UPDATE: Whilst I have no reason to doubt the veracity of this claim (this Djup Strupe is known to me), I figured I better call to confirm. There’s no-one at Genii’s offices today.
From Djup Strupe, word for word as I received it:
——
Genii Capital, Luxembourg are interested in acquiring SAAB Automobile and will deliver a bid for the company today.
The group is very well funded and together with its partner have no problem financing the deal.
Genii recently acquired the Renault Formula One Team.
—
The press release about the Renault Formula 1 acquisition:
Genii Capital to acquire large stake in Renault F1 Team
Luxembourg-based investment firm Genii Capital to acquire a large stake in Renault F1 Team as part of a new strategic partnership with Renault
Luxembourg, Dec. 16, 2009 – Genii Capital, the Luxembourg investment firm specialized in new technologies, brand management and motorsport, announced today that it is to acquire a large stake in Renault F1 Team Ltd.
“We are delighted to have been selected as Renault’s strategic partner for the Renault F1 Team,” said Eric Lux, CEO of Genii Capital. “Our long-term vision for this challenging venture aims to return Renault to the forefront of Formula 1. Together with Renault, we intend to run the team with the same values as any of our other investments, prioritising ambitious performance targets without neglecting cost efficiency. We strongly believe that on-track performance can be compatible with business performance, and we will use all our entrepreneurial spirit and commercial know-how to achieve this goal.”
Genii Capital will work in close strategic partnership with Renault to give the team the stability and the resources it needs to succeed in the years ahead. This innovative partnership means that the team will continue to race under the Renault name, powered by Renault engines.
The agreement between Genii Capital and Renault concerns the team’s facilities at Enstone, UK which played a major part in winning two consecutive drivers’ and constructors’ world championships in 2005 and 2006. The Enstone site includes state-of -the-art aerodynamic facilities, such as the recent Computational Fluid Dynamics centre, and is home to one of the sport’s leading engineering teams with recent title-winning pedigree.
Genii Capital will also explore opportunities f or synergies bet ween companies in its investment portfolio and the Renault F1 Team. One example is Gravity Sport Management, a career- management company for young drivers that will leverage the experience of the Renault Driver Development programme. Furthermore, Genii Capital hopes to play an active role in the overall strategic development of Formula 1 through its knowledge of, and access to, new technologies.
“This is a period of opportunity for Formula 1, not a period of uncertainty,” commented Gerard Lopez, managing partner at Mangrov e Capital Partners and board member of Genii Capital. “Formula 1 has an extraordinary level of global awareness that can be used to develop new business-to-business opportunities in traditional and developing markets, and there are exciting new revenue streams to be explored.”
About Genii Capital
Genii Capital is a private investment firm that places common sense and business sense at the heart of the investment decision-making process while targeting solid performance. Genii Capital’s investment philosophy is to create value by investing in ideas, brands and projects that are innovative and of ten disruptive to their business environment. Active in North America, Europe and Asia, Genii Capital’s core investment target areas include brand management, emerging technologies (including public health, energy and environmental technologies), hospitality, entertainment and the automotive industry, including: MOV’IT – a highly specialized high-performance brake systems design and manufacturing company; and MCE-5 – a variable compression ratio engine technology.
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{ 128 comments }
Hopefully it is indeed true, I really hope Saab can survive.
Out of the bottle now hey Swadey!
Fingers crossed for SOMEONE to take over our loved brand!
sab
Wow, where have they been hiding all this time.
Show Ed the Money!
Show Ed the Money!
Show Ed the Money!
To be honest, I will be happy for anybody picking up Saab at this stage rather then letting it die at the feet of Goofy Motors.
My eyes were flooded when I read this piece of great news… there is still hope for our beloved Saab.
o my gosh, i read the first three words, “late breaking news” and my stomach fell. though after reading on im pleasantly surprised.
They have the money, but do they know all needed details to make the deal? As this Saab Automobile sale is hugely about small details, licences and such.
I hope the story is true.
I could watch a Saab F1 with Räikkönen at the wheel
Swade, contact a bookeditor and propose the idea to write a book on all this. Mabye get CJ on board.
Hope you are well btw.
Hi all;
As I’m living in Luxembourg, I can definitly confirm the Genii Renault F1 deal. It was a big story here in Luxembourg and was very well covered in the local news.
monte03
I was about to call AA for him Stav!
Great news indeed, Show GM the MOOLAH!!!! and the deal is done.
fingers and toes crossed
Come on guys, many of the bidders have money! They just don’t want to spend it on Saab, it seems.
An investment firm? Doesn’t look too good in my eyes.
marc, does this company have a good local reputation?
looks like saab and genii have a interest of variable compression, interesting…
From Bloomberg:
“Saab Postpones Board Meeting as GM Proceeds With Unit Wind-Down
By Ola Kinnander
Jan. 7 (Bloomberg) — Saab Automobile AB, the Swedish brand being wound down by General Motors Co., moved a board meeting to tomorrow to discuss production plans as GM said a last-minute deal to sell the unit is unlikely.
The gathering, originally set for today, will examine whether or how to restart production Jan. 11 after a four-week break, board member Haakan Danielsson said. Board members haven’t received specific agenda for the meeting, which may also discuss any possible revised bids for Saab, he said.
“We have customers who have ordered cars, especially the 9- 3” model, Danielsson, who is also head of Trollhaettan, Sweden- based Saab’s engineering union, said in a telephone interview. “We have the materials and we’ll just go out and build the cars unless we hear differently.”
GM has extended a deadline for Saab bids until today, giving Spyker Cars NV more time to come up with financing for its offer, people familiar have said. The Dutch super-car maker plans to submit a revised and more detailed offer before a 5 p.m. deadline in New York today, CEO Victor Muller told Bloomberg News late yesterday.
