The following is a transcript from TTELA, the local newspaper in Trollhattan.
As you might expect, stories about Saab are filling the tops spots on their website right now.
This is one of them.
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Long-term and Swedish
Christian von Koenigsegg on intentions with the purchase of Saab
ÄNGELHOLM
A Long Term Swedish car company. This is the intention behind Koenigsegg's purchase of Saab. So says Christian von Koenigsegg to media today.
At the same time he points out that it is a financially strong consortium behind the deal and not just Koenigsegg.
- It became clear during the spring that Saab has great concern," said Christian von Koenigsegg, when TT today met him in the production and exhibition hall at the factory outside Ängelholm.
- Within our group and the network to which I belong, we started to think about the issue and felt that we could contribute to create a solution for Saab and a long-term Swedish car company," he continues.
He emphasizes that it is a financially strong consortium behind the proposed deal, not just the small sports car manufacturer.
- It is a misunderstanding. It is not the small car Koenigsegg taking over. We are a purchasing group," he says.
Christian von Koenigsegg does not want to tell how many millions Saab cost.
- I would not go into any details of the current situation, we are in the negotiation phase with GM and offers no comments on it.
That Saab, for several years, has been characterized by miljardförluster (I think that means big losses - SW) not stop the financiers behind Koenigsegg.
- We have gone through Saab in detail and seen what there is for the strengths and weaknesses and we believe that our entrepreneurial spirit and the skills we have in the automobile, and other sectors in our group, can help create a long-term and successful Saab. This is a process that will take time and require much patience and work.
Koenigsegg Group consists mainly of a group of entrepreneurs of a different nature. In addition to Christian von Koenigsegg himself included Mark Alan Bishop, Bård Eker and Augi K Fabela, who is the chairman.
Christian von Koenigsegg can not make any guarantees about jobs in the Saab will remain in Sweden.
- If we become owners of Saab, we shall do our utmost to create a powerful company that can live on the international market.
But stop the jobs left in Trollhättan?
- Our ambition is to build a Swedish car company with all that implies.
Does it mean that the jobs stay in Sweden?
- Yes, very much, "said Christian von Koenigsegg.
All the spotlights are on you ( and other investors/ partners)....
Everyone is hopeful and wishes a great sucsess with the Saab purchase!
Bring foto's of the new 9-5 with the correct delivery dates, thats what people are waiting for;
We can't reasonably expect them to announce any major plans until the deal has been finalized. So be patient, my friends.
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- We have gone over Saab in great detail and noted its strengths and weaknesses. We believe that with our entrepreneuring spirit and the know-how of the auto industry and other areas that we have in our group, we can contribute to the creation of a long-term successful Saab. But it's a process that will take a long time, and require much patience and effort.
How much does Saab cost?
- I can't go into any such details at present. We are in a negotiation phase with GM, and I have no comments on that at the moment.
Will GM remain as a part owner, like they did with Opel?
- I can't go into any such details yet.
What does this mean for the Saab employees?
- It means, if we do indeed become the owners of Saab further on, that we will do our utmost to create a long-term, powerful company that can survive in the international auto market.
Will the jobs remain in Sweden?
- Our ambition is to build a Swedish car company, with all that entails.
Does that mean that the jobs will remain in Sweden?
- To a large extent.
How will this takeover be noticable in the cars?
- I don't want to go into such details yet, but we will contribute our know-how where it is suitable.
How will the brands benefit from a takeover?
- Well, I'm sure that there are many possible synergies, but it's a bit too soon to go into that at present.
Will you move any of the manufacturing of the sports cars here to Trollhättan, where there are large facilities available?
- I don't foresee that. Our ambition is to continue here in Ängelholm, and we are very happy and content here.
A group led by Koeningsegg will certainly have the right ideas got the direction of the company.
That being said, not being a major auto manufacturer this brings Saab back to where it was in the late 80s, a small niche manufacturer lacking the sales volumes over which to spread R&D costs...
In order for this to work there will have to be STRONG partnerships with other auto manufacturers.
