Mario So Funny

Saab’s new management: Saab CEO Jan Ake Jonsson and Spyker chief exec Victor Muller

By
Tim Pollard

27 January 2010 09:59

Saab has woken up this morning under new ownership after the deal to sell to Spyker was thrashed out last night in Detroit. Further details have emerged about the deal, which are now confirmed by Spyker. Highlights include:

• GM and Spyker have reached a binding agreement
• Deal to close on or before 15 February 2010
• Swedish government guarantees €400m European Investment Bank loan
• Spyker to buy all the ordinary shares in Saab Automobile AB for $74
• Paid in two instalments: $50m on February completion date, $24m on 15 July 2010
• GM to retain redeemable preferential shares worth $326m with guaranteed returns
• They bring less than 1% of voting rights in Saab capital
• Saab and GM will enter ancillary agreements to continue trading
• Spyker to buy all outstanding shares in Saab Great Britain

For further details on the financing, click ‘Next’ below to read the Spyker announcement in full. Warning: it’s full of jargon!

What will Saab launch under Spyker?

GM sold the technology rights of the pre-2003 Saab 9-3 and current 9-5 to BAIC in December 2009. But Spyker has bought access to all the existing IP rights, trademarks, facilities and other infrastructures of Saab Automobile including the new 9-5, which has now started production in Trollhattan.

So the newly independent Saab will sell the new 9-5 saloon, with the 9-5 estate due to be shown later this year; the new 9-4X comes to market this year, too (a Mexican-built crossover based on the Cadillac SRX); the next 9-3 is the next all-new product; followed by a potential 9-1, under the original independent business plan mooted last year.

Spyker must now go through the books to make sure it can afford to develop the all-new models. Trading agreements are in place to ensure supply of GM technology to cars like the 9-5, but there’s plenty of work to be done on the 9-3 and 9-1 programmes.

The new company today issued the latest financial results for Saab, revealing that sales plummeted to 39,903 cars and production slumped to just 20,791 vehicles last year. That’s a huge crash from the 94,751 sales and 89,086 production run of 2008 hardly surprising given the uncertainty over Saab’s future for much of last year.

Victor Muller, Spyker CEO speaks
 
Saab’s new boss today said: ‘We are very much looking forward to being part of the next chapter in Saab’s illustrious history. Saab is an iconic brand that we are honoured to shepherd. We are delighted to have secured the jobs and livelihoods of thousands of loyal Saab employees, suppliers and dealers and to have given reassurance to the 1.5 million Saab drivers and enthusiasts around the world. It was breathtaking to see so much support from the global Saab community over the last months which not only shows the strength of the brand but also helped us in our relentless determination to get the deal done.

‘Spyker Cars will provide Saab with the backing required to compete as a competitive global brand along with an entrepreneurial leadership team sensitive to the uniqueness, heritage and individuality of the Saab brand. I would like to extend my sincere gratitude to Vladimir Antonov for his formidable support during the past two years. His contribution has allowed Spyker to get to the point that this transaction was made possible. I also want to extend my gratitude to Messrs. Stancikas and Bondars as Members of the Supervisory Board. They have made very valuable contributions to our company during their respective terms.

‘Finally I would like to thank the Swedish government for its constant support for our efforts culminating in granting the Guarantee in favour of the European Investment Bank today for an EUR 400 Million loan to Saab which we hope to secure in the coming weeks.’

Jan Ake Jonsson, Saab CEO speaks

‘It has been a challenging 15 months for Saab but our global organisation has shown a fighting spirit that will serve us well going forward. The agreement with Spyker Cars has secured Saab’s future and will enable us to maximise the brand’s potential through an exciting new product line-up with a distinctly Saab character.

‘Today’s news is great for Saab’s customers, dealers, suppliers and employees around the globe. The level of passion and support shown to Saab over recent months has been remarkable and I would like to take this opportunity to thank all of those people who continued to believe that Saab deserved a future. Now we aim to get back to the execution of our business plan and with the continued support of our employees and business partners I am confident we will succeed.’