GM is proceeding with its decision to close Saab, Chief Executive Officer Ed Whitacre told a roundtable of reporters yesterday. No qualified buyer has emerged, he said, and GM doesn’t foresee a sale.
“It’s real easy — show up with the money and you can have it,” Whitacre said when asked whether Detroit-based GM had made a good-faith effort to sell Saab.
Four Brands
The brand is among four being sold or shut as GM focuses on Chevrolet, Buick, GMC and Cadillac after its July 10 bankruptcy exit. Negotiations to sell Saab to Spyker collapsed Dec. 18 and the Dutch carmaker submitted a new offer Dec. 20.
The failed initial talks with Spyker marked the second time efforts faltered to sell Saab. Swedish sports-car maker Koenigsegg Group AB, which had backing from Beijing Automotive Industry Holding Co., walked away from a deal in November. Beijing Auto paid $200 million to buy some car technologies from Saab to use in its own vehicles.”
There is a hint about (the) bids.
CJ has the money,Spyker has the money and Genii capital has the money.
Still GM say show us the money ???
Do they really have the money ??
To be honest, prior to the F1 Deal, I never heard of Genii so I can’t really say more about them…
monte03
This is crunch time. Things are going to happen, and I suspect quickly. Why the last minute like this though? Gotta get to sleep and I suspect I’ll have a lot to catch up on tomorrow morning.
Cheers from Canada!
Mov´it has a very good reputation in germany. And do I read something about a variable compression engine? Is it possible that Genii is THE bidder we all have waited for?
Maybe we will see the SVC engine in a future Saab?
A dream comes true!
Sooooo let’s see.
They own Polaroid. Kinda neat.
They like race cars. Whoaaa, they have an F1 team? Like, real F1? Noooiiiiceee.
They’re pretty quiet about their dealings, but their holdings are quite diverse. Really cool stuff.
Also, their CEO is named Eric Lux. And they’re based in Luxembourg. That’s slightly funny.
Moment of levity in the midst of insanity.
I hope the peeps over at GM feel like Christmas morning with these new bids and get excited like I am.
Oh and the glaringly badassery afoot:
MCE-5!!!
Variable Compression Raio Engine!
They own that!
With that plus Saab’s interest in that, whoaaaa. We have new the new turbocharger, in house. We’re talking about using any fuel, bio, gas, you name it.
Negatives anyone? Don’t say they don’t know they’re stuff. These guys are super super smart. How do I know? They’re crazy rich, and they did it the same way CJ does…buying companies with promise and maximizing their value.
It’s all very exciting. Carry on.
And thanks Steven for not holding this back. You rock for sharing this.
The SAAB BOARD MEETING was originally dated on friday,so it hasn’t been posponed.
Looking at their home page, the following sentences are also pointing in the SAAB direction;
“Through its global business network, Genii Capital is participating in world class operations and has access to unique opportunities. Our often proprietary business and industry expertise is a key resource from which our companies can draw strategic, financial and operational guidance.
The success of Genii Capital and its portfolio of companies are closely linked to the firm’s dedication in complying with its core values: innovation focused, pace and accuracy of execution, business integrity, recognized and valued entrepreneurship, and caring for the communities and the environment.”
It’s 3:30am here, I’m going to bed. I’m substituting they’re for their. It’s time to dream about the conversations GM execs will be having today when they wake up. I have three wishes for this Genie: Get GM to sell the company, turn Saab back to its routes, and turn the auto world upside down with a customer oriented company that sets the standard for what a modern car corporation could be.
I wonder if GM might be interested in some of that VCR goodness from Genii. Might be a nice little bartering equipment at the bargaining table.
Good night (or good day).
I wonder if it is good or bad with a new* bidder this late.
* But for all we know they may secretly have been talking to GM and Koenigsegg for the last 2 months.
I’m from Luxemburg too,
While I’m proud that a Luxemburg firm attempts to buy SAAB, i must say that i don’t trust those guys, they are after all Investment sharks, and it seems to me that they are only interested in Money!
I hope that Spyker can do the deal .
New bidders are to late , it is really descission time, SAAB must go one and quickly, time is money.
Some more information about Gerard Lopez, the founder of Genii Capital. He is originally from Miami. Was this the Miami-connection mentioned earlier by Swade? And he was an early investor in Skype. Interesting.
http://doxcar.com/f1-profile-geniis-gerard-lopez/
GM should definitely be able to work out a deal with one of these bidders one would think. This new bidder sounds excellent, with great technology as well. I am still certainly wishing the best for Spyker’s new offer as well, and hopefully Merbanco is still in there, or any combination thereof, Koenigsegg too is definitely still welcome as far as I’m concerned. I was actually hoping that Proton/Lotus might be interested as well. And as a U.S. taxpayer I am asking GM to sell SAAB.
Being interested in money is usually a problem, I agree. BUT, some investors do look for long term commitments for business with term around capabilities.
However, I have no idea if these guys have a short attention span or if they are serioulsy looking for a long term relationship.
And most likely we will never know.
The Florida investor is a different guy altogether. Not related.
Wikipedia: Genii bought 75% of Renault f1 and in turn belongs to Mangrove capital partners. Interesting though is the connection with Renault. As some of you might recall, Renault was very interested in a merger with Volvo, which however was rejected by Volvo’s shareholders before they finally sold to Ford. The deal would of course also have comprised the lorry department of Volvo, but nevertheless:
renault is the only major European automobile company without a “premium” brand. Unfortunately, i decided to buy no more Renaults…
With all these good bidders, GM is going to have one hell of a lot of explaining to do if it closes Saab now, We’re going to cement the goalposts this time GM!
Swade, here’s a Danish Monte
to cheer you up.
