Our mates over at Auto Motor and Sport in Sweden have had their own Djup Strupe call in and uncover the fact that GT.se's mysterious German bank - who they stated was actually a front for GM to retain control of Saab if negotiations went south - is actually representing Magna.
For those who don't know, Magna is a Canadian owned company who manufacture parts, vehicle platforms and have an assembly plant in Austria that manufactures vehicles for other companies. The Magna Steyr plant currently manufactures the Saab 9-3 convertible.
Magna have been outed as a major player in negotiations for Opel in a partnership that would see them team up with GAZ from Russia. GM would retain a significant stake in Opel under their proposal.
This is the first indication I've had of them being an interested party when it comes to Saab.
Here's my Google trans of the AMS article:
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Magna bid on Saab Automobile
Pär Brandt - 2009-05-13 16:28
New data to Auto Motor & Sport argues that the automotive company Magna not only wants to buy Opel, but is also included in the auction at Saab Automobile. The German bank is representative of Magna International, not GM, which was previously claimed.
In the constant the serial "today's Saab-reputation", we now have something very special to contribute. A little bird has whispered, from a location with good transparency, that reputation was spread over the week's introduction is incorrect. It was argued then, from the newspaper GT, to the three secret bidders who reached the finals are the Chinese firm Geely, Fiat and a German bank.
Behind the German commercial banks - mentioned by GT - was General Motors who were "hiding" with the intent to control the bidding and in the worst case blocking Chinese Geely to buy Saab. But according to our new data, it is not GM trying to be discreet, but automotive company Magna International, who are based in Canada.
Magna also has a subsidiary in Austria, Magna Steyr with over 9000 employees, subcontractors, and they produce some car models including the Saab 9-3 convertible. In addition, Magna has around 30 small factories in Germany working as subcontractors to the automotive industry. Total Magna has 27,000 employees in Europe - no small player in the automotive industry, that is.
Magna International has already declared that it is interested in buying 50 percent of Opel and want to finance the deal with Russian carmaker Gaz. GM in the U.S. would retain a minority interest (and thus have a continuing influence) of approximately 30 percent. Unlike many others in the automotive industry, Magna International is in good financial condition and together with the Russian financier Oleg Deri Easter (which is half owner of the Gaz) funding would not be any problems.
Natural link between Saab and Opel
Magna's approach to Saab has not been known but if you want to buy Opel is close to his that also add to Saab Automobile. The two companies are already integrated in research and development, an example of which is the common sister projects Opel Insignia and the new Saab 9-5..
Although American GM drastically reduces its stake in Opel / Saab joint models continue to evolve and it becomes a bit like "business as usual", but with new principal owner. The shop can probably also get the thumbs up by American politicians who see Canadian Magna as a good owner and GM, for example, to forgive debt in billion class to Saab when they separated. In practice, GM's management, together with the U.S. Government, approve the Opel and Saab's new owners as "friendly" - otherwise there will be no business.
For both Saab and Opel's probably better to have the principal owner who can concentrate on a few brands, compared with being in the Fiat Group which has almost a dozen brands and several dozen models to be reconciled together.
Anyone who knows its history knows that the Magna for a number of years been mentioned as new acquisitions in the automotive industry discussed. Last was the Chrysler LLC, which became the Magna coryza on (which it perhaps is pleased today to have "missed"). Possibly, it has become a prestigesak for Magna to finally, after seven disappointments, to salvaging a great home business and become a more renowned players in the automotive industry.
Finally, there is another fact that speaks against Fiat affair: the German pride would never be able to swallow the fact that Opel would have to be "subordinate" to the Italian government with headquarters in Italy. Where is the Magna-Steyr from the neighboring country of Austria significantly easier to accept.
Yesss.....Fellow SU Enthusiasts......This is for the record. I'll be okay with them. They already assemble the convertible anyway; I'm just not sure how (if they can acquire SAAB) it would work out with OPEL. Would it be a plus or a minus? Anyway, I'm glad they are in the running.
The Auto World is watching......
Magna Steyr is incorporated in Austria as a subsidiary of Magna in Canada. Nice way to keep assembly separate from conflict in parts manufacturing. Remember that Opel came on the market much later than Saab - I still think Saab was Magna's first choice.
do not forget that the Canadian banks are the most solvent in the world.
so, we've gone from boldface type to duplicate entries?
am going to go kiss a maple leaf for luck!
Karen, we should make you a honourable Canadian citizen. :)
Not the solution today.
Better shape? - their biggest customers are dying and an affiliate just tubed Pimlico Racetrack.
Sure, they've got their problems, too and everyone is vulnerable in todays automotive business.
Oleg Deripaska's your classic Russian Oligarch - early 40s "self-made billionaire" in a country with serious organised crime problems. Not, of course, that I'm suggesting he may be implicated in any way...
http://en.wikipedia.org/wiki/Oleg_Deripaska
Deripaska's central to a political bribery scandal here last year involving Peter Mandelson (frequent central figure of this kind of scandal) and George Osborne - so both sides of our parliament.
http://en.wikipedia.org/wiki/Peter_Mandelson#Deripaska_affair
http://en.wikipedia.org/wiki/George_Osborne#The_Deripaska_scandal
Rather more relevant, though, is that GAZ is the recent ex-owner of soon-to-be-ex-van maker LDV, which is in the throes of collapsing or having tax money shoved at it to make it a viable sale.
http://en.wikipedia.org/wiki/LDV_Group_Limited
http://news.bbc.co.uk/1/hi/business/8034667.stm
Skookum, EH ya hosers !!! :-D
PS: David B: Swade already is 1/2 Canuck.
And if Opel goes into SAAB territory, then let them. By now the Trollhättan plant is efficient.
