DI.se are reporting that BAIC are “assessing their options” in the fallout of The Koenigsegg Decision®
BAIC still plan to expand and become a global company, so Saab might still be on their radar. Time will tell if they are on GM’s radar.
E24 opine that the evidence lends considerable support to the argument for closure of Saab. It’s bleeding cash, has very low sales and they think it would need to be supported for another 6 months while a new buyer was found.
The other option they entertain is merging Saab with Opel, but they dismiss this as it’s been tried before and has not worked. In addition, the majority government-owned GM would have a difficult time explaining to it’s shareholders (the people) why it’s supporting what is reported to be a loss-making company on the other side of the Atlantic.
TTELA consider two possible lifelines for Saab – GM keeping it open or GM selling it to BAIC.
Reasons they might keep Saab are GM’s improved cashflow since the ‘sell’ decision was taken, the fact that the company is lean and with minimal debt, and of course the cars that are ready to go.
TTELA also report that the deal really has collapsed at “two minutes to midnight”.
They spoke with Industry secretary Joran Hagglund, who confirmed that the EU decision was most likely just days away, and that with the government guarantees, the money could have started flowing around 10 days later.
We really were right on the cusp.
Bloomberg report a possible cause of the hitch
Koenigsegg Group had sought to obtain in advance all 400 million euros ($600 million) of financing approved by the European Investment Bank, while the lender planned to disburse the funds in tranches, another person said.
Perhaps the difficulty of this cashflow model is one of the critical factors in Ksegg pulling out?