The other photos are good too, especially Monte meeting Viggen! (May 2009):
http://picasaweb.google.com/MrMadsJensen/SKDGF09#
It became more and more obviously that GM do not want to sell Saab. They are inventing all kind of reasons to shut down Saab and take new models and technology back to their other brands. Even that all bidders show all the money (real value and not wish one) they will still refuse to sell it. It is only questioning for them how to show to the public that they did all possible but bidders are not serious.
In pass that system could work but today thanks to internet and web like SU they got resistance they did not expect. I feel it is only thing helping to have some hope as GM did not expect such loyal “bunch”. When they close Saturn no one make any questions just accept fact. We Saab lovers show them we will not surrend without fight and that became biggest obstacle in their intention. That is only reason why they are playing this game.
I agree with all readers that Swedish government did not make enough interest or pressure to force GM to sell Saab. If they show any strong position like Angela did in Germany this saga will end in positive way much before. It is their shame and concequence will be lost of election but that obviously do not worry them (politician are like S..T always going up on surface whatever happens).
Well, it seems the ebay analogy seems right. The bidding really takes off late in the process…
Still, GM and TW, say “show the money”…
If it only was so simple, when the “money” requirement seems different every time someone asks or bids…
I am not picky, I will be happy with any buyre, as long as Saab survives…
GM – MOVE YOUR MIND – SELL SAAB!!!
Reading a bit on Genii, it could be a good fit for Saab with excellent potential.
Things are getting exciting, for the latest episode of this “soap”…
This is the final countdown for sure..
Who imagined all the turns and twists a year ago? Incredible.
Thank you Swade for all your efforts – I think they will pay off.
I do beleave that all parties try to do their best to optimize their own good.
1. GM wants a lower cost than winding down. But not the higher cost of selling to a party that will not survive. GM wants to be very secure of being able to do busines for a very long period with the party they sell to, because they need the brains and technique behind SAAB.
2. The buyer wants to take over SAAB to as low cost as possible (of course). Therfore they must act so they can feel GM:s limits to the wind down process.
3. The Swedish Govt is the most unforseeable here. They do not primerly think in economic or labour market terms but in pure politic terms. If they let SAAB live then they must be sure that it lives for a long time, they have the same interest as GM in that case. And they will be very happy to anounce that they managed to help SAAB if GM finds a good buyer.
On the other hand if they choose to let GM leed SAAB into the wind down process, they will blame GM all the way together with the bad bidders. And then they are in their own back yard and will take political poits in helping the unemployd. They take political points whatever happens! How can we make them responsible?
So if GM finds a buyer they are sure will survive etc, then the Swedish Govt will be happy to guarantee the EIB loan.
And if GM doesn´t find that reliable byer then the wind down process will go on etc.
We will soon see, but my stomac is not as qualm as it looks like.
What action do we take now? There must be something!
Cowboy UP!
Volvo cars and Volvo trucks are separate companies. Like SAAB Auto and SAAB Defense.
This is like tennis! Yah! It is not finnished until the last ball is thrown!
Cowboy UP!
I wonder if pretending to sell SAAB is legal under Swedish law. Sweden is a social democracy and my guess is that you cannot just shut a company that employs 3000 people if you feel like it (because you want the technology and plan to sell the cars under as Opel Senators, for example). If this is so, I can imagine the SAAB management must be carefully considering what they can do when GM announces they cannot find a buyer as they are clearly hinting to the media. SAAB is a Swedish company after all.
This is the final countdown for sure..
Just on Bloomberg
Does not sound very good
“GM’s Saab, one of four U.S. brands being unloaded as the automaker focuses on four surviving lines, is headed toward a shutdown, Whitacre said. Attempts to sell the money-losing unit fell through in late 2009.
“It’s real easy — show up with the money and you can have it,” Whitacre said when asked whether GM had made a good-faith effort to sell Saab. No qualified buyer has emerged, he said, and GM doesn’t foresee a sale.”
The funny thing is that we as customers of Saab are worrying to death the fate of this unique car company whereas the Swedish government seems to be taking a back seat as if there is nothing they can do to save thousands of livelihood and preserve a Swidish pride.
Can’t they just provide an interim solution by taking over the company (more difficult for GM to say no again and again) and sell it subsequently to another interested buyer of its choice?
thought of the same thing last night…”in feb 2008 or something…who knew it was comming to end up like this?”
They could but probably don’t have the guts to take any real action besides giving up and letting the iconic SAAB brand languish.
Richard
V1 – Rotate! Fly SAAB, fly!
This is indeed exciting moments……..
Cheers from Norway
-Olav-
Always on the longest road home when out there with my SAAB. Always!
genii look like a decent tax audit target…lots of missing links…don’t enjoy f1…too many egos…too much politics…cj and vm appear to have genuine interest in saab so would offer the best long term outcome…it has been mentioned cj or his connections have history with agco so they have solid industrial experience on a large scale…guess the money will win the day.
Show Ed Whitacre the money! NOW!!
He has said that it is what’s necessary and that they want to sell! Hurry up and good luck! There is not enough time to think of which owner would be the best – any owner is better than decommission!
Anoyone know what’s Genii’s track record besides acquiring the Renault F1 team?
Info on Lopez from autosport.com
For a bright businessman who speaks fluently in seven languages, and has been at the cutting edge of new technology business for more than a decade, it was almost inevitable that Gerard Lopez would eventually end up in Formula 1.
Yet little is known in F1 about the Luxembourg-based entrepreneur whose Genii Capital company has bought into the Renault team and who promises to bring fresh ideas to the sport at this time of great change.
Lopez is a graduate from Miami University and, after leaving with a bachelor’s degree in management information systems and operational management, he quickly set about climbing up the business ladder.
