Two sources have come out in the last few hours with stories about Merbanco contacting GM. Both Expressen and Aftonbladet have claimed sources informing them about Merbanco being back in the game.
Contact between Merbanco and GM, if it has indeed happened, shouldn't come as a surprise. Allow me to call to your attention once again what Christopher Johnston had to say to Saabs United a few days ago, when the Koengisegg deal first fell through:
We are quite sad to hear the news. We remain fans of the brand and team at Saab. Under the right circumstances, would be pleased to look at stepping in and applying our experience to help.
So they were interested. The fact that they may have made a call shouldn't be too surprising.
The Expressen article is full of facts from the interview I did with "CJ" earlier this year and re-published the other day. They claim to have a source and I haven't checked with them about that, but due to past experience (and the substantive amount of quotation from the interview) I wouldn't bet my house on it.
I've checked with Robert Collin at Aftonbladet and he assures me his source is well placed.
So if Merbanco are in - all well and good. As you know, if there are any substantive developments, I'll get them to you when I can.
you are doing a fantastic job with your reports. A lot of reading is going on at the moment. Thank you.
http://www.dn.se/ekonomi/fornyat-intresse-for-saab-1.1002385
Based on the splendid info you, Swade, is providing us here at SU, I have to say that Merbanco seems to be a very humble, wise and down to (in) earth (soil) company.
Lets hope that, if indeed they still are interested, they have the funds makeing them less dependent on EIB loans.
My God, this sure is a rollercoaster!
I hope, though, I hope.
And if Collin has a good source it's not again us who started the roumors. And that would be good.
Swade gets a quote from Merbanco "[we] Would be pleased to look at stepping in and applying our experience to help", and magazines turn that in to a news article and claim that the information comes from "unnamed inside sources".
"What should I as saabist buy instead?
A Subaru, maybe? A bit odd and wayward, with high quality and good winter properties. Or why not new Honda Accord? Körglad, with high quality. Is not it too safe and boring for the Saab owner is the first Volvo a wise option. Then there are also more models to choose from."
To read the whole thing go here: http://www.alltommotor.se/artiklar/nyheter/fragor-och-svar-vid-en-nedlaggning-av-saab-1.18257
They have the engines, the platforms, etc....
They might also want to keep some aspects of K-Seggs plan & team included. The halo can help with a lot of free publicity which might translate into moving units. Even after the last few days, Koenigsegg is still a name that still runs with Zonda, Mclaren and Bugatti and that means serious traction in auto world.
Are they back in? Who knows at the moment. At worst, I'd guess that they are watching closely. At best - they're in the room right now.
According to D&B (Dun & Bradstreet), Merbanco is a merchant banking company estimated to have 3 (three!) employees and makes US$130.000 a year. 130.000!? That's nowhere near what is needed to take over Saab.
I don't get this Merbanco thing at all.
They are about the only ones with any money left...
As I posted weeks ago "Koenigsegg you better have hundreds of millions (in cash)..."
Swade mate, you are doing an amazing job in tough times.
I can't help thinking that now will see Fiat Group, SPA Torino, finally get Saab - or at a push, a German group...
I am finding all this very depressing- and I know I am not alone, keep fighting everyone . Saab is part of our lives and the thought of its actual demise fills me with dread. It would be worse than the dog dying.
The most capable buyer SHOULD HAVE BEEN allowed to go forward. It's too late now because:
1. Koenigsegg is out obviously,
2. Merbanco is too small,
3. Fiat has settled with Chrysler,
4. Chinese are tech-rippers at best,
5. GM, as we all now, is not capable to manage Saab.
Let our beloved marquee go proudly.
Proceed, is a fine substitute.
Hey, Autocar have a man suggesting a Saab potential bidder in a Hyundai link via BAIC. But Hyundai and Kia are linked, and GM have history there.So it is unlikely.
Hang on what about Saab Pty OZZIE as the sole owner. Get Drew on board- he has enough stock to fill a showroom or five.
Nope, let Fiat buy Saab for a Pound or Euro(remember BMW sold Rover for a Pound- plus infrastructure give-away worth hundreds of millions).
Pass the Prozac Christian....
its a sad time for all of us and I regret to say that soon the time will have passed by that potential customers keep waiting and waiting and waiting….until a new car can bee ordered. Nevertheless, I allow myself to repeat my first statement on the purchaser of Saab: Magna!
First, it has failed with its plan to take over Opel. I guess there were many reasons behind and, honestly, I am not that sure that the whole was GM’s fault. Lets be realistic, Magna is making good money with Audi, Volkswagen, Mercedes and BMW and the tension was raising very high that these prestigious customers didn’t want to see Opel to make their products…
So, what about Saab as a target for Magna?
1. Saab is much much smaller than Opel, and despite it’s a competitor for the German premium cars, it cant really hurt them significantly.
2. In previous days, Saab let built the Saab 9-3 cabriolet by Magna in Graz, Austria. So there are boundaries between these two companies that obviously worked pretty well in the past. Actually, as already one time reported, I saw the Saab 9-4X in Graz, perhaps to visit Magna (after all they built the XWDs for many companies)?
3. Magna’s manufactory in Graz is an outstanding and very efficient unit that may need something to saddle up to compensate for other losses.
4. While its an Canadian-Austrian company, Magna, for sure, is not an American company, thus, behaving somewhat different than e.g. GM.
5. Also in Graz there is AVL, the brain behind many high-sophisticated engine these days…something, very interesting for Saab engineers and Magna too.
