
“General Motors confirmed Tuesday that the proposed sale of its Saab subsidiary to Koenigsegg Group AB was terminated at the discretion of the buyer.”
(via GM’s media website)
Sound familiar? It should. GM made a near identical statement only six weeks ago, when the sale of the Saturn brand to Penske also died at the last minute.
Of the four brands that were initially put up for sale under the flag of viability, only the smallest of that group (HUMMER) now has a chance to close. Saturn and Saab have both had their suitors back out, while GM suffered seller’s remorse over Opel, and has terminated the pending deal with the Magna Group earlier this month.
GM President and CEO offered this statement: “We’re obviously very disappointed with the decision (of Koenigsegg) to pull out of the ***insert car brand here*** 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.”
Unlike with Saturn, where GM announced that brand’s wind down immediately, they offered no such definitive guidance on the future of Saab saying, “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.”
GM’s board next convenes on December 1st, where the fate of Saab will likely be decided. GM could decide to retain Saab, as they did Opel, however GM has been aggressively selling-off and winding down operations in anticipation of the closure of this deal to Koenigsegg…and Saab is not considered vital to GM’s ongoing operations internationally.
While no official reason on the deal’s failure, other than timing, was given by Koenigsegg, it is a good bet that the decision by the EIB to give out the EUR400 million funding in tranches, rather than in the form of a ‘oversized lottery winner’ check in advance of the deal (as Koenigsegg had requested) had a little something to do with it.
Wild rumor of the Day: China to buy GM?
Such speculation used to just be the fodder for fringe websites and conspiracy theorists, however the notion is starting to penetrate into the mainstream media of late. ‘Industry Experts’ are suggesting a Chinese-run GM could become a reality. Well, David Cole, chairman of CAR (Center for Automotive Research) is suggesting it.
Sidenote: CAR bills itself as a Michigan think tank…but as far as I can tell, it is essentially just a 3rd party shell made up of ‘Big auto’ and its affiliates, and mostly funded by the US taxpayer. (Dave Cole is also the son of former GM President Ed Cole…coincidence I am sure)
“I can tell you right now the Chinese are shopping heavily in the U.S. auto sector. The Chinese have a lot of our money and they’re looking to invest it.” Mr. Cole said. He adds that this kind of deal is not likely to happen in the short term, but that GM’s planned IPO may give the Chinese the opportunity to start the process, as our own government is eager to rid themselves of their 61% stake in the domestic automaker.
Bob Schulz, an auto analyst at Standard & Poor’s, does not shoot that theory completely out of the water, but does wound it by saying “Assuming there’s no government restrictions on something like that, anything is possible.”
Personally, if I had a nickel for every time I heard that a Chinese company was about to take over something in the auto business, GM would probably be receiving my payment for the Volt in 5 cent pieces.
/Happy Thanksgiving to the extended GM-Volt family