His early efforts were with Icon Solutions, one of the first web development companies, and through it he soon acquired a host of Fortune 1000 companies.
After heading an e-finance practice company from 1995 to 1998, he founded Mangrove Capital Partners – an investment firm based in Luxembourg.
Although Mangrove has been involved in a wide range of businesses, from private equity to funds and early-stage technology, it is perhaps most famously known as being an early investor in Skype.
Mangrove also brought Lopez into direct contact with F1 through its involvement with the Gravity Sport Management company that looks after a host of young drivers, including Chinese Ho-Pin Tung.
As well as Mangrove, Lopez is chairman of Genii Capital – the company which he runs with chairman Eric Lux and has taken direct responsibility for the involvement with Renault.
Despite his high profile in the business community, Lopez prefers to shy away from the public spotlight – and prefers to keep himself to himself rather than get exposure through interviews.
However, he did recently speak at the Motor Sport Business Forum in Monaco and offer a glimpse of the future where he felt F1 could be heading.
“We see the whole environment as providing an opportunity,” he said. “We’ve been involved in Formula 1 for some time as friends for some people, but never thought about getting more heavily involved than that.
“The situation is such right now that it provides an opportunity for new teams and new investors – it’s not a time of uncertainty but a time of change.
“Times of change usually provide an entry point. We believe there is a chance to enter the sport and build a platform that sort of has to reinvent itself. If we were to become part of F1 we could be part of that reinvention.”
He added: “For us, what would be important is to provide stability over time. The business opportunities in F1 lie very rarely in making money out of your team; they should lie in making money out of the business platform that you have.
“Put any seasoned executive into F1 and they turn into a big kid, essentially. It makes them much more approachable. So for us, F1 is an excellent business-to-business platform.”
But do not for a second misinterpret Lopez’s comments as suggesting he is only looking at coming into F1 purely to see what he can take out of it financially.
He has some bright ideas that could help the sport move with the times – and was one of the key figures who recently called for a wholesale rethink about how F1 treated new media.
“The sport and its environment are going to be forced to change,” he said. “Most of the broadcast contracts are based on a way of looking at things from 15, 20, 25 years ago. The fact is that in three or fours years’ time, most people in a lot of countries will be watching it not on TV as we know it today, but over the internet. And that completely redefines how you negotiate contracts and how you distribute content.
“You can’t control the internet audience in the same way as you can control the television audience. It’s a similar process to what the music industry has gone through in terms of digitising itself. You have to figure out new ways of making money out of it, because at the end of the day that’s what keeps the sport alive.”
Info on Lopez from autosport.com
For a bright businessman who speaks fluently in seven languages, and has been at the cutting edge of new technology business for more than a decade, it was almost inevitable that Gerard Lopez would eventually end up in Formula 1.
Yet little is known in F1 about the Luxembourg-based entrepreneur whose Genii Capital company has bought into the Renault team and who promises to bring fresh ideas to the sport at this time of great change.
Lopez is a graduate from Miami University and, after leaving with a bachelor’s degree in management information systems and operational management, he quickly set about climbing up the business ladder.
His early efforts were with Icon Solutions, one of the first web development companies, and through it he soon acquired a host of Fortune 1000 companies.
After heading an e-finance practice company from 1995 to 1998, he founded Mangrove Capital Partners – an investment firm based in Luxembourg.
Although Mangrove has been involved in a wide range of businesses, from private equity to funds and early-stage technology, it is perhaps most famously known as being an early investor in Skype.
Mangrove also brought Lopez into direct contact with F1 through its involvement with the Gravity Sport Management company that looks after a host of young drivers, including Chinese Ho-Pin Tung.
As well as Mangrove, Lopez is chairman of Genii Capital – the company which he runs with chairman Eric Lux and has taken direct responsibility for the involvement with Renault.
Despite his high profile in the business community, Lopez prefers to shy away from the public spotlight – and prefers to keep himself to himself rather than get exposure through interviews.
However, he did recently speak at the Motor Sport Business Forum in Monaco and offer a glimpse of the future where he felt F1 could be heading.
“We see the whole environment as providing an opportunity,” he said. “We’ve been involved in Formula 1 for some time as friends for some people, but never thought about getting more heavily involved than that.
“The situation is such right now that it provides an opportunity for new teams and new investors – it’s not a time of uncertainty but a time of change.
“Times of change usually provide an entry point. We believe there is a chance to enter the sport and build a platform that sort of has to reinvent itself. If we were to become part of F1 we could be part of that reinvention.”
He added: “For us, what would be important is to provide stability over time. The business opportunities in F1 lie very rarely in making money out of your team; they should lie in making money out of the business platform that you have.
“Put any seasoned executive into F1 and they turn into a big kid, essentially. It makes them much more approachable. So for us, F1 is an excellent business-to-business platform.”
But do not for a second misinterpret Lopez’s comments as suggesting he is only looking at coming into F1 purely to see what he can take out of it financially.
He has some bright ideas that could help the sport move with the times – and was one of the key figures who recently called for a wholesale rethink about how F1 treated new media.
“The sport and its environment are going to be forced to change,” he said. “Most of the broadcast contracts are based on a way of looking at things from 15, 20, 25 years ago. The fact is that in three or fours years’ time, most people in a lot of countries will be watching it not on TV as we know it today, but over the internet. And that completely redefines how you negotiate contracts and how you distribute content.
“You can’t control the internet audience in the same way as you can control the television audience. It’s a similar process to what the music industry has gone through in terms of digitising itself. You have to figure out new ways of making money out of it, because at the end of the day that’s what keeps the sport alive.”
Could this be the replacement for the Russians in the Spyker deal ? F1 relatonsship. My 2 øre..
