Tag Archives: BAIC

BAIC Introduces New C71 Based On Saab 9-5 Sedan

Posted on 20. Apr, 2010 by .

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beijingsaab

Photo Credit: China Car Times

c71a

c71b

Photo Credits: Sohu

BAIC, the company that bought Saab Automobile’s old Saab 9-5 technology are planning on releasing their new version of it, known as the Beijing C71 according to China Car Times.

This news should not be a surprise, since BAIC indicated this past December that they want to start integrating their designs into the Saabs immediately.

Here’s an excerpt below:

but the real star of the line up is the Beijing C71, based on the Saab technology that Beijing Auto acquired from Saab prior to its sale to Spyker cars earlier this year. Powerplants for the above models, aside from the EV, are likely to be Saab units in turbo and naturally aspirated form. We will have to wait until press day to confirm however, but it is looking highly likely.

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GENERAL MOTORS AND SPYKER CARS REACH AGREEMENT ON SAAB

Posted on 26. Jan, 2010 by .

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News Release
spykerheader

• GM and Spyker Cars announce a binding agreement over the transfer of ownership
of Saab
• Terms are agreed and the deal is expected to close in February
• Saab’s future as an independent company is secured
• Saab will exit the orderly wind-down process
• Spyker shareholders will restructure at closure of the deal
• Swedish Government issues guarantee in favour of EIB

ZEEWOLDE, The Netherlands (26 January, 2010) – General Motors Company and Spyker Cars N.V, today confirmed the details of a binding agreement over the transfer of ownership of Saab Automobile AB of Trollhättan, Sweden. The transaction is expected to close in February and Saab Automobile will exit the orderly wind down process in line with that timetable.

The transaction will be accomplished as follows:

• Spyker acquires from Saab Automobile Investering AB, a subsidiary of General Motors (“GM”), all the issued and outstanding ordinary shares in the capital of Saab Automobile A.B. (“Saab”) for a consideration of USD 74 million (“Purchase Price”).

• The Purchase Price will be paid in two instalments. The first instalment of USD 50 million will be paid on the date of completion of the transaction, expected to take place on or before February 15, 2010 (“the Closing”). The second instalment of USD 24 million will be paid on July 15, 2010.

• The Share Purchase Agreement is subject to the execution of a EUR 400 million loan agreement between Saab and the European Investment Bank (“EIB”), guaranteed by the
Swedish Government. Today, the Swedish government announced approval of this guarantee. The guarantee is subject to approval by the European Commission, which is expected shortly.

• Upon completion of the transaction GM will retain redeemable preference shares of USD 326 million. The preference shares represent less than 1% of the voting rights in the capital of Saab. The mandatory redemption date is 31 December 2016 and Saab has the right to request voluntary redemption at any time prior to this date. The preference shares carry a dividend entitlement of 6% starting from January 2012, increasing to 12% as from July 1, 2014. The dividend over 2012 will be added to the principal, but as from January 1, 2013 the dividend is payable in cash. Should Saab have insufficient distributable reserves to pay the cash dividend it will be added to principal increased with a penalty factor.

• In order to allow Saab to operate on a stand-alone basis outside GM, Saab and GM will enter into a number of ancillary agreements. As part of the transaction, Spyker intends to negotiate the acquisition of all the outstanding shares in Saab Great Britain Limited, the UK distribution, marketing and sales company for Saab from General Motors UK Limited.

• Spyker will issue a corporate guarantee not exceeding USD 10 million for Saab’s obligations to and for the benefit of the financing company GMAC.

• Spyker will as soon as practically possible convene a general meeting of shareholders to approve the transaction. Spyker obtained irrevocable voting undertakings to vote in favour of the transaction representing the voting majority of its current shareholders.

• It is the intention to change the name of Spyker Cars N.V. at that general meeting of shareholders to Saab Spyker Automobiles N.V.

