Autoblog

REPORT: BAIC only interested in parts of Saab, "White Knight" looking increasingly unlikely

Dan Roth — Tue, 08 Dec 2009 11:01:00 EST

Filed under: China, Etc., Europe, Plants/Manufacturing, GM, Saab

It seemed pretty obvious when we first heard that China's BAIC wanted Saab's tooling that it didn't want anything to do with purchasing the Swedish automaker's full monty. If BAIC wanted to be in the Saab business, clearly, it would have made overtures for more than just the retired tooling from the older versions of the 9-5 and 9-3. BAIC wants the cars and all the stuff that Saab made to make them, so as to have something else to sell in its home market. The rest of Saab, such as its Trollhattan headquarters and workforce apparently aren't of interest to BAIC, which just secured a line of credit from the Bank of China, presumably to finance this purchase.

General Motors is said to still have some suitors interested in the whole shooting match, instead of BAIC's cherry picking. Since the deal with Koenigsegg fell apart, Spyker has indicated interest in Saab, as has a private concern called Renco Group. Any deal will be carefully vetted by General Motors, and will have a short time-table for completion. If BAIC's bid for the parts of Saab carries through, the rest of the company will almost certainly head for liquidation. It's looking increasingly likely that there will be no stay of execution for Saab, no white knight riding in to save this Swedish automaker in distress. Still, it ain't over until it's over...

[Source: Reuters | Image: AFP/Getty]

REPORT: BAIC only interested in parts of Saab, "White Knight" looking increasingly unlikely originally appeared on Autoblog on Tue, 08 Dec 2009 11:01:00 EST. Please see our terms for use of feeds.

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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.

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REPORT: BAIC/Koenigsegg may produce Saab 9-5 in China

Michael Harley — Sat, 07 Nov 2009 14:26:00 EST

Filed under: China, Government/Legal, Plants/Manufacturing, Saab

Beijing Automotive Industry Holding Co. (BAIC), announced as a minority partner in Koenigsegg's deal to purchase Saab from General Motors two months ago, plans to produce the Saab 9-5 on Chinese soil next year. The involvement of BAIC in the Saab transaction helps Koenigsegg close the deal and gives the Chinese company leverage to re-badge the previous-generation Saab 9-5 as its own or to simply expand the brand's existing reach within the country.

In September, Saab CEO Jan-Ake Jonsson told reporters he wanted to double the number of Chinese Saab dealers from 15 to 30, and that he had an interest in local Chinese production. "Beijing Auto is an opportunity for us to establish ourselves in the Chinese market with their experience," the CEO said. Under current plans, Saab imports all cars to China, where they're sold under the Shanghai General Motors network. Sales have been slow, but promoting the brand under the watchful eye of BAIC may help the brand gain traction in China's huge automotive market.

[Source: Gasgoo]

REPORT: BAIC/Koenigsegg may produce Saab 9-5 in China originally appeared on Autoblog on Sat, 07 Nov 2009 14:26:00 EST. Please see our terms for use of feeds.

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REPORT: Major obstacle cleared as Swedish government to guarantee $615M EIB loan for Saab

Jonathon Ramsey — Tue, 06 Oct 2009 10:58:00 EST

Filed under: Europe, Government/Legal, Saab

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

A major hurdle in Saab's transfer to the homegrown hands of Sweden's Koenigsegg has been surmounted: the Swedish government has agreed to guarantee a 4.3 billion kroner ($615M U.S.) loan from the European Investment Bank to the Koenigsegg consortium. That represents the final funding the maker of the CCX needs in order to compete the financing of the deal.

The next hurdle is for the European Investment Bank to consent to give Koenigsegg the money. A Swedish government representative said he hoped the EIB would decide before the end of the month. If that happens and things goes favorably, Koenigsegg may still get the deal done on its original timeline, the end of the year.

Gallery: 2010 Saab 9-5

[Source: Reuters]

REPORT: Major obstacle cleared as Swedish government to guarantee $615M EIB loan for Saab originally appeared on Autoblog on Tue, 06 Oct 2009 10:58:00 EST. Please see our terms for use of feeds.

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REPORT: Outgoing Saab 9-5 to live on... as Chinese BAIC

Jeremy Korzeniewski — Fri, 02 Oct 2009 09:27:00 EST

Filed under: Sedan, Wagon, China, Plants/Manufacturing, Saab

If Billy Joel is right that only the good die young, the outgoing Saab 9-5 has been very, very bad. In automotive terms, the 9-5 is positively ancient, having first seen the light of day in 1997 and getting very little in the way of meaningful changes since that time.

