You make the news - K-Saab release edition

Sleep well Swade, we will keep you posted.

Oh admit it, you're not getting any sleep with all this exciting speculation flying about. :)

Meanwhile, Saab Newsroom has at least acknowledged the speculation:
http://newsroom.saab-web.com/news/news/anewinvestorforsaab.5.43abc3041211cc8612f80001360.html

Swade, sleeping or not, I for one am thankful you're here. While breaking news has importance, it's the analysis and insight that you bring that's more important. Keep on keepin' on.

Happy Zs for you...

while SWade is sleeping, or trying to, it is 1:45 p.m. in NYC, and absolutely NO new news except for the doomsayers on the David/Goliath improbability.

Crikey, Bloomberg just announced Ralph Nader will offer his thoughts on the global auto industry at 2:30 p.m. A sign of desperation that they cannot get a fresh voice.

GM would announce from Detroit in next 3-4 hours to hit the evening news cycle if it's going to be today.

Otherwise, we all need a Saaby weekend!

Swade - When are you gone quite your day job and just live on this site? Soon the sponsor-money and donations will boost your income. BTW - is it not time for you to ask us for some money? I am willing to send 100 SEK to start with.

http://img189.imageshack.us/img189/4582/jamesaerox.jpg Thought i'd share this one for a little more inspiration :D

Today, Saab is the laughingstock of the auto industry with the kit car maker K-segg. NO way Sweden will agree to support small company, Saab needs Pros!.

None, I am sure you are right. Renco will be sure to pick up the pieces!

Enjoy!

Chris

Forgot to add ;P

Swade posted the link to this Bloomberg news article in his previous postT (the title is: "Koenigsegg Seeks ‘Damaged’ Saab Brand Fix With Swedish Heritage" By Benedikt Kammel and Marianne Stigset), BUT it keeps getting updated, and is reported from Berlin. Only source that is digging into 'Eker behind K-egg deal' and what Christian von Koenigsegg has to offer: "“He has the ability to create the language, the spirit for a new Saab,” said Ingeman Arbnor, author of “World-Class Entrepreneurship - Koenigsegg - Entrepreneurship As an Art Form” (Liber, Malmoe, 2006), said of Christian von Koenigsegg. “He is the one to bring soul back to the brand.”..."

I'd like to thank Kammel and Stigset for driving the REAL story, and look forward to more from them, and hope they get Bloomberg Business News on U.S. cable to cover their insights into Eker and Koenigsegg this weekend.

and, None, as to your earlier question as to why K-egg doesn't build more cars? The K-egg Quantum solar electric coupe concept looks like a production model ready to be launched in 18 months, NOT a handmade luxury sports car. Maybe a Saabisegg motor cycle and lawnmower and baby carriage can hit the markets even sooner. I'd buy a Saabisegg lawnmower!

Dear Koenigsegg Brothers,

Although technically unofficial, we here at our Saab dealership and the surrounding Saab dealers that we know, are so excited about this venture and future possibilities, it's impossible for me to express in the English language our sincere delight. Our dealership is the second oldest continuously owned exclusive Saab dealership in the United States. We were approved for dealership operations from Saab Motors on March 23, 1961. We can and have repaired every Saab ever imported into the States. I have raced, crashed, sold, repaired and lived by Saab, with Saab as a part of my entire life since birth. We currently are a US top 10 in Certified Saab Sales and meet or exceed our new Sales objectives monthly. It is imperative you know the exclusive Dealers in the United States have hung on waiting for this type of possible dream solution. We, the exclusive dealers of the States, are so committed to Saab, its engineering, safety and potential, profit and loss seems to be second over the love of the brand. I wanted to drop a small note of thanks for returning Saab to the Swedish aura it belongs in. You truly have "possibly" purchased the largest uncut gem in the industry. Saabs potential in our opinion is endless.
So we salute you and very much look forward in assisting the resurgence of our brand, the Saab brand. We ask for you to care for us as we have cared for the brand for so long and so lovingly. We pledge to stand strong, as we have, and look bright eyed toward the future of Saab, now possibly resting back in Swedish hands, built by Swedish people and engineered by the standards we know will sustain this brand from our Swedish aviation heritage.
If there is anything my small group of dedicated, long term Saab enthusiasts can do to assist in any fashion, do not hesitate to phone or email us. We look forward to the official announcement and our first official greeting. One of the finest days of my life, aside from the birth of my twin boys, will be signing the new dealer agreement with the new Koenigsegg Saab.