Spyker reported making a third bid for Saab!! I like this guy, he never give up!!
http://www.thelocal.se/24242/20100107/
What happened to Chris Johnston? He’s not commenting here now! I think GM will sell Saab!
I think that Spyker will have a plan, but cannot show the money. So I think that Genii Capital is the front runner for Saab from now.
Many Thanks Swade! I’m so impressed of your great engagement for SAAB. I press my favorit-link to this website “many times” each day and it’s allways something new to read. And thanks to all readers and people who comment the articles. Fantastic work getting us all updated on this SAAB drama. Griffin Up
To Ed Whitacre: If you want to make yourself happy, try to make someone else happy… And don’t forget make SAAB lovers happy
Best Regards from a snowy Stockholm
what is gm selling here-
the brand?
the technology?
2 vehicle platforms? sold
real estate?
a margin scheme
fitout
dealer network?
capitalised debt?
orders?
my mind boggles.
Exactly my thought, Per. Is Djup Strupe sure that they are bidding as lead bidders of a separate bid? Given the complicated negotiation process it would make much more sense if thy were a new backer of the Spyker bid.
xtac – I think that the brand is owned by Saab Automobil AB, so GM cannot sell the brand itself.
Anyone correct me if i’m wrong
Spyker has a (short) F1 history so they might have had discussions with Genii in the past when they tried to sell their F1 team.
All, I can’t see a sale happening! All my gut instincts and infor coming out says they are shutting it down. Not sure they ever wanted to sell it to be honest…..
The brand, Saab, is owned by defence industry Saab AB (www.saabgroup.com).
GT.se
From Google trans
Metal: tactics of GM
- A tactical move to get some spice to your bids.
I think Paul Akerlund, metal chair at Saab Automobile, the most recent trips around the company’s future.
On Wednesday, said GM’s new chief executive Ed Whitrace to the American press that he for his part did not believe that there would be no new bids for the Saab which could save the label from the closure.
Paul Akerlund looks not too gloomy on the situation.
Put pressure
- We know that there are several pieces that are in the picture and I think I probably also be able to say quite certain that at least some of them have money, “he says.
His assessment is that GM management wants to go out and put maximum pressure on potential buyers.
- I choose to interpret it that way.
- It is possible that you also wish to state clearly that it is expected that the Swedish government’s representatives have something with him.
http://www.gt.se/nyheter/1.1836626/metall-taktiskt-utspel-av-gm
Read more about the Saab brand at:
http://www.saabgroup.com/en/AboutSaab/one_name_two_companies/one_name_two_companies.htm
/B
Markac wrote: “With all these good bidders, GM is going to have one hell of a lot of explaining to do if it closes Saab now.”
Having the money needed to turn Saab around isn’t a good reason?
I want Saab to survive, but it’s going to take a lot of money, even beyond the EIB loan. And that’s a point few people on this site have been making.
I was born in Luxembourg and I live here
would be awesome.
All I can say is that this deal actualy exists. It’s the Luxembourger Gerard Lopez who is involved. He’s a smart guy who bought parts of Skype some years ago and sold them later, making a lot of money.
Whitacre and GM know they have to have a deadline or else there will just be a lot of “posers” talking about buying Saab. Now that we have at least a few new parties in the mix, it seems reasonable that at least one might actually have the money necessary (otherwise, why announce at the lsat minute and make a fool out of yourself if you lack funding?).
We’ll know in a day or so.
Genii Capital is a rather recent set-up with no management experience in the car industry. The Chairman has a financial analyst and private equity investor (technology sector) background making a lot of money out of Skype, the CEO comes out of real-estate. The Renault F1 deal was presented by them as a financial operation. They do not aim at taking responsability for operational management but will be trying to get a profit out of the operation.
Could they finance a deal such as Saab? I am rather sceptical, but maybe. They never published anything on the cash they actually hold, either directly or through investment vehicles third parties would have invested in. Why would they get in there? A bit, because they like cars. Mostly because they hope for a good deal.
GM seems to look for someone who 1) takes SAAB of their hands for less cost than winding it down 2) has the necessary deep pockets to make sure SAAB will stay with them for sufficiently long time that nobody ever comes back to GM asking for fresh money (as happened with Delphi).
Having seen such fire-sales from the inside, I could imagine that at least some of the parties getting in there are looking mostly for a free ride…
Gerard Lopez definitly got the money for this deal. He’s an absolutely car freak, owning Lambos, Ferraris and even a veron. I can confirm all this. He’s a man of his word, and if all this isn’t a cheap rumor the media will react tomorrow! When it is the fact I’m going to scan the articles.
Wow, I’m sure Volvo’s glad you’re a Volvo fan!
Seriously, I’m sure all of the bidders are quite aware of the objective of the EIB loan which is:
” The project concerns RDI activities related to the improvement of fuel efficiency and safety of the Saab Automobile’s future car fleet. The project includes also the capital expenditures associated with the new tooling and upgrading of existing facilities for the production of the above developments. The project, which will be implemented over the period 2009-2012 (now probably 2010-2013), will be carried out in the promoter’s existing facilities in Trollhättan, Sweden, and at engineering facilities of automotive suppliers and specialised engineering companies.”
You think all the bidders are trying to put one over on GM? (Not that it doesn’t deserve it!). I think not, and I don’t think any of them out to make a fast buck either. That’s impossible and they know it will be a long haul.
Spyker officially confirms 3rd bid:
http://ttela.se/ekonomi/saab/1.694349
I don’t think we need to be afraid of investors interested in making money and whether they ahve experience runnin g car companies or not I also don’t think is all that important.
Saab needs an owner interested in making money, preferrably big money, but over the long run. I’d be concerned if the new investor was out for a fast buck. Long term committment is key in a business that lays plans over five to ten years. Quarterly reports to share holders has driven GM down the drain and although they have had a long term committment in theory they have followed the analysts wishes far too often.
