The announcement has been made (as has the 3.30am phone call).
Koenigsegg Group have pulled out of the Saab purchase and the big question still on my mind after scouring a dozen Swedish and English news reports is – WHY???
Here’s the release from Koenigsegg, translated via Google:
KOENIGSEGG GROUP AB end the discussion ON THE ACQUISITION OF SAAB AUTOMOBILE AB
GOTHENBURG. Koenigsegg Group AB announced today that negotiations for the acquisition of Saab Automobile AB have ceased.
“We regret that after six months of intensive and focused efforts have come to the painful and difficult conclusion that we will be unable to complete the acquisition of Saab Automobile,” said Christian von Koenigsegg.
“The time factor has always been critical to our strategy to reinvigorate the company. Unfortunately, delays in completion of the deal led to risks and uncertainties that prevent us from successfully implementing the business plan for the new Saab Automobile. ”
We are grateful for the support of Saab Automobiles directors, employees and trade unions have given us throughout this process.
No reasons why there.
According to every news source there has been in the last few months, the finance was all lined up and all we needed was the go-ahead from the EU to tick everything else off.
So why?
DI.se managed to get CvK on what must be a very secret phone right now.
There will be no business between the sports car manufacturer Koenigsegg and GM-owned Saab. Koenigsegg withdraws from the deal. “We have fought as long as we could but now we feel the time running out for us one hundred percent to be able to believe in the plane,” said Christian von Koenigsegg.
Funding has been unclear and many questions. Now it is clear that there will be no business. Koenigsegg Group announces that talks with GM about a purchase of Saab Automobile is interrupted.
“It is incredibly sad. There are many who fought for this for a long time, especially Saab and Saab’s leadership,” said Christian von Koenigsegg.
What’s gone wrong?
“There is no special piece of the puzzle and I would not point the finger at any particular way. It’s complicated negotiating process with all parties. The overall process has not moved at the speed required.”
Is that the negotiations with GM or finances that harsh?
“It has nothing to do with fundraising. All parties have been helpful.”
What does this mean for Saab?
“It is entirely in GM’s happening today.”
How close to a deal were you?
“We have come far in the process, but without having the clearance which must be ready to move on. We have not exactly clear date for when it might be clear and in the meantime bleed Saab. The longer time goes by so shifting business plan and the economic outlook becomes opaque. ”
The consortium would buy the Saab, Koenigsegg Group, which in addition to Christian von Koenigsegg the Norwegian entrepreneur Bård Eker and Augie Fabel, American entrepreneur and founder of the telecoms company Vimpelcom.
It’s nothing to do with fundraising?
And how do you just wash your hands of this and say it’s GM’s business now? After all the faith that’s been shown?
Why isn’t there a proper reason that makes sense in all of this?
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So what happens now?
Fritz Henderson has said they’re going to think about it for a few days.
I know a few of you have already suggested “get Merbanco on the phone” in comments and contact with CJ from there was one of the first things I did when I woke up.
It seems they might be busy with other things now, but they’ve forwarded me the following:
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.
I can’t adequately describe how shocked, how mad, and most of all how sad I am right now for the people at Saab, and in Trollhattan itself.
Just shocked and sad.
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UPDATE:
A translation of an article from DN.se. Thanks Stig.
Koenigsegg Group has terminated their negotiations to aquire Saab according to a press release by the company.
According to Christian von Koenigsegg; time was a critical factor.
– As it looks like now, we cannot go through with this. The time frames are too unclear; there are many processes that would have to come to a coordinated conclusion. The time factor has been stretched and not all of the elements have happened at the same speed. We have a business plan, but when Saab is bleeding and cannot be developed during this time of waiting, the economic implications and the result of the business plan becomes completely unclear (unpredictable) says Christian von Koenigsegg.
– We had set an absolute final deadline by November 30, and today we realized that there was no chance to reach a business conclusion within that date. Therefore we do not dare believing in the plan. It has taken too long time.
Who is to blame for that this is taking so long?
– We are not pointing at anyone in particular. It is an unbelievably complicated process, von Koenigsegg says.
General Motors have earlier said that it would be possible to conclude the business with Saab around the change of year, coordinated with the reconstruction which was started last February when GM gave Saab over 100 million Swedish Crowns to run the company.
During the year Saab sales have dropped by 65% – 70%.
Koenigsegg Group have signed an agreement to purchase Saab, and Chinese Beijing Auto (BAIC) later promised to offer several hundred millions Swedish Crowns in exchange for minority ownership in the new owner group.
On October 21, the European Investment Bank (EIB) granted a loan for development of environment and safety technology of more than four hundred million Swedish Crowns.
– I have no comment. You must come back after we have had a chance to talk among ourselves, says Paul Akerlund, spokesman for IF Metall’s workshop club (union?) at Saab Automobile in Trollhattan.
The only comment comes from Gunilla Gustavs at the (Saab Automobile) information section:
– We all feel quite betrayed, she says.
Secretary of State Joran Hagglund at the Department of Industry says to the internet news site E24 that he does not have any comment to the statements concerning Koenigsegg and Saab.
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UPDATE II
From Saab’s internal mail…..
This is a completely unexpected turn of events and I am, of course, extremely disappointed. We have all put in enormous effort over the past months and had high hopes for Koenigsegg Group as our future owners.
I understand that you will have many questions about Saab’s future. Now we have to wait for GM’s direction regarding the next steps. According to Fritz Henderson, this decision is expected next week.
Jan Åke Jonsson
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As Eggs has mentioned in comments, keep the language to your usual high standards. I know it’s an emotional time, but this is still a family site.
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