Press Release: Saab Automobile Enters Agreement With Hawtai Motor Group On Strategic Partnership

Trollhättan, Sweden: Following yesterday’s announcement that Spyker Cars N.V. (Spyker) secured its short term funding, Spyker announces today that Spyker and Saab Automobile AB (Saab Automobile) signed an agreement with Hawtai Motor Group Company Limited (Hawtai). This agreement conditionally secures medium term funding and includes financing in the form of subscription agreements in the amount of EUR 150 million as well as a strategic alliance for China including joint ventures on manufacturing, technology and distribution.

  • Spyker, Saab Automobile AB and Hawtai Motor Group sign agreement on strategic alliances partnership with respect to manufacturing, technology and distribution in China, subject to definitive transaction documentation
  • Spyker will enter into a subscription agreement with Hawtai in the total amount of EUR 120 million for in aggregate 24.6 million shares as well as a EUR 30 million convertible loan, subject to definitive transaction documentation and certain conditions

As a part of the transaction Hawtai will invest EUR 120 million for up to a maximum of a 29.9 percent equity stake in Spyker on a fully diluted basis. The remaining EUR 30 million will be in the form of a convertible loan agreement in the amount of EUR 30 million with a 6 month maturity, an interest rate of 7% per annum and a conversion price of EUR 4.88 per share. The transactions are subject to agreement on definitive transaction documents and certain conditions, which include consents from certain Chinese governmental agencies, the European Investment Bank and the Swedish National Debt Office. As part of the transaction, Tenaci Capital will convert EUR 42 million of its current loan to Spyker into share capital in Spyker at EUR 4.88 per share, thereby substantially reducing Spyker’s interest burden.

Victor Muller, CEO of Spyker and Chairman of Saab Automobile, said: “The partnership with Hawtai allows Saab Automobile on the one hand to continue executing its business plan since we secured the required mid-term financing subject to meeting certain conditions, whilst on the other hand it allows Saab Automobile to enter the Chinese car market and establish a technology partnership with a strong Chinese manufacturer.

“We expect that Saab’s unique brand values based on its aviation heritage, Scandinavian origins and innovation-driven character will do very well in the Chinese market. Our driver-oriented vehicles appeal to a whole new group of independently thinking customers who appreciate Saab’s advanced designs, safety and responsible performance.

“With Hawtai’s clean diesel engine technologies and production capacity, and its ambitious development programs, we have found the right partner to develop the Saab business and build a solid relationship.”

Mr Richard Zhang, Vice President of Hawtai, said: “This is a great day for our relatively young company which was founded ten years ago. The partnership with the iconic Saab brand will give us access to innovative technologies and an international network which would have taken us decades to build. On the other hand we have a very strong Chinese manufacturing and distribution infrastructure which we will make available to our new partner Saab Automobile. Our participation in Spyker, Saab’s parent company, demonstrates our commitment to the future of Saab Automobile as a premium European car manufacturer.”

Founded in 2000, Hawtai is a China-based privately-owned automotive company with its headquarters and R&D centre located in Beijing, and two production facilities located in Ordos, Inner Mongolia and Rongcheng, Shandong Province. Hawtai currently has an annual production capacity of 350,000 vehicles, 300,000 clean diesel engines and 450,000 automatic transmissions. By 2015, Hawtai aims to have raised this capacity to 1 million vehicles, 1 million engines and 1 million automatic transmissions, and to have established itself as a global leading automotive company.

 

Note to Editors:

Saab, or Svenska Aeroplan Aktiebolaget (Swedish Aircraft Company), was founded in 1937 as an aircraft manufacturer and revealed its first prototype passenger car 10 years later after the formation of the Saab Car Division. In 1990, Saab Automobile AB was created as a separate company, jointly owned by the Saab Scania Group and General Motors, and became a wholly-owned GM subsidiary in 2000. In February 2010, Spyker Cars N.V. of the Netherlands, acquired the company from GM as an independently-run business.

Saab cars reflect the brand’s unique Scandinavian design ethic, which is fused with its aircraft engineering heritage. The company is a global premium car maker with a distinguished history of innovation. It is recognized for its pioneering role in turbocharging, as well as occupant safety and the introduction of flex-fuel technology through Saab BioPower. Saab Automobile AB currently employs approximately 3,800 staff in Sweden, where it operates world-class production and technical development facilities at its headquarters in Trollhättan, 70 km north of Gothenburg.

