Koenigsegg Group AB Terminates Agreement For Purchase of Saab
24 November 2009
Koenigsegg Group AB has terminated the agreement for its proposed purchase of GM’s Saab. GM President and CEO Fritz Henderson confirmed the Koenigsegg move today.
We’re obviously very disappointed with the decision to pull out of the Saab purchase. Many have worked tirelessly over the past several months to create a sustainable plan for the future of Saab by selling the brand and its manufacturing interests to Koenigsegg Group AB. Given the sudden change in direction, we will take the next several days to assess the situation and will advise on the next steps next week.
—Fritz Henderson
GM and Koenigsegg had signed a stock purchase agreement regarding the sale of 100% of the shares of Saab Automobile AB in August. (Earlier post.) Conditions to close the sale included expected funding commitments with Swedish government support and guarantees, as well as transitional assistance from GM, as Saab becomes independent. In September, Koenigsegg signed a Memorandum of Understanding (MOU) with Beijing Automotive Industry Holdings Co. Ltd. (BAIC) to explore growth opportunities in the Chinese and international markets for the products of SAAB Automobile and BAIC. (Earlier post.)
GM is also currently working to sort out the reorganization and financing of Opel following its decision not to sell. (Earlier post.)
SAAB is synonymous with Swedish.
What options?
Posted by: arnold | 24 November 2009 at 04:46 PM
Oh no!
I always thought Saab plus Saturn/Opel would make a good high/low product combination. I really think with proper management this could be a good combination on both sides of the ocean. Even with Saturn dying off, I see no reason why GM could not sell Opels (badged as Saturns or Opels) and Saabs through the Saturn and Saab dealers in the US. I think it would be a good Euro alternative. I know a lot of current and future GM cars are based on Opel platforms but some people (like me) like their European cars as is, not Americanized.
It will be really sad if Saab closes down. They have made some really high quality cars. My family has a 15yo 9000 that still runs great.
Posted by: Peter9909 | 24 November 2009 at 06:40 PM
The European carmakers that sell in the US tend to emphasize brand identity & product differentiation from the competition (their own sense of elitism). Before Saab was bought by GM and still had Swedish owners, there was a certain brand identity you were buying. The generic corporate GM influence has definitely affected Saab...but as GM shifts its business model and starts focusing more on quality and innovation, perhaps keeping Saab will be a good thing. Right now they have stability & some careful innovation (albeit slow and limited). Going back to Swedish owners might mean uncertainty and too much out-of-the box risk taking.
Posted by: ejj | 24 November 2009 at 07:03 PM
I own one 2004 93 aero. Although engine and drive train are reliable. What Saab lacks are refinement, solid build, luxurious feel, and up to date technology and feel. I feel like the car is 5 years or more behind competitor at this price range. My 1991 Honda accord EX has no rattle and interior pieces don't fall apart. So what is Saab excuse for steering volume control not working, some interior panel came loose, sunroof motor need to be replace, leaking cooling fluid, etc..
Attorney
Moremony
Posted by: Account Deleted | 25 November 2009 at 12:20 PM