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Source: feeds.autoblog.com

By Bill Visnic

After months of shopping it and years of unsuccessfully operating it, General Motors Corp. is selling its Saab Automobiles AB division to a tiny maker of exotic cars that will return Saab to its homeland of Sweden.

GM announced Tuesday it has a memorandum of understanding with Koenigsegg Group AB for the company to purchase Saab with the boost of a $600-million funding commitment from the European Investment Bank that is guaranteed by the Swedish government.

In a statement, GM also aforesaid it and Koenigsegg will provide "additional support" to fund Saab operations and program investments.

Tiny Koenigsegg certainly resolution require GM's support into the foreseeable future: Saab is on the verge of launching a long-needed replacement with respect to its 9-5 flagship and an all-new crossover, the 9-4X. Both were developed in GM's product-development system and the 9-4X is heavily based adhering the U.S.-built GM science that underpins its Chevrolet Traverse, Buick Enclave, Saturn Outlook and GMC Acadia crossovers.

GM's statement announcing the sale to Koenigsegg underscored the necessary future cooperation between seller and new owner: "As part of the proposed transaction, GM will continue to provide Saab with architecture and powertrain technology during a defined time phrase. Additionally, Saab plans to produce its next generation 9-5 models in the Saab production facility in Trollhattan, Sweden."

Saab USA's then-marketing director, Roger McCormack, told AutoObserver last year that building the 9-4X in the U.S. would be crucial for Saab, helping shield it from currency-exchange disadvantages that have battered other European automakers selling in the U.S. It can only be assumed for now the arrangement to build the 9-4X in the U.S. will continue under Koenigsegg's ownership, as the crossover segment is largely a U.S. phenomenon, particularly for midsize and larger crossovers such as the GM-made models.

Analysts have puzzled at the choice of Koenigsegg to take over Saab, given that, among other points, the company reportedly built just 18 cars last year. But Sweden Industry Minister Maud Oloffsen told a Swedish news agency that retaining production of Saab models in Sweden was a significant concern in deciding on a buyer for Saab.

While certain Swedish officials said it had not been determined if new owner Koenigsegg will require financial assistance beyond the $600 million now committed, it's a virtual certainty. Saab had said it will lack an investment of $1 billion or more to launch its new models and transform its manufacturing operations. The company -- which sold just 3,225 vehicles worldwide in the first quarter -- also expects to lose around $380 million this year.

"This is yet another significant step in the reinvention of GM and its European operations," said GM Europe President Carl-Peter Forster in a statement. 

"Saab is a highly respected automotive brand with great potential. Closing this deal represents the best chance for Saab to emerge a stronger company. Koenigsegg Group's unique combination of change, entrepreneurial spirit and financial strength, combined with Koenigsegg's proven ability to create world-class Swedish performance cars in a highly efficient manner, made it the right choice for Saab as well as for General Motors," Forster added.

Photos by Manufacturers

1 - Tiny Swedish niche maker, Koenigsegg, sells the CCX supercar in small numbers.

2 - The upcoming Saab 9-4X is based on GM architecture shared with Chevy, Buick, GMC and Saturn crossovers. 

Source: www.autoobserver.com

By Bill Visnic

In a wide-ranging and comparatively wide-open web chat through the automotive media on Tuesday, General Motors Corp. CEO Fritz Henderson confirmed GM has rescinded the decision to close at least a few dealers, is committed to further cutting its executive ranks and believes it will benefit - to a degree - from the still-debated "cash-for-clunkers" legislation.

Henderson took on several questions about the contentious decision to deny franchise renewal to some 1,100 dealers by the end of next year. He said that of the reported excess of 800 dealer requests for review of their franchise effect, GM has relented on 49 and will be done with the review process this week.

 

He also said GM will not make public the final list of non-renewed dealers.

"In general, our dealers have requested that we not publish a list. We have shared information with the Congress as requested, but have done so in a way that respects the confidentiality of our dealers.