If, though, you happen to like cars that feature a design that's... shall we say, "proven," we have some good news to report. According to Autocar, the old 9-5 will get a new lease on life from China's Beijing Automotive Industry Corporation (BAIC). It's not clear what changes (if any) will be made to the car in its new incarnation, or if BAIC will also purchase the rights to Saab's turbocharged four-cylinder engines.

Last month, BAIC made a $400 million investment into the Swedish automaker, becoming a minority shareholder in Koenigsegg, Saab's new parent company. As for the 9-5 in America, well... let's just say we're happy to be getting the completely reengineered 2010 model.

[Source: Autocar]

REPORT: Outgoing Saab 9-5 to live on... as Chinese BAIC originally appeared on Autoblog on Fri, 02 Oct 2009 09:27:00 EST. Please see our terms for use of feeds.

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REPORT: China's Beijing Automotive takes minority stake in Saab

Jonathon Ramsey — Wed, 09 Sep 2009 13:28:00 EST

Filed under: China, Europe, Saab

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

It had been reported that SAIC had quietly taken a stake in Saab in conjunction with the Koenigsegg Group. However, it's been confirmed that Beijing Automotive -- which also recently made a play for Opel -- has grabbed a share of the Trollhätten pie.

BAIC provided the $400 million difference in cost that Koenigsegg needed to complete the sale and the final financial hurdle is for the Swedish government to guarantee a $600 million loan from the European Investment Bank to Koenigsegg.

Those kinds of numbers mean that Saab will be more expensive than Aston Martin, which might sound a little odd -- especially for a company that sold just 93,000 cars last year. But the tie to BAIC -- and Russia, Augie Fabela, a cell-phone company magnate -- could open up two enormous markets that will give Saab access to market numbers that could justify its purchase price and existence. Full press release from Koenigsegg after the jump.

Gallery: 2010 Saab 9-5

[Source: Koenigsegg]

Continue reading REPORT: China's Beijing Automotive takes minority stake in Saab

REPORT: China's Beijing Automotive takes minority stake in Saab originally appeared on Autoblog on Wed, 09 Sep 2009 13:28:00 EST. Please see our terms for use of feeds.

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German economics minister reportedly says no to Opel buy-back option for GM

Sam Abuelsamid — Mon, 20 Jul 2009 09:29:00 EST

Filed under: Government/Legal, GM, Opel

One of the many clauses that General Motors is reportedly trying negotiate into any deal involving majority control of Opel is the option to eventually buy back the stake it is selling.

As the theory goes, GM isn't selling Opel because it feels like it doesn't add value - Opel in fact offers huge value to GM and has had lead responsibility for developing the global mid-sized, compact and small car platforms being used by the automaker. Instead, Opel is on the block because the home office needs the cash. Thus, if GM is able to be flush with cash once again, it would like to reserve the right to regain to full control.

According to Reuters, Karl-Theodor zu Guttenberg, Germany's economics minister is having none of that business. In fact, he has apparently told Frankfurter Allgemeine Sonntagszeitung that no such clause would be allowed if Opel is to receive any German government aid. The German government is also wary of any financial groups like Belgium's RHJ International taking a stake - instead, they reportedly prefer an owner with a long term interest in the industry like Magna International.

[Source: Reuters | Image: Ralph Orlowski/Getty]

German economics minister reportedly says no to Opel buy-back option for GM originally appeared on Autoblog on Mon, 20 Jul 2009 09:29:00 EST. Please see our terms for use of feeds.

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Beijing Automotive bids for Opel; Magna still expected to close deal

Jonathon Ramsey — Sun, 05 Jul 2009 11:07:00 EST

Filed under: China, Europe, GM, Opel, Vauxhall

Even though Beijing Automotive (BAIC) tendered a non-binding offer for Opel, the company is said to have no chance of actually acquiring the brand. General Motors is still in talks with Magna and its partners, GAZ and Sberbank, and according to Sberbank CEO German Graf, "The choice has been made and the question now is of how to structure the deal."

Observers also feel that the GM-Magna agreement is merely waiting on some dotted I's, crossed T's and that the deal won't fall apart unless Magna blows it up or walks away. That hasn't stopped GM and the German government from creating the appearance of courting other bidders for Opel and Vauxhall, including BAIC and Belgium's RHJ.

BAIC appears to be serious, even if everyone assumes that GM's just using it as a decoy. Magna wants to get the paperwork inked by July 15, and that's around the same time that BAIC wants to make a binding offer for Opel's purchase. It's working with Deutsche Bank and PriceWaterhouse Coopers on its proposal, and we can only assume BAIC will be ready with a bag full of cash in the unlikely event Magna exits stage left.

[Source: Auto News, sub req'd]

Beijing Automotive bids for Opel; Magna still expected to close deal originally appeared on Autoblog on Sun, 05 Jul 2009 11:07:00 EST. Please see our terms for use of feeds.

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