GM was always biased towards Opel as GM owns Opel since 1929, and SAAB came too late to the party. But with Magna, SAAB should be able to build premium platforms, which can be used by Opel in a downgraded version.
I didn't think my speculation about Magna-Styer would cause such interest.
Seems to be a lot of Canadian support for this. Go Canada!
Maybe that Canadian flag stuck on the back of my 9-5 vector sport wagon is a good omen (despite the fact that although being Canadian myself, I live in the UK).
I think I'll get my sister in law to send over some more Canadian flag stickers for the other 3 Saabs in the family.
The more I think about the Magna-Styer group the better the fit with Saab. Saab is always going to be a small volume manufacturer, because that's the appeal to Saab owners. If you make too many then the brand image is destroyed.
For example the Ford XR3 was a great success at first. Bought mainly for middle class housewives, then the boy racers started buying them. After a few years the image was gone. The same is now happening with the BMW Mini. I bought my wife a new one in 2006. We just got rid of it (and now she drives a 9-3 convertible) in Jan 09 because the kids are buying them and putting on all the bling, destroying the image.
People buy Saabs for various reasons; there fast, safe, discreet and most of all different.
GM did the best they could in the twenty years of their ownership. They tried to cut costs and expend the market. Each time a new model came out, traditionalists didn't like them at first. Saab is caught between two stools, the owners who don't like change and the need to expand market share.
This is why I believe that Magna-Styer is the best option. They can afford to make small numbers of Saab's without significant cost as they make bits and cars for other manufacturers. The risk is spread.
I'm keeping my fingers crossed.
Reduce expenses by 20% by reducing quality by 80%.
Also, Magna will not bring any synergies in sales and aftermarket, except that they maybe get better access to the Russian market through mr Deripaska's money and contacts ?
Why do I say this:
None of the other suppliers will work with Magna because they would be concerned about the theft of ideas. Magna commonly does this and their plant in Austria is the biggest culprit since Magna gets to see future product/technology from other OEMs and supplier at that plant. This means that SAAB will lose out on getting competitive technology as Magna would have to develop everything on their own.
Magna will be unable to work with other OEM's because guess what, they are now the competition. Do you think any other OEM wants to share their future product plans with Magna who just happens to be a competitor, don't even think that is ever going to happen. I would bet that just because of this news, we will see some OEMs begin to pull away from Magna and for good reason.
So what is Magna going to do? Sell parts to their car division of Opel and SAAB (Thus the vertical integration). This would be a significant reduction in their overall volume and an explosion of cost as they would be unable to defer development costs like other OEMs do. The end result is that their financial position will be extremely weak. A tie up with Opel and SAAB will spell the end for Magna. It is not like they are doing that great of business as it is. They just are doing a slight bit better then the rest which is not really saying much.
Do I want SAAB wrapped up in that potential mess? NO!
I am less than filled with glee, largely because Oleg Deripaska is a bit of a known figure in the UK, after some recent news stories.
We're not exactly warm over here to young Russian self-made billionaires, after many of their dealings over the last few years. Smolensky's murder of TVR is just one.
Deripaska was central to a political scandal last summer, with a couple of senior politicians (one from each side) allegedly accepting Very Generous Hospitality (nudge, wink) from him on his yacht - have a look at the Wikipedia pages for Peter Mandelson (a regular in this kind of allegation) and George Osborne (likely to be our finance minister after next year's election) for details.
Then there's the recent ex-ownership by GAZ of the mortal remains of Leyland trucks/vans, LDV. The soon to be ex-LDV, unless the government adding cash to the corpse persuades somebody (anybody) to buy what little is left of them.
LDV vans have been struggling for years with an outdated product with its roots based in the ancient British Leyland Sherpa van.
The struggled on after the parent company DAF went bust by making customised vans to order. A niche product back then, but now Ford et al are all doing the same for less money. The LDV plant at Bromford Lane in Birmingham is ancient and not suitable for modern manufacturing techniques, just as the now closed Peugoet factory at Righton in Coventry.
I think the Russians bought a couple of turkeys with TVR and LDV.
Hardly, unless you get suckered into the whole "Oooh, it hasn't got ABS/TC/EBA/47 airbags, so it must be unsafe!" marketing rubbish. They were very solidly built, very "raw", and very very good at what they did. Sure, they may not have been as polished and utterly day-in-day-out maintenance free as some bland appliance like a Toyota, but they weren't exactly aiming for the same market.
"LDV vans have been struggling for years with an outdated product with its roots based in the ancient British Leyland Sherpa van."
Umm, no, they killed that a few years back. The Maxus is a modern and perfectly good van, winner of quite a few "Van of the Year" and similar awards.
Strange thing is, my local dealer (in UK) ASSURES me that a Swedish consortium are well down the route with Saab... I REALLY hope he's right!
No, obviously many of the people at Saab will have a say on brand management. The same with Koenigsegg, there will still be Saab people in management, they will not replace all of them...
Surely even at GM there Saab people have 'had a say' , but that was no guarantee to preserve the traditional Saab qualities. As Magna has been operating mainly in the manufacturing business (not car marketing or branding), there is no guarantee either that Saab would be in a better position. (Hopefully so, but I wouldn't take it for granted).
Oh, and since we hear that ten Koenigsegg engineers easily correspond a few hundreds of Saab engineers, managing one more brand must be a piece of cake for them...
They represent everything that is bad about British manufacturing and commerce. Just like Rover.
Oh, well, if having the instruments in the centre of a basically symmetrical dash makes a vehicle "rubbish" alone, then there's a whole BUNCH of cars - Toyota Yaris, Renault Espace included - which are clearly rubbish...
Having them own Saab would be the best possible outcome given the circumstances.
Financing through the Russian oligarchy is a bit concerning though.