Automotive Business News
Geely secures financing worth US$ 2.1 billion for Volvo deal
Geely, the Chinese company which is set to take over struggling Volvo from Ford has secured financing for the purchase. The financing is said to be worth US$ 2.1 billion but the source of the sum was not disclosed. With this Geely is likely to seal the acquisition by end of this month.
Reports are also suggesting the Geely will maintain Volvo’s production hub in Sweden however some are saying the the Chinese company will shift production to China. If this happens about 16,000 workers in Sweden may lose their jobs. As for setting up production in China, a 300,000-unit production is expected annually. This number is almost double Volvo’s current output worldwide.
Tata Nano EV revealed in Geneva, Daimler sells 5.34% stake in Tata
Tata has revealed an all electric variant of the Nano supermini at the Geneva Motor Show. The Nano EV features a super polymer lithium ion battery pack which was also featured on the Tata Indica Vista EV. Unfortunately the company did not reveal more information about the Nano EV’s powertrain.
However the press release did mention that the Nano EV has an estimated range of 160 kilometers and its 0 – 100 km/h acceleration time is figured at below 10 seconds. Tata also revealed that the Nano EV is expected to be launched sometime in 2012. Meanwhile the Euro-market Tata will be introduced in 2011. This model will be slightly longer than the Indian-market Nano and will feature better suspension and brakes with ABS.
In another development Daimler AG has sold its 5.34% stake in Tata. “Daimler is today in an excellent position to capitalize on the growth potential of the Indian passenger and commercial vehicle markets and continues to intensify its own activities there,” the German auto giant said in a statement.
“An equity participation of Daimler in Tata is therefore no longer necessary. This has been done in full consultation with Tata. Relations between the two companies are excellent and will not be adversely affected by this sale,” it added. The sale is said to generate about US$401 million.
Spyker shareholders give “green light” to Saab deal
Shareholders of Spyker have given the green light to the US$74 million purchase of Saab from General Motors where US$50 have already been secured while the balance should be ready by July. According to the source the combined company (Spyker and Saab) will seek listings on the London Stock Exchange and the Stockholm Stock Exchange and delist from the Euronext Amsterdam exchange.
The new company will also have US$326 million in redeemable preference shares issued to General Motors, US$200 million in cash and a US$547 million loan from the European Investment Bank (EIB).
Geely to pay US$ 1.8 billion for Volvo?
According to a report by Trading Markets, China-based Geely will have to part with US$ 1.8 billion on February 8th in order to take over Volvo from Ford. At the same time rumors are circulating that Ford may let the Swedish brand go for as low as US$ 1.6 billion. Ford first took over Volvo in 1996 for a sum of US$ 6.45 billion. More information should be revealed once we enter the second month of the year.
Opel’s Antwerp plant in Belgium to close by end of 2010
General Motors has announced that Opel’s Belgian factory in Antwerp will be shut down by end of the year. General Motors revealed that in order to reduce overcapacity and to ensure a brighter future for the brand, Opel’s production has to be cut by nearly 20%. The American giant will also work on restructuring its European operations and both Opel and Vauxhall will be affected. General Motors will undertake measures like capacity reductions, job redundancies and labor cost reductions.
Bosch working on a common-rail diesel engine for the Nano
Bosch is developing a new common-rail diesel unit that will be used in the super affordable Tata Nano. Recent reports indicate that the diesel powerplant features a single cylinder design and that the displacement is about 570cc. The compact engine is expected to produce about 27hp with an adequate amount of torque.
This is part of Bosch’s investment in India where the German automotive supplier will inject Rs 2000 crore (US$ 430 million) in India for a period of three years until 2012. The company plans to manufacture up to two million diesel engines a year by 2013. Bosch is already supplying Tata with brake components, starter, alternator as well as a fuel injection system for the Nano.
GM gets AlixPartners to wind-down Saab but will continue to evaluate bids
General Motors has hired a corporate restructuring firm called AlixPartners to help wind-down Swedish auto brand Saab if it is not sold in time. At the same time General Motors also assured that it is still evaluating bids for the brand and that the appointment of AlixPartners will does not affect the evaluation. It also said that hiring a company such as AlixPartners during such a situation is a common practice in Sweden.
Currently there are two bidders that we know of including Spyker and the duo of Genii Capital and Formula 1’s “Godfather” Bernie Ecclestone. Genii Capital is a Luxembourg-based company that recently purchased majority stake in Renault’s Formula 1 outfit.
There is also a third bidder apparently, according to the Swedish media. This third bidder is Jan Nygren who heads group of Swedish investors. Nygren is a former executive of the aerospace arm of Saab and former senior official in Sweden’s defense ministry.
Bernie Ecclestone and Genii Capital put in last minute bid for Saab!
Victor Muller, CEO of Spyker Cars, the exclusive supercar maker that is looking to take over Saab, has always thought that his firm weren’t the only ones talking to GM. His hunch was proved right as Formula 1 supremo Bernie Ecclestone together with Genii Capital lodged a last minute bid to save Saab.
Genii Capital, the Luxembourg-based private-equity firm that bought a majority stake in Renault’s F1 team last month, is offering cash for Saab, according to reports. Spyker also put in a revised offer before yesterday’s deadline – an extension from the original Dec 31 2009 cut off date.
“It’s a good brand that has probably been neglected by the current owners,” Ecclestone, 79, said in a phone interview. “We don’t own it yet, so let’s see what happens.”
Bernie and Genii plan to use former bidder Koenigsegg’s business plan for Saab and make the automaker profitable by 2012 with production of 105,000 vehicles a year, Lars Carlstroem, a Swedish investor working with Genii said.
“It is a true opportunity and we’re surprised that more investors haven’t identified this opportunity,” he said. Genii Capital “loves brands and Saab is a strong brand on the same level as Porsche and BMW,” he added.