Sincerely,


Darryl F. Carl
President / Owner / Service Manager
New Salem Saab
(518-862-2795 Office 518-862-2799 Fax 518-528-4083 Cell)
www.newsalemsaab.com

Saab Since 1961 - Our 48th year with Saab!
Servicing your automotive needs for 62 years now.
WE TAKE SAAB SERVICE SERIOUSLY!

Where is egg'n'grits?

If anyone doubts K-Saab could work, just take a look at what Fisker and others are attempting to do.

http://www.forbes.com/forbes/2009/0608/070-automakers-fisker-karmas-the-next-detroit.html

This is similar to a new SAAB business model where they don't need to waste time/energy/manpower designing and building everything themselves. SAAB can buy off the shelf for all but the most important parts that make a SAAB a SAAB. Fisker mentions stuff like not wanting to design and build a door-handle.

With the footprint of what exists of SAAB and with the energy, spirit and vision of Koenigsegg, K-Saab is much further along building "The Next Detroit" than any company mentioned by Forbes.

It's not like the new SAAB needs to start pushing millions of units a year with 10's of thousands of dealers to be successful. It's a small, niche operation with a lot of outsourcing. In that type of situation, besides money, vision, spirit and soul become very important and it seems to be the guys behind this deal have it.

Sure, there are probably better dream scenarios out there but none sat down at the table with GM. Would you have preferred a Chinese consortium or FIAT who seemed to have a similar plan as GM - lots of brands and volume, volume, volume?

This was the best opportunity for SAAB in 2009 and I can't wait to purchase my new 9-5 in a couple of years.

@Darryl Carl at New Salem Saab: THANK YOU! for every word.

on a personal note, looks like I may have to move again by 2010, and stay inside New York State for complicated reasons. I have two requirements: proximity to Trader Joe's for food, and a dedicated Saab dealer for service. While TJ is not yet near Albany area, I have the Albany/Schenectady/Troy area on my short list because of the housing affordability. I really want to be able to afford one more Saab, with XWD, (and a HATCH!).

It is very reassuring to know you are there after being so dependent on Reinertsen Saab in Denville, NJ (1986-2006) (a Saab dealer since 1970, currently proud to say: "We've been in Denville for over 50 years. We're going to be here for the next 50!", and, more recently, Pioneer Valley Saab in South Deerfield, MA, also one of the oldest independent Saab (and Volvo) dealers in the U.S.

Good god!! I reckon there must be some BMW or Audi owners here who dont want Saab to succeed buy some of the negative talk going on. I guess maybe we should just close Saab down if those of you with a negative vibe are suggesting. Why dont you just go and buy a boring Audi or a BMW!!!!!

Although we may not all agree as to who should own Saab should we not be thankful that there are people out there with money who are willing to take on our little car company!!??

*STANDS DOWN FROM SOAPBOX*

Darryl Carl summed up how I personally feel very nicely.

Forget the Naysayers. Koenigsegg are pros. They build some of the finest cars in the world. They have huge dreams, and have convinced enough people they are capable of them that they've been handed the keys. I for one, put more trust and faith into the dreamers, the ambitious, and the ones willing to take on some risk. These guys have balls and they're going to do very, very well. Experience in absolutely no way shape or form says you'll do a great job.. many would say that the current president could be an example of that. GM has a ton of experience, they even created a niche brand (saturn) and then somehow destroyed it. Experience is nothing. Dreams and the ambition and financial backing to fulfill those dreams is everything :)

I hope my sarcasm came across as I am all for this Koenigsegg Saab collaboration. Should be an interesting, challenging time. I can already see the impact this has had on the general car forums. Instead of Saabs suck etc we are getting something resembling some new found lust for the brand. There is probably been more positive press for this in the last day than SAAB has had in 10 years.

Chris

From Dagbladet 12.6, 21.30-Google teans

Norwegian investors are serious. General Motors controlled for A4, says Norwegian entrepreneur.

Read how they will change the Saab.
FREDRIKSTAD (Chennai): - There have been some poisonous comments in Swedish media. I want to make one thing quite clear, we should not buy the Saab only to chopper up (sell bits and pieces, ed note), says founder and co-owner of the car manufacturer Koenigsegg, Bård Ekere, to Dagbladet.
International attention
Thursday night could SVT reveal that Koenigsegg, Ekere which owns 49 percent, with a number of Norwegian investors in the back, will move up as needed to take over kriserammede Saab stable and the 52-year-old Swedish pride is back.

Buyers will have signed a letter of intent with the U.S. owners General Motors (GM).
We believe it is possible and that we have several good solutions to take with us into the Saab, "says Ekere.