"By Jonathan Ford
LONDON, June 16 (Reuters) - The astonishing deal that the tiny supercar maker, Koenigsegg, has struck to buy Saab from General Motors has been hailed as a "David and Goliath" transaction between two Swedish carmakers. But is that really what it is?
Koenigsegg, an amusingly-named company which sells about 18 (very expensive) cars a year, may seem an endearingly dotty Swedish venture. It is after all the brainchild of a bald Swedish toff, builds unfeasibly powerful sports cars and operates from an old military airstrip near Stockholm where the well-heeled clientele fly in to eyeball the motors. But the people behind the Saab deal are neither dotty nor Swedish.
The new chairman of Koenigsegg is Augie Fabela, a heavy-duty U.S. financial investor who founded VimpelCom, Russia's largest mobile operator, in 1992 and then floated it on the New York Stock Exchange a few years later. Another backer is a San Diego-based investor, Mark Bishop. It is not clear exactly what Fabela's financial interest is in the venture but Bishop will have a 22 percent stake in Koenigsegg Group, which will in turn own 90 percent of Saab as well as the original Koenigsegg business.
Fabela is said to have become involved with Koenigsegg as the distributor of its cars in the United States. It is suggested that he may even own one himself. But these U.S. investors do not look like petrol-heads pursuing a dream to build the perfect Saab. One would imagine that Fabela has seen an opportunity to secure Saab's assets for a knockdown price from battered old GM. All the better to do such a deal through a friendly Swedish company rather than some scary alien financial operation. ..."
K-egg or New Saab nees to clarify the mysterious Mr. Bishop soon.
@ ctm Breakeven at 70,000 units means great numbers of people in Sweden will lose their jobs. This is counter to the Sweden loan guarantees so keep that seat belt on. And the GM ownership is gross - a clean break is what Saab needs with bridge agreements with GM.
And K-Segg hd a great opportunity to pump up the workers and management, to be the leader! He didn't do a good job to me. He hedged. He claimed investors but named no one.
Profit at 70K? Very hard to say anything about it as we dont have financial data.
We can only compare it to Saab's own word that 130K cars per year will make them profitable in coming years.
What would be needed to breakeven at 70K?
Some guesses:
-firing people, A LOT
-less money in investments
-less money in ads
-no more discount(selling at loss) sales in the USA
"The (real) deal should be ready in the third quarter" says ams.de. That is by the end of September.
Still. Now we "only" have a MoU (Memorandum of Understanding). Like Opel/Magna etc. The game is not 100% a done deal. But lets hope it works out just as planned by JÅJ and his crew.
I think this speaks against a combining of the two brands in a severe way as some has been concerned about.
I really like the talk, so let's see the walk!
Fabela was/is a big contributor to Republicans, including W. If this is the correct Mark Bishop (smoking gun!), and there is even a hint that New Saab is skewing to the luxury market for the rich, then the U.S. media is going to have a field day linking New Saab to the super-rich sharks who took down the economy.
Coupled with the widespread anger at GM, and an America where even the still rich are avoiding public displays of wealth (big surge in interior decorating because that stays out of sight), I cannot see how any positive Saab perceptions will survive to 2010 in the U.S. among Saab's core market segment.
CJ understood the dynamics of the U.S. market and consumer where Saab loyalty could rebuild Trollhattan's volume with less-luxurious models.
the San Diego-based Bishop as shareholder is a huge mistake. I really hope it is a different Bishop because the media scrutiny in the next few weeks will fix perceptions for a long time.
I've tried to be optimistic through al of this, but I won't even keep my 1999 9-3 much longer if any money is coming from the sub-prime/foreclosure crisis. Have lost enough from the indirect fallout. Saabs really are expensive to properly maintain once they get to a certain age.
see my new comment about Quick Loan on previous post on K-Egg Group. Thought it best to bury it there, using my newly sharpened pitchfork.
Maud is still skeptical about the K-egg Group funding, and somewhere I just read that the EIB requires six weeks advance application, so the July meeting deadline has passed. Next EIB meeting is September.
Someone better have some serious cash to get Trollhattan through September. That 90MIL left in mid-May from GM is not enough.
All of which is my opinion of course.
@ Daniel How are you "sure" Fabela will have the money when needed? Can't wait to hear more.