As for the management experience, I settle for can handle money and brings new thinking. Saab is starting to look like a mini GM and that can never be good. The current management team has all the necessary skills to run a global car manufacturer but need act more agile than before and that agility can be brought in by an outsider with drive.
Keeping my fingers crossed for a sensible solution – Good PR GM, you need it more than anything.
One thing that surprises me is that “many” people here seem somewhat negative to parties going in to this SAAB process with intentions of earning money. Rest assured, making money is actually an important part of business like this, involved bidders are after all companies/investors/entrepreneurs (u name it!) and not charity organizations. Also important to notice here is that Merbanco, Spyker and Genii are all showing more than average interests in cars, and that is definately something to put on the bright side of this saga.
We should all be rather enthusiastic for every bidder showing up here now. This race will now hopefully successfully pass the finish line and not end up in a place where the sun refuses to shine.
GM: Sell SAAB, NOW!
Genii UP!
Cowboy UP!
Spyker UP!
The Swedes UP!
Viking UP from Norway!
-Olav-
Always on the longest road home when out there with my SAAB. Always!
From Autocar.co.uk today.
“General Motors CEO Ed Whitacre says a deal to save Saab from extinction is unlikely to be completed, despite reports claiming two unknown Swedish groups have made eleventh hour bids to save it.
Whitacre said no party had come forward with the necessary funding to buy and restructure Saab. He also revealed that GM had done “everything humanly possible” to sell Saab.
“It’s real easy,” he told Reuters. “Just show up with the money and you can have it [Saab], and nobody’s showing up with the money. I think we’ve done everything humanly possible.”
Dutch sports car firm was previously the only firm known to have submitted a bid for Saab ahead of today’s 4pm deadline, but Swedish newspaper Dagens Industri said two new parties were likely to submit bids before the time expires.
Sweden’s state secretary for industry Joran Hagglund told the paper that three parties had expressed an interest in Saab and two were likely to follow this up with bids.
“We have had contacts with several different groups since the 18 December, among them three from Sweden,” said Hagglund. “I should think that at least two of them will submit bids to General Motors during Thursday.
“The problem is that none of them can show that they have financing in place.”
Hagglund also revealed that Koenigsegg, which had originally bid for Saab before the deal collapsed, had not renewed its interest. The Swedish government is set to meet GM bosses on Tuesday to discuss Saab’s future.
Whitacre said if no suitable bid before the deadline had been received, then an orderly closure of Saab would begin.”
News about the Genii bid for Saab begins to appear in Swedish media.
Here’s a google translation from http://www.dagensarbete.se/home/da/home.nsf/unid/99F3FE3D479DB377C12576A40035C943?OpenDocument
“New bid for Saab today
Today, General Motors considering a new bid for Saab. Interested buyers are investment company Genii Capital, which among other things, is a partner in the Renault F1 team.
- Genii Capital is a financially strong owner who also has strong partners, “said a source familiar with the Geniis plans.
Genii Capital has signed the Swedish government and told of his plans.
What Geniis financially strong partners is to not tell the Swedish entrepreneur. The question is why the interested party shows up only now?
- I have worked on this deal for over a year and it takes time to get all the pieces in place, “says Today’s work is known.
Genii Capital is an investment company based in Luxembourg. The company specializes in investing in new technology and motorsports, as reported on their website. In December it bought himself up in the Renault F1 team where Reanault is another major shareholder.”
A couple of things perplex me:
a) Didn’t GM give anyone a sales price for Saab? If so, they meet it or not. Ed’s saying “show me the moolah”, but evidently there IS no set price?
b) I’ve read that part of the agreement is that GM does NOT want to provide engines etc to the new owner beyond a certain point. That was the final straw for Penske with Saturn. I would think they would prefer to keep this agreement as long as possible to keep their othr plants running.
Can anyone comment?
I don’t think anyone is trying put something over on GM, I just think some may not be in the league they think they are. My point is that it will take more money than just the EIB funds — a lot more — to make Saab have a chance at surviving for the long term
The Genii source says
“- I have worked on this deal for over a year and it takes time to get all the pieces in place.”says Dagens Arbetes source.
So they’ve been working on a bid for over a year, then it must be a good one.
TJ wrote:a) Didn’t GM give anyone a sales price for Saab? If so, they meet it or not. Ed’s saying “show me the moolah”, but evidently there IS no set price?
I have no doubt that, yes, GM has a set price and that the buyers are aware what it is. I also bet some buyers are telling GM, “No problem, we’ve got the money,” and have yet to do so.
b) I’ve read that part of the agreement is that GM does NOT want to provide engines etc to the new owner beyond a certain point. That was the final straw for Penske with Saturn. I would think they would prefer to keep this agreement as long as possible to keep their othr plants running.
.
My understanding of the Penske/Saturn deal is that Renault got cold feet before the deal and canceled it. Thus Penske had no maufacturer for the cars. Nothing to do with GM.
I think it’more than a question of money. Mostly it’s GM playing hardball. Geely has found $2 billion to buy Volvo, and yet GM turned it away at an early stage. It wasn’t my favourite bidder, but at least it could find the money. GM has it’s own agenda. Of that, I’m sure.
Unfortunately my guts say “GM doesn’t want to sell”
Fortunately my guts aren’t always right
The only one that we know of who has been around since the begining is CJ..
