January 29, 2010 in News
Received from Djup Strupe…
Q: What agreement was reached between GM and Spyker?
Spyker has signed a definitive agreement to acquire the operations of Saab Automobile AB, subject to customary closing conditions and regulatory approvals.
Q: When will the sale be complete?
The next step in the process is approval by the European Investment Bank of loans to fund the operation of the new company during the transition. The sale is expected to close in mid-February, and is subject to customary closing conditions, including receipt of applicable regulatory, government and court approvals.
Q: How much is GM receiving for Saab?
Under the terms of the agreement, GM has transferred shares of Saab Automobile AB to Spyker, in return for both cash and preferred stock in the new company. While we are not disclosing details of the transaction at this point, we believe the deal provides fair value to GM and its shareholders, while also providing the opportunity for a secure future for an iconic auto brand. More details will be disclosed in due time.
Q: Why is GM selling Saab?
For GM to be successful it needs to focus on its four strongest brands in the U.S. – Chevrolet, Buick, GMC, and Cadillac – and on its comparable brands in other major markets. As a result, GM in the U.S. announced early in 2009 that it would sell or wind down Saturn, Pontiac, Hummer and Saab.
We believe the best opportunity for Saab’s future success lies with an owner who can build on Saab’s iconic status.
Q: How long will GM provide transitional support?
GM will provide components and 9-4x crossover vehicles to Saab for a period of time to be mutually agreed between the parties.
Q: Did you seek U.S. government approval for this sale?
GM has advised the U.S. Department of Treasury of the proposed transaction.
Q: In which countries does Saab have sales operations and how many dealers are there?
Saab is doing business in more than 50 countries around the world and has approximately 1,100 dealers. (218 total in the U.S.)
Q: Does the purchase agreement include all Saab dealers?
Saab’s dealer network is part of the proposed transaction; however, we cannot comment on plans for individual dealerships.
Q: How many employees does Saab have?
Saab has approximately 3,400 employees worldwide.
Q: Will GM provide sales and service support?
GM and Spyker are working together to ensure a seamless transition for customers. Customers can rest assured that their Saab warranty will be honored.
Q: What impact will this have on the wind down process?
Steps are being taken to implement a plan to exit wind down when the transaction closes. The wind down team is delighted to be preparing to hand the company back to management and return to business as normal.
Q: Which Saab vehicles will continue to be produced and sold?
The agreement provides for the continued production and sale of the current 9-3, as well as for the launch of the new 9-5 and 9-4X. More details to come.
Q: Will Saab leadership team and employees transition to the new buyer?
Q: What happens if the final approvals and EIB loans cannot be obtained?
GM will continue with the wind down of Saab.
Q: If so, who bears the financial risk since the deal has not closed yet?
That is spelled out in the agreement between GM and Spyker. We are not disclosing that level of detail at this time.