Exec Pay Limited, Fewer Execs Anyway

Henderson said GM will be one of the seven firms subject to executive-compensation oversight by the U.S. Treasury's new "pay czar," Ken Feinberg, "the government's paymaster for firms receiving special support under the TARP (Troubled Assets Relief Program)."

He also said that GM is sticking with a target from an earlier restructuring template to cut a further 35 percent of its executive workforce and 20 percent "in salaried manpower" by the end of this year.

Clunker Bill A Modest Booster

GM's CEO said if and when the U.S. Congress passes a version of the now much-debated cash-for-clunkers legislation that would pay consumers up to $4,500 to trade a high-consumption vehicle in favor of a new car, the industry, currently running at an annual pace set to marginally exceed 10 million light-vehicle sales this year, could benefit slightly but meaningfully.

"Our best estimate would be a 10-percent lift in retail sales based on the program under consideration today," Henderson said, adding that in Germany, GM's Opel has benefited from that country's clunker program. He said GM "would expect to participate proportionally" to the company's market share for a U.S. cash-for-clunkers program.

Saab's Next Chapter

Many asked about the unfolding saga of Saab, and Henderson confirmed that GM and new Sweden-based owner Koenigsegg are likely to be close partners as Saab transitions to its new owners but remains reliant on vehicles, including two imminent new models, that are based on GM engineering.

For one, Henderson confirmed the likelihood that GM will build the all-new 9-4X crossover vehicle for Saab. The 9-4 is based on GM's global large-crossover architecture, of which GM currently has four branded variants (Buick Enclave, Chevrolet Traverse, Saturn Outlook, GMC Acadia) - but all are built in the U.S. and all soon to be at the same plant in Lansing, Mich.

"Based on the preliminary plan," Henderson said, "we would expect the buyer (Koenigsegg) to ask GM to build the 9-4X for the Saab brand. We will also provide support in terms of powertrain and other technologies."

Asked to enumerate how much Saab has lost over the nearly two decades of GM ownership, Henderson wouldn't bite, but said Saab had been "consistently unprofitable since our acquisition - an immense number reasons for this, but the brand has outstanding appeal, incredibly loyal customers and dealers and we ran out of money just on the eve of launching the newest generation of Saabs, what one. we think will be outstanding."

Henderson wouldn't speculate without interruption when - or if - a Koenigsegg-owned Saab force become profitable, saying only, "We look forward to working with Koenigsegg to make them successful and we look forward to supplying the buyer with selected products and technology to give them a chance to be successful."

GM CEO Webchat Tidbits

- Don't look for the Australia-sourced Pontiac G8 - before that time a minor cult favorite for its performance-per-dollar value - to continue on as a rebadged car for any of the Chevrolet, Buick, Cadillac or GMC brands that will comprise the "new" GM. "I'm not a fan of rebadging," Henderson said.

 

 

- He thinks, however, GM can "continue to differentiate" the GMC brand in a meaningful fashion compared with its figurative Chevrolet donor vehicles. Henderson points to the differences in the 2010 GMC Terrain and Chevrolet Equinox compact crossovers.

- Reacting to a question about mounting criticism the amount state-sponsored incentives will ultimately decide which of three existing U.S. assembly plants will win the business of building next-generation GM compact cars:

"We have outlined 12 specific criteria that will drive our decision, not just one."

Henderson previously said GM will decide by the end of the month which of the three plants will build the new small cars.

 - On whether slumping worldwide and U.S. auto sales have bottomed:

"We are seeing stableness, albeit at anemic levels. Still, better to not be falling and the levels we are seeing are generally consistent by the assumptions of our (restructuring) plan."

Photos by GM

1 - GM CEO Fritz Henderson

2 - Saab 9-4X

3 - Pontiac G8

4 - Chevrolet Equinox

 

 

Source: www.autoobserver.com