 9-3 Turbo X - Click above for high-res image gallery

When the automotive history of the last ten or so years is written, one of the most curious chapters will be why big, flush with cash American car companies purchased relatively diminutive, relatively oddball Swedish brands. Ford and Volvo, while still not a match made in heaven, at least gave it a go, sharing platforms and technology. The merger has yielded some good results, too. Anyone that's driven cars like the Flex or new Taurus can attest to how well Ford skin draped over a Volvo-based chassis works - especially when motivated by a twin-turbocharged, direct-injected motor.

General Motors acquisition of Saab on the other hand, was basically a complete and total disaster. Saab suffered mightily at the hands of the General, being forced to accept Opel underpinnings with hard points that prevented hatchbacks and therefore alienated the brand's five-door loving base. The 9-5 (formerly the 9000) languished and essentially died on the vine. The Saabaru (9-2X) proved the no one wanted to pay a $5000 premium for a WRX with nice seats, and the 9-7X was for all intents and purposes a Chevy Trailblazer with the ignition key stuck between the seats. Worse, with Saturn morphing into the American branch of Opel, Saab was the afterthought after the afterthought.

According to an article in Sweden's di, GM lost $5,100 on every Saab it has sold over the last eight years. The how is murky, but the why is that they spent a lot of money to purchase Saab and then didn't sell very many of them. Moreover, it's costing GM a pretty penny to unload Saab. Just about $900,000,000 to put a number on it. All in, General Motors lost nearly $6 billion dollars with Saab in the eight years they spent together. A total waste on both sides of the Atlantic. Here's hoping for better things from the (still pending) Koenigsegg marriage.

Gallery: 2008 Saab Turbo X

[Source: di.se via TTAC]

Swedish Pickle: Study says GM lost $5,000+ on each Saab sold over the last 8 years originally appeared on Autoblog on Fri, 20 Nov 2009 10:31:00 EST. Please see our terms for use of feeds.

Permalink | Email this | Comments