While the Secretary has spent his days on the phone to explain the international media as the New York Times and Bloomberg that Ekere not in the office, he takes the time to meet Dagbladet outside their house in Fredrikstad.

Next week
With the trademark and production, including in Trollhättan in Sweden, following a debt of 10.5 billion and 3400 employees. Negotiating an acquisition is now fully in Zurich.

- There have been many processes at once to get to purchase and it can still emerge reefs in the sea, "says Ekere, which does not itself negative, to Saab's own statement that a deal may already be in place next week.

Despite the financial crisis also allows them to feel in Scandinavia "there are many investors who want to be with" to finance the acquisition, says Ekere.

- GM was A4
- But the amount of money and who are with us I will not say me, "says Ekere, who has been heavily into the design since the last series Koenigsegg, CCX.

- What is the most important and Koenigsegg takes you more input as owners?

- Culture and technology. Saab must be more innovative, not given an A4 template, which is some what General Motors did. And Saab's culture must be stronger, with the dealer, customers and the Trollhättan, that we and investors like to be a catalyst for, say car.

- Breakthrough technology
While Saab is not always linked to the "speed and power» Koenigsegg is the world's fastest-cars, with unique technology and design.

- I am sure we have some good solutions for Nissan, with groundbreaking technology. And we do not take no for an answer when a new idea comes up.

- Is the investment in fuel cells and electric cars a possible scenario?

- Yes. No matter what part of the transport industry you work in, you have to think about the environment.

LabourStart
Ekere stressed that the agreements are not in place yet and that they are dependent on goodwill from all levels.

- We have had very good vid of sails since we started, but we may soon on a new level: When must the guys on the floor would be to invest. It keeps that a few will not, that the plans will go wrong, "says Ekere.

- Would you come to where you are now if the trade union movement was clearly negative?

- No, we would not like, but I want to say anything that could harm the negotiations now. Trade union movement in the Saab is important and will avoid any major dismissals. At the same time we live in a world where it happens.

- Will all the 3400 employees keep the job?

- It is not the intention to terminate many, but this I can not say more now.

Swedish mother
The rationale for the acquisition is not only tempting. Today the leader and he owns several small companies.

- I notice there is a huge scary, with such a large industrial company, admits Fredrikstad-man.

- This is the largest ship, some of us have ever been in, he reveals.

Communication with cutie brother will probably go smoothly, even Ekere is half Swedish.

- My mother was born in Arlanda, Sweden and Swedish so I am well familiar with, "says Ekere.

Secret investors
Ekere will not comment on who the investors will buy the Saab is.

- I can not say. But I've been involved with the speculation in the newspapers and it has been fun, there has appeared a lot of things, "says Ekere.

Dagbladet has in the course of the day contacted several well-known people and businesses to ask if they have plans to invest in Saab, but without result.

Norwegian paper Dagbladet have managed to get an interview with the elusive Bård Eker (link under my name). He doesn't consider the purchase a done deal yet, but is fairly optimistic:

- There have been many simultaneous processes in trying to make this purchase happen, and we may still hit new snags, says Eker, who doesn't reject Saab's own claim that a deal could be in place as soon as next week.

Eker has a few interesting things to say about his plans for Saab's future. When asked what he and Koenigsegg can bring to Saab, he says:

- Culture and technology. Saab needs to become more innovative, and not just handled a standard template, which is sort of what General Motors did. And the Saab culture needs to grow stronger, at the vendors, at the customers, and in Trollhättan. We and our investors would like to be a catalyst for that, says the car enthusiast.

There is more worthwhile stuff in the interview, so those who don't read Norwegian are advised to get it translated!

Some punk at Reuters Blogs (huh?) is trying to be funny and it's not working out:

http://blogs.reuters.com/commentaries/2009/06/12/saabs-phenix-moment/

Could not help but leave my comment.

Norwegian paper Dagbladet have managed to get an interview with the elusive Bård Eker. He doesn't consider the purchase a done deal yet, but is fairly optimistic:

- There have been many simultaneous processes in trying to make this purchase happen, and we may still hit new snags, says Eker, who doesn't reject Saab's own claim that a deal could be in place as soon as next week.

Eker has a few interesting things to say about his plans for Saab's future. When asked what he and Koenigsegg can bring to Saab, he says:

- Culture and technology. Saab needs to become more innovative, and not just handled a standard template, which is sort of what General Motors did. And the Saab culture needs to grow stronger, at the vendors, at the customers, and in Trollhättan. We and our investors would like to be a catalyst for that, says the car enthusiast.

There is much more worthwhile stuff in the interview, so those who don't read Norwegian are advised to get it translated!

