General Motors
General Motors and Chrysler securing more government loans
We all know that the recent world economic crisis pushed both General Motors and Chrysler to the verge of bankruptcy and eventually both American auto companies have been given bailouts worth billions of dollars from the US government. With the financial surge both companies managed to steer themselves around the financial turmoil.
The recent news out of Detroit is that both General Motors and Chrysler are seeking more loans that collectively amount up to US$23 billion. The companies are applying the loans from US’ Department of Energy which has given out loans amounting to US$9 billion.
GM is requesting US$14.4 billion while Chrysler is applying for a US$8.55 loan. Both companies plan to use the loans to upgrade their factories. The loan program is part of an effort to stimulate the development of fuel efficient vehicles that use at least 25% less fuel compare to similar-sized models.
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).
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.
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.
Spyker to submit final proposal to GM and reveals plans for Saab
Dutch sports car maker Spyker has revealed that it will submit a third or final proposal to General Motors for the purchase of the troubled Saab brand. The new proposal will be passed on before the January 7th deadline that was set recently. “We have gotten time for a final offer. Nothing has been rejected,” said Spyker CEO Victor Muller during an interview with Reuters. Some reports are also suggesting that if a deal is not finalized by Thursday, General Motors will close the Swedish brand down.
Spyker also released information concerning it’s plans for Saab should the deal go through. It plans to rebuild the company by focusing on the 9-3, 9-5 and 9-4X crossover models. It would also introduce a new 9-1 model that will be positioned as an entry-level Saab. Saab would still be based in Trollhattan, Sweden where it has a plant. Most of Saab’s vehicles will be manufactured here but some may not.
The 9-4X is expected to be produced at General Motors’ plant in Mexico which means both Saab and General Motors should maintain certain production arrangements where the American auto giant is expected to continue the supply of engines to Saab. I hope Thursday will bring good news and that Saab’s journey to the grave will be called off.
GM extends December 31st deadline for bids on Saab, Production to restart
A published report by news agency Reuters indicated that General Motors has extended the December 31st deadline for the sale of Saab to January 7th. It was also revealed that Saab will restart its production lines in January for the 9-5 since the company has received orders. It will also output the Saab 9-3 model.
Spyker has been heavily linked with the sale of Saab and the company’s chief executive Victor Muller also said that he believes that there are now multiple bidders for the Swedish brand but did not disclose who there are.
If the deal between Spyker and Saab (General Motors) goes through, Spyker would benefit from Saab’s technical resources and its distribution network, while Spyker would bring entrepreneurial expertise to Saab, according to Muller. He also said that both Spyker and Saab would operate as sister companies.
The report also stated that the Swedish government is willing to allocate US$ 75 million (542 million Swedish crowns) to help cope with the thousands of jobs that are expected to be lost if General Motors decides to shut down the 60 year-old brand, and we are talking about 3,400 jobs in Sweden.
The brand also has 1,100 dealers. At least the good news is that the deadline has been extended and the production lines will restart January.
5.00 pm deadline by Spyker on Saab offer extended
Spyker has revealed that the 5.00 pm deadline for General Motors following the presentation of a new proposal to purchase Saab has been extended until further notice. Spyker expressed its interest after Koenigsegg withdrew from taking over Saab from General Motors. General Motors then revealed that negotiations with Spyker hit a road block and then announced that it will shut the Swedish brand down.
Spyker then came up with a stronger 11-point proposal that was valid until 5.00 pm EST on the 21st of December 2009. Spyker’s CEO Victor Muller said, “It is open-ended. It has been extended until further notice.” Looks like we will have to wait until the American auto giant reveals its decision.