6. Around Graz a so call Auto-cluster has been established that consist of many companies. While most of the Saab production may remain in Sweden, it still sounds interesting to have local suppliers for some production line in Graz.
7. Most likely, the Austrian government would support quite generously such movement.
8. And this is the best of all….the production of the new Aston Martin Rapid has been recently launched at Magna Graz… Though, doe sit not sound appealing that your Saab might be built next to an Aston? :-)
Guys, would it not be a great idea to launch the idea for the wide public…? Can/should we do that?
Cheers,
wfg
I guess this source is just as good as any.
http://detnews.com/article/20091126/AUTO01/911260351/1148/auto01/No-new-Saab-sale-talks--says-GM-source
There's not much info available publicly about Merbanco because that's the way they've set themselves up. Merbanco is just a shell for acquisitions like this but the people behind it have been involved in a number of similar projects in the past.
Please feel free to go back a posts and re-read the interview I did with Christopher Johnston from the group.
http://ttela.se/ekonomi/saab/1.654936
According to the article Anette helgren does not want to tell what have been said at the meeting and what the plans are.
I read the interview AGAIN but am still not convinced. However, Merbanco seems to be better buyer/owner then Koenigsegg. Pity they haven't been chosen as front-runners back in Summer.
If nothing, Wilson, WY seems like really nice place to live in. :)
First is the obvious irony of the potential demise of SAAB on the very doorstep of its best and broadest vehicle line-up. The second is that GM may actually realize a greater sales price if they continue operating the brand through these product introductions while seeking another buyer.
The Koenigsegg sale collapse may generate more money for GM. Sort of like the chicked and egg scenario. Did BAIC's request for more control tip this deal into the dustbin? Or did GM's realization that they might now be in a position to demand a higher sales price kill the deal? Or maybe both?
As Swade commented, the initial news releases did not add up. There is obviously more to this story than first reported.
This whole Merbanco thing brought a smile to my face this morning. I am happy to see that someone is interested.
Thank you Swade for keeping us up to date.
Closing Saab would cost GM a lot of money, whereas selling them would bring in money. The difference between the two options could easily be half a billion dollars, which is nothing to sneeze at.
The Merbanco option is appealing. There may be other option that we don't know of. One thing is for sure, GM doesn't seem keen on selling any brand to a competitor if they don't have to. That rules out any European or Asian brand, and most suppliers.
Christopher Johnston said his company looks for distressed and undervalued brands, can't see anything more distressed or undervalued than Saab right now. Merbanco has turnaround experience in manufacturing and CJ has a passion for Saab. This could be a marriage made in heaven if it happens. BAIC wants to buy all of Saab now but I think that will only happen at liquidation. If GM was uncomfortable with BAIC's partial ownership of K-Egg they would never sell the whole thing outright. GM may retain ownership and sell later or they may have used this whole process to buy time and get the tooling back to Sweeden where costs are lower and they don't have to deal with the German unions. All conjecture at this point but I'm feeling a little more positive today. At the end of the day I don't think K-Egg ever had the capital to be anything more than a stop gap. Had K-Egg gone ahead I think we would be in the same or worse place in a year or two. My preference is a Merbanco and management buyout at whatever split that works out to be maybe with GM retaining a stake. Here's hoping....
Hummer has been sold for months to the chinese but no aproval from China has come through.
BAIC migh be the same, that the polticalsystem there will take too long to approve the deal and cash flow.
Maybe that explains why Koenigsegg pulled out.
So then were back to Merbanco, they have the capital, they dont need any governent approval for funding or EIB loans, they can just pick up saab from the shelf and proceed straight to the cashier. And guess what no intelectual property right problem would occure between to US based companies, in finally sealing the deal. Magna will never return to the negotiation table after the Opel-gm mess. Fords ambition on a pan-european-motor empire, does not exist, as they already are inbed with chrysler. Some say Geely is lookig at saab as a backup if volvo deal gets to expensive, but there are no way government motors ni the US will give away their technology.
So MERBANCO and GM make your move, get Koenigsegg on board later to help with the branding, and saab should have a solid future.
Go CJ and Merbanco! Glad to see they've retained interested and are back in the game.
Very logical thinking but I can only hope that GM see it this way. Their board have a habit of making surprising decisions. I dearly hope that Merbanco can make contact with the decision makers.
Swade, your reporting AND analysis is second to none. Outstanding job.
Swade, also the swedish Auto Motor and Sport has a source that has confirmed that Merbanco is interested in taking on Saab. Aftonbladet, Expressen and them, that´s from three different places, perhaps they all have the same source though. I don´t really trust in Aftonbladet and Expressen, but Auto Motor and Sport is the real deal, and they wouldn´t print it if they didn´t believe it. Let´s hope they´re right!
http://www.automotorsport.se/news/19825/merbanco-är-helt-klart-intresserade-av-saab/
Swade, also the swedish Auto Motor and Sport has a source that has confirmed that Merbanco is interested in taking on Saab. Aftonbladet, Expressen and them, that´s from three different places, perhaps they all have the same source though. I don´t really trust in Aftonbladet and Expressen, but Auto Motor and Sport is the real deal, and they wouldn´t print it if they didn´t believe it. Let´s hope they´re right!
http://www.automotorsport.se/news/19825/merbanco-är-helt-klart-intresserade-av-saab/
If they choose to, Merbanco can make a Saab a success. Their size and turnover is irrelevant. Its the companies that they buy/sell/develop which tell you what they're capable of.
The reason they were not selected in the first place is best known by GM. My sources say that GM took the buyer who offered them the easiest passage and allowed lots of risk to be transfered.