Ooops, messed up my code! Here. :)

Dont know if this has already been covered somewhere, but the Norwegian carshow *Broom* has written some words on the K-segg story...

If you're interested get it translated. Among other things, they mention that K-seggs plans for Saab include the "sportscarfeeling" being integrated into Saab.

Wohoo!

http://www.tv2underholdning.no/broom/article2716948.ece

My 9-5 has the "sportscarfeeling" but the door handles are lousy even after they were all replaced under warranty. Maybe K can help them to get better door handles.

K-segg have definitely done something right in their past. The fact is, 95% of these start-up sports car manufacturers fail very quickly. K-segg clearly hasn't, they've been doing well.

I don't know how well their experience will apply to Saab's business, which is very different. That said, I hope it applies well, and having K-segg as the owner for Saab is really a dream come true.

-Rogan

Thanks Kroum for the googletrans, and Börjesson. I could not even get the Norwegian language version to open. Interesting that Eker makes the point that his mother is Swedish. Eker seems very sober about the prospect of negative cash flow for at least two years. His investors have to be true believers that the EU and NA markets can respond to reborn Saab.

after 5pm in NYC, 4pm in Detroit, and no formal announcement. I think we will have to wait until next week.

ELBOBO makes the point: the perception of Saab is regaining it's lustre. like Saturn did with Penske, and Hummer most definitely did NOT with a heavy equipment mfr in China's boondocks. In the U.S. media, Chrysler is being given a better chance of success just because of Fiat's 'design flair'.

just hope the volume 9-3 (and/or 9-1) does not get forgotten. Trollhattan needs a volume model to cover the overhead and compete with Subaru in the U.S. Saab did it with the 900, they can do it again. if the USD slowly weakens against the Euro over next two years, THAT will be a big hurdle for ALL EU imports.

Ignore Reuters. Everyone else does - they are useful for basics, not insight.

My take on KoenigSaab.

Zippy and Me, this is what I wrote at the Reuters Blog (still awaiting "moderation"):

Pretty poor commentary, Jon. First of all, Koenigsegg is the front for a consortium with solid financial backing, as already reported in the Swedish press. And who told you the Swedish taxpayers stand to lose a dime in the Koenigsegg/Saab deal? Or are you just assuming?

Because the Swedish government has rejected any calls for financing so far, apart from loan-guarantees for an EIB loan. Which Swedish media are reporting they may not even take.

Lastly, your attempt at being ironic and poking fun at the founders of AGCO (i.e. Merbanco) is unsuccessful - Google and Sec.gov are great websites for doing some research on “mystery” entities before writing.

Everyone has been debating the pro/cons for SAAB, but K-segg is going to benefit greatly out of this purchase. They're going to get access to SAAB's technology, engineering and manufacturing. It will give the K-segg brand opportunities to expand its range at a lower cost, resulting in more sales with higher profit margins. So, while it may take a couple of years, this arrangement will generate two new/improved income streams for K-segg. The risk is much less than it first appears.

Mac

Does anyone else look at that 900 Aero/T16/SPG at the very top of this page and drool coz I sure as hell do?! I kinda get the feeling that quirky is going to make a comeback under Koenigsegg. :)

OFF TOPIC - OFF TOPIC
As Koenigsegg do not have no Diesel expertise, maybe SAAB could give PSA a phone call, and ask if they have a couple spare of those.

http://carscoop.blogspot.com/2009/06/citroen-unveils-new-240hp-30-hdi-v6.html

BTW: I hope the Lion defeats the rings this weekend in LeMans.
:))

I can't see anyone else mentioning this yet, so here goes:

Bård Eker has confirmed the buy (in norwegian):

http://e24.no/boers-og-finans/article3120271.ece

http://www.dagbladet.no/2009/06/12/nyheter/saab/utenriks/finanskrisen/bilindustrien/6695934/

Exciting times, exciting times!

Canadian wrinkle?

- on Tuesday, report is that the 51 Saturn dealerships in Canada may NOT be included in Penske deal - the 350 remaining Saturn dealers in U.S. are getting franchise letters this week, but Penske is still reviewing the opportunity for Canada.. The Vancouver Sun quoted Gus Revenberg

"... owner of Saturn Saab of Windsor, said his decision does not reflect a lack of confidence in Roger Penske as Saturn's new owner. However, he said he was told by GM that Penske is interested in maintaining Canadian dealers only if he can find a small vehicle for the Canadian market.

"I'm not sure what they're going to sell, and Windsor's a little touchy because of the automotive industry and the influence that the GM, Ford and Chrysler workers have on the buying swing of the public here," said Revenberg. "The import penetration in Windsor is low, only about 22 per cent, and in most parts of Canada, it's around 50 per cent. ..."