From The Wall Street Journal:
“General Motors Co. (GM) Chief Executive Ed Whitacre’s comments over the unlikely sale of its Swedish Saab Automobile AB unit were unwelcome and premature, a person close to Saab told Dow Jones Newswires Thursday.”
http://online.wsj.com/article/BT-CO-20100107-704111.html?mod=WSJ_Deals_LEFTLatestHeadlines
Comment from Genii in e24.se.
http://www.e24.se/business/verkstadsindustri/rykten-om-nya-budgivare-fran-luxemburg_1779047.e24
- There is no official statement about this. Maybe there will be more information available today, maybe not, says spokesperson Julien Nerguisian to E24
Ed needs to go. Not only doesn’t he know about cars, he is also apparently a poor businessman.
Get rid of ED, not SAAB.
Ed Down.
“So they’ve been working on a bid for over a year, then it must be a good one.”
It might simply mean that it has taken over a year to find money for the buy.
Someone needs to muzzle that guy seriously.
a.
Jöran Hägglund says today in a radio interview that If the entry agreements for spare parts can not be met, this may cost more for GM than what it costs to close Saab.
wow really beautiful pictures…
i am hoping for an happy end. I just can’t imagine the world without Saab… without the new 95… the next 93 convertible…
Saab up!!!
Hmm, very odd comments from Mr. Hägglund. If I interpret him correctly the committments towards customers and dealers in regard to spare parts are so costly to fulfill that it would be a problem for GM. Also selling Saab to a buyer that can’t handle later goes bust would mean that GM retains the committments. I am at a loss, the spareparts business is almost pure profit. GM can produce enough parts in the next year to keep themselves happy for ages. A company taking over Saab and later going bankrupt can easily sell the parts business to the next company.
Warranty committments will dissappear automatically after a couple of years and if you don’t need to spend the money it doesn’t cost. I think GM will want to keep the Goose that laid the eggs for a few more years.
Its good to see another interested party stepping up and showing and interest in Saab.
Thank goodness no matter how you turn the letter A in SAAB, its still an A unlike the E and N in Genii (what the hell)
have swedes lost the will to live???
Saabsunited is quoted in almost every big newspaper in Sweden right now! As many of you, I don’t really give a rat’s ass about WHO aquires SAAB, as long as anyone does it.
indeed Cj…genuine interest in saab…does a decent radio interview…but also a realist…continue to wish him and Merbanco well… think Swade identified Merbanco as his ‘ideal’ partner with saab early in the piece… hope Jaj is doing well under all this pressure
I’m with you!
Each party has its positive and negative and I can’t choose.
Spyker needs Saab as Saab needs Spyker. That is interesting and is a challenge that will bring out the best in both parties.
Genii has connections to Renault (and Spyker?) and Renault could also be of benefit to Saab, while Saab could help Renault (in USA, perhaps?).
General Motors must do the right thing now! SELL SAAB!
Saab Up!
GM-Saab= 1-1
Scorers: Big Ed (yesterday), Saab Management (today)
The game goes into extra time…
From The Wall Street Journal:
“The speculations about that GM is unwilling to sell Saab have been refuted by GM. We presuppose that that’s the case and that all involved parties are now pulling in the same direction. We’ve also been reassured that the Swedish government is working for such a solution. We expect concrete and trustworthy bids will be submitted during the day,” Stefan Lofven said.
http://online.wsj.com/article/BT-CO-20100107-705158.html?mod=WSJ_World_MIDDLEHeadlinesEurope
hoping Merbanco are not stuck on Interstate 80…its a very long road
From reuters:
http://www.reuters.com/article/idUSLDE60616C20100107
Potential bidders circle Saab as deadline looms
.
.
“We have had contacts with several different groups since the 18th of December, among them three from Sweden,” Hagglund told the paper. “I should think that at least two of them will submit bids to General Motors during Thursday.”
“The problem is that none of them can show that they have financing in place,” he said.
I have a strange feeling when I am reading the last senence of JH…it’s almost a quote from Ed’s interview yesterday.
Here is my conspiracy theory: Swedish Government and GM have already decided about the wind down of Saab, that’s why they are using almost the same wording…
And I hope that I am wrong!
Olav,
Great comment; you hit the nail!!
As I read it Hagglung refers to the new Swedish bidders who want to do a management buyout.
What a stupid & worthless person is that Hagglung.
Instead of speaking negative, move your fat ass and do your job…idiot!shame on you !
Saab will survive, one way or another !
You Hagglung will not (at least, politically), that’s for sure !
There is obviously no problem with an investor who want’s to make money – it would be suspicious if they weren’t.
I would expect Genii Capital, in case they were indeed in the deal, to be a vehicle fronting for a larger group of investors – as usual in a this type of investment company. This is really a small firm with the main spokespeople having other, rather time consuming day jobs. And with a company like Saab we are really talking hundreds of millions of euro deep pockets that are needed. I am really not sure Genii on it’s own does have that kind of money to put into a single, risky deal.
More generally, this deal most probably is less about a price tag GM puts on Saab, than on conditions an investor puts to GM before he will consider taking it over (ie. how much debt will take away from Saab, under what terms will GM continue to provide parts, etc., in how far will GM participate in financing, liquidity provision, etc.). Basically, the investor asks GM how much THEY put on the table to get rid of Saab. In return, GM will want to make sure that the investor will in the long run have the money to keep production rolling, pay the bills and develop new cars, etc.
It is this particular setting of the sale of a business that doesn’t make enough profit for GM but would cost it cash to close down that explains why on the one hand you have parties claiming to be a buyer while GM says at the same time, that they cannot find one…
Regarding the lack of funding:
Hagglund is only referring here to the 3 SWEDISH groups. He didn’t mention Spyker, Genii or Merbanco as having lack of money…
I think Big Ed’s statement yesterday was just to higher the pressure on new bidders.