CONTACT:

Saab Automobile Press Office

Tel: +46 (0)520 279797

Sven van Dijkman
Member

YES!

(same comment as when the GM – Spyker deal was closed)!

Peter, Sweden
Member

Hawtai Up!

Red J
Member

From what I read, it seems like Saab will regain access to the VM V6 Diesel. Which is not bad.

RS
Member

Understatement of the year 🙂

Wittendorff
Member

Good news, SAAB and HAWTAI up.

How do you put pictures in your profiles??

Red J
Member

Go to gravatar.com, they will tell you how.

gannet
Member

Sounds really good.

VM has done excellent job.

It will bring needed longer money and it opens doors to chineese market which is crutial to produce (and mainly sell) that amount of cars that SAAB needs to life happily ever after (100.000-200.000 p.a) 🙂

Bravada from GMI
Member

It’s time to party with some HawtAis!

SaabKen
Member

Everybody Wang Chung tonight !!! 😀

RS
Member

Well done VM! Maybe Saab can now lure a really good CFO onboard as we’re back in the ‘fully funded’ mode.
And the naysayers were wrong again… The next time somebody writes that’s Saab is going under who’s going to believe them 😉

bpsorrel
Member

Looks good… a cautious Hawtai Up from me! 🙂

KaiC
Member

Good news! I`like to see a young Chinese car company as a partner with SAAB .

Kikaluka
Member

VM does it again. Impressive.

Troels, Denmark
Member

You have done it again VM and JAJ ! 🙂
Congratulations to You and Saab!

900 classic cab
Guest

In someone else’s hands this company had been dead for some time. Trully impressive. Glad to see people at SAAB doing their best … once again.

DUTCH900C
Member

Victor Muller: CONGRATULATIONS for yor exellent job!!

OddJob
Member

Now wait a minute, EIB, NDA and the Government have’nt approved yet (just kidding)

JH
Member

Fantastic news! 😀
All the naysayers was wrong – again! 😀

Osama Dajani
Member

Good pieces of news,

– How would the new strategy be implemented from the point of view Mckinsey’s 7Ss framework?
– What’s the future of the “Quirky” brand?
– What’s the latest update for the SAAB 9-3 (New Generation)?
– What’s the future of the other products of SAAB: SAAB 9-4 X, 9-5, 9-5 SC, etc…?

Let’s hope for the best,

ivo 71
Member

You really are the little sunshine, aren’t you? Sure, your questions are legitimate but how about giving it a litle time? Keep in mind that without this (or a similar) deal there would be no Saab and therefore you would have no questions to pose about the 9-3 NG or about McKinsey’s 7S framework.

How about we do the ‘yessss, we are still alive….’ party first?

😉

Ivo

WooDz
Member

Can anyone supply maybe a breakdown, visual or written, of company ownership. Tenaci, V.Antonov, Hawtai and GM’s Perferred shares (if they actually count).

A good day in Saabland today….

Red J
Member

WooDz
In the 2010 Annual Report pages 148/149 there is a very good visual scheme of the company ownership.

BoeBoe
Member
That was a good overview 😉 But Spyker has issued so many new shares this year that it is not completely accurate anymore. Shareholdings have diluted a lot and when Hawtai get their shares and Tenaci converts is loan of 42 million into shares everything will be different again. Also Gemini will get a lot of new shares. When the annual report was written there were 17 million outstanding shares at the moment there are 25 million or so and in the coming days a lot of new shares will be issued to various parties. When shares are issued you… Read more »
Red J
Member

Yes the percentages may be wrong, but it is the first time that (at least) I see a real who is who at Spyker Cars NV. 😉
Maybe if you can deliver the right percentages, we can create a up-to-date diagram.

ivo 71
Member

Have a look here:

Link repaired by RedJ 🙂

Ivo

Ken H
Member

Cool, and I heard the next 9-3 gonna be really hawt!

Ronnie_Rad
Member

Saab’s got itself a hottie!!!!

SaabKen
Member
Ronnie_Rad
Member

LOL

and i never realized how ugly that is until i looked at that picture….definitely not a hottie :/

but the girl is 😀

Ronnie_Rad
Member

*that CAR is

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