So, does anyone know if Mr. Revenberg is hanging in with his Saab dealership in Windsor, Ontario?

This is like 3-D chess...

To those who are unsure about Saab's future under Koenigsegg: I have just had a look what local "webpapers" say about K-segg's deal and found a title (translated):" Another Chinese company wants to buy Volvo". I went through the article and...Beijing is the fifth Chinese company interested in Volvo There was no one non-chinese company mentioned!!!. While we might be a little affraid of K-segg's financial abilities or understanding how to manage a big factory, Volvo fans are not affraid at all- they must have lost their hope by now. If it's all true there is "no future" to this Swedish brand that used to be (before it became Ford) a car with a "soul" (I think of 700/900 series). For sure the future of Saab is much brighter.

Saab of Cincinnati just closed a store.

I'm interested in knowing how Mr. Eker plans to make Saab profitable - how does a team with 20 cars a year make money in the mass market?

Even the bad journalists at the Wall Street Journal pillory this match.

FOCUS: Koenigsegg Seems Unlikely Bed Fellow For GM's Saab
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By Jonathan Buck
Of DOW JONES NEWSWIRES
A restructuring of Saab Automobile AB could involve significant downsizing if it is acquired by Swedish luxury sportscar maker Koenigsegg Automotive AB, analysts say.

Koenigsegg's lack of scale and experience in running and possibly restructuring an automaker with a global presence could prove to be a major obstacle for a viable long-term future, they say.

General Motors Corp. (GMGMQ) has been trying for months to find a buyer for its Swedish Saab unit, and people familiar with the situation Thursday said a deal with Koenigsegg could be reached as early as Friday.

A spokeswoman for Saab was less certain. "I can't comment on whether there's a preferred bidder at this stage, despite the speculation," said Saab's Gunilla Gustavs Friday. "We're still in talks and when we've narrowed it down to one, we'll announce who that is. We're hopeful that the deal will be concluded by early summer."

A spokesperson for Koenigsegg couldn't be reached.

GM has said its goal is to have a deal with one of three bidders by the end of June. Along with Koenigsegg, the final candidates are reportedly Renco Group Inc., a private holding company, and Merbanco Inc., a Wyoming-based private investment group. GM in February sought protection from creditors for Saab in an effort to sell or spin off the unit.

But analysts suggest that, as a Swedish company, Koenigsegg is the preferred option of the Swedish government for political reasons.

The Swedish government said Thursday it authorized its National Debt Office to start formal discussions about the state guaranteeing a EUR500 million ($700 million) loan that Saab has sought from the European Investment Bank.

A government spokesman declined to comment on the sale process.

With the industry suffering from significant overcapacities in what has proved to be its most dramatic crisis since the World War II, analysts remain puzzled over Koenigsegg's plan given that Saab's rivals enjoy much larger economies of scale and are backed by relatively cash-strong parent companies. Apart from their Swedish heritage, Koenigsegg and Saab appear to be unlikely bed fellows.

Koenigsegg Automotive was founded in 1994 by Christian von Koenigsegg, a 22-year-old auto enthusiast, and delivered its first vehicle, a Koenigsegg CC 8S, to a customer at the Geneva Motor Show in 2002, according to its Web site. Christian von Koenigsegg, now in his late thirties, remains as chief executive.

Koenigsegg employs just 45 full-time workers, including seven engineers, four research and development personnel, five pre-assembly workers, three engine-assembly staff and 14 final assembly workers, manufacturing just a handful of cars a year. Its headquarters near the southern city of Angelholm are a cluster of buildings formerly occupied by the Swedish Air Force, and where a runway doubles as a landing pad for well-heeled customers and a test track for the super-fast cars.

It boasted last year that the Koenigsegg CCX accelerated from zero to 300 kilometers per hour in 29 seconds. Earlier this year it unveiled the Quant, a four-seater electric car developed for a customer.

The closely-held company's assembly and manufacturing are labor intensive, which it cites for the high price of its vehicles. It doesn't publish a price list, but its cars cost hundreds of thousands of dollars.

Saab last year sold fewer than 94,000 cars, down from about 125,000 vehicles in 2007. Its best-ever year was in 2006, when it sold 133,000 cars, making it a tiny player in the global auto industry. Saab was created in 1937 with the purpose of making airplanes for the Swedish Air Force, but soon turned to making cars. GM bought a 50% stake in 1990 and acquired the rest in 2000.

GM itself filed for protection from its creditors earlier this month.