I HOPE that Big Ed is already writing his text for the press conference at the Detroit motor show saying “We sold SAAB. We sell Electric cars. We will be profitable in 2010″. In my eyes, he’s way to cocky to admit as CEO that he’s not even able to sell 1 of the 4 brands. It would make him a very small Ed…
I love how GM acts like there is no one that wants to purchase Saab. I wish GM could cut through it’s corporate b.s. They are horridly mismanaged and if they could manage to cut corners off a circle they would.
putting saab on hold for a minute i believe GM will cease to exist… Adam Opel will jump ship [german unions ain't dumb and with freedom will build cars people not fleets want to buy], some bright spart will jump at the chance to own chevy and develop it into a serious performance manufacturer possibly in combination with holden…
Ok I am sure there is someone that has made a bid that has pockets deep enough to
1 aqquire Saab
2 run Saab
3 bring Saab into a very bright future
4 make money
I will be the first to admit my working knowledge of a transaction this large is well above me. I run a book store, yes I am a nerd but even I know there is money out there. If Ed wants to see the damn money then someone has to show him the money. He works for a bunch of share holders, 60% of which is controlled by the american people. He has to make a deal it in his long term interest to do so, but he has to do it in a way he comes out “Looking Good” as does GM.
I may be wrong but that is my thoughts.
Thank You All for being here everyday with me.
You know what……SENSATIONAL
A Renault-SAAB turbo F1 team combined with the return of Kimi Raikkonen as their #1 driver. That would be the ultimate dream come true.
Saab F1, with Per Eklund behind the wheel!!! lol
here are the statutes of GENII CAPITAL S.A.
ONLY 31.000 EURO ASSETS !
http://www.etat.lu/memorial/memorial/2008/C/Html/2028/2008097974.html
I wonder if Genii is a private equity firm.
Many of the private equity firms that have bought US firms have run them in the ground, stripped them of assets, grossly cut wages and employees, and loaded them with debt.
I sure hope this is not the case with Genii.
GENII is a holding company !
Capital Genii although based in Luxembourg is mainly composed of wealthy families Flemish.One of the wealthiest families Flemish better known in Belgium, is none other than the family Beherman, Saab importer for over thirty years (also importing Rolls-Royce and Bentley before passing under the German flag of the two British brands)…
Wow, I loved Luxembourg when we visited. The kind of place where everyone seems genuinely happy.
Works for me.
The service of the Belgium Importer is very very bad, I had to warn him with a lawyer concerning a guarantee
problem !
Belgium is even better — now when I visit Saab HQ, I’ll be sure to get some of my favorite beers…
Well, this makes sense. They took over the Dutch SAAB importership from bankrupt Kroymans group.
In Luxembourg we got NO Saab importeur.
The importer for Saab LU is Beherman. It’s the Belgium importer too based in Belgium’s capital Brussels.
Furthermore we got 2 official Saab garages. One in Luxembourg City (capital) named GRUN and one in Mersch (in the north of the capital, middle of the country) named KREMER.
Luxembourg is dependant on Belgium (not like BMW, etc. they go their own main importer in Luxembourg) therefor we never got problems with it!
http://www.behermanbrussels.be/
Waat wor dann do genee?
So, we have Etienne (Saabhuy), Jeff, Mellechmann, Francis within reach of the place — go do what you can to make this thing go!! (Of course, now that I’m saying this, aren’t the banks in Luxembourg some of the world’s biggest and best? I don’t think they probably need much help.)
I’d like to show Ed Whitacre something else myself. Your company exists because the American public bailed you out. Now sell Saab and recoup some of my money before you like your predecessors pass through GM’s revolving CEO door.
So this may be the European dealer group that we’ve been hearing rumors of since the bidding started? If it is they may be a lot farther along in the bidding process then we thought, kind of like an Ebay snipe.
Enough already about CJ….Why do several people think he will save SAAB?? Has he done something in the past that I missed? He appears to be a really nice guy but why keep asking the guy to save SAAB when clearly that is not going to happen?
The EIB is in Luxembourg….. Maybe someone will just walk across town and get the ball moving.
Can SAAB have this “Genie” ?
http://dummidumbwit.files.wordpress.com/2009/07/eden_sp01.jpg
Well, let’s not exaggerate but Luxembourg’s wealth (of the country and the population) nowadays is based on the banking sector. This business is quite powerful due to our banking secrecy.
I personally don’t think that the fact of the EIB being based over here would change something.
This is exciting! Threads of hope and much interest.
Renault has twice exited from NA. On its own in the 70s or so when their cars were much quirkier than SAABs (think of the R16 with unequal wheelbases and the L4 transverse midships between the drive wheels and windshield; or the R-12 with ski slope hood and trunk). Then after supplying smaller models (the R9?) to American Motors before Chrysler swallowed it and kept only the Jeep line. I think that’s why they got cold feet with Saturn. Strangely, they do now have a foothold in the USA–Setra-bodied intercity buses are visible on the roads.
BUT, small and mid-size Renaults now are very nice cars and a 9-1 derived from a small or mid-sized Renault could be delighthful. A connection to SAAB could be very good. But for those still worried about government ownership, does the French gov’t still not own a big chunk of Renault?
Cheers from Montreal,
B
http://www.autosport.com/news/report.php/id/80598
A short article about the founder of Genii, Gerard Lopez. He speaks about the acquisition of Renault F1 and I can clearly see parallels to the sale of Saab and the “change” that the car industry faces – going electric.
“The situation is such right now that it provides an opportunity for new teams and new investors – it’s not a time of uncertainty but a time of change.
“Times of change usually provide an entry point. We believe there is a chance to enter the sport and build a platform that sort of has to reinvent itself. If we were to become part of F1 we could be part of that reinvention.”
Hans, I agree with you. It’s one way only and i’s to sell. I believe it’s possible to do that now. GM will sell SAAB.
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