• As back-up financing, Spyker entered into a EUR 150 million Equity Credit Line Facility with GEM Global Yield Fund Limited (“GEM”) for a term of 3 years. According to this facility, Spyker may issue shares to GEM at 90 per cent of the volume weighted average price of the shares over a period of 15 trading days following a draw down notice sent to GEM by Spyker. In relation to the GEM facility, Spyker has issued to GEM share warrants in respect of 1,570,000 ordinary shares at an exercise price of EUR 4 per ordinary share. The warrants have a 5 year
term.

The object of acquisition
• In spite of media reports that certain parts have already been sold off, the object is Saab as a complete entity and going concern with all IP rights, trademarks, facilities and other infrastructures. The sale of pre 2003 Saab 9-3 and current Saab 9-5 technology to BAIC in December 2009 did not result in any part of Saab’s business being divested or devalued. On the contrary, Saab has already started the production of the new generation Saab 9-5 in Trollhättan.

• Both Saab management and Saab GB management prepared an estimated balance sheet as at 31 December 2009 for the purpose of this transaction. These estimated balance sheets are
still subject to final account closing and audit procedures.

• Spyker Cars does not yet have a balance sheet as at 31 December 2009 ready for reporting purposes. As such, it would be premature to show a pro-forma combined balance sheet for
Spyker, Saab and Saab GB as at 31 December 2009.

• Therefore Spyker only disclose an indicative combined balance sheet of Saab and Saab GB as at Closing date based on the estimated balance sheets for both entities as at 31 December
2009, adjusted for the impact of the transaction items as at Closing date.

• It should be noted that the indicative closing balance sheet is based on the latest estimated balance sheets of both entities by Saab and Saab GB management which are subject to final closing and audit procedures and therefore subject to change, and does not reflect any potential fair value or purchase price allocation adjustments. The indicative closing balance sheet should therefore not be considered as the actual closing balance sheet, but only as an indication for the assets and liabilities to be acquired at closing date.

stats

Saab’s and Saab GB’s combined revenue amounted to some EUR 1.0 billion in 2009 (2008:
EUR 1.6 billion). Earnings before interest, taxes and depreciation amounted to EUR 0.4 billion
negative in 2009 (2008: EUR 0.3 billion negative). In 2009 Saab sold 39.903 cars and
produced 20.791 cars versus selling 94.751 cars in 2008 and producing 89.086 cars.

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RESTRUCTURING AND MANAGEMENT BUY-OUT

As from Closing of the Saab acquisition, the ownership structure of Spyker will change as follows:

• Tenaci Capital B.V. (“Tenaci”), a company wholly owned by Mr. V.R. Muller has made a successful bid on Mr. V. Antonov’s current shareholding in Spyker consisting of 4.6 million ordinary shares. As agreed in 2007, when Mr V. Antonov acquired his shares in Spyker, Mr. V. Antonov will cause the transfer of the priority share to Spyker if and when he would dispose of his shareholding. A resolution to cancel the priority share will be proposed at the upcoming EGM.

• Messrs. N. Stancikas, M. Bondars and Mr. V. Antonov will retire as members of Spyker’s Supervisory Board effective as per the date of Closing.

• Tenaci will grant to Spyker two loans. One for an amount of USD 25 million towards payment of part of the Purchase Price for Saab upon completion of the transaction. A second loan for an amount of EUR 57 million for repayment of all of Spyker’s current outstanding loans to banks and other financial institutions controlled directly, or indirectly by Mr. V. Antonov. This loan mirrors the existing terms (including the lender’s right to convert EUR 9.5 million into ordinary shares at a conversion price of EUR 4.00 per share).

• The sale will be subject to customary closing conditions, including receipt of applicable regulatory, governmental and court approvals. Other terms and conditions specific to the sale are not being disclosed at this time. Victor R. Muller, Spyker’s CEO, stated: “We are very much looking forward to being part of the next chapter in Saab’s illustrious history. Saab is an iconic brand that we are honoured to shepherd. We are delighted to have secured the jobs and livelihoods of thousands of loyal Saab employees, suppliers and dealers and to have given reassurance to the 1.5 million Saab drivers and enthusiasts around the world. It was breathtaking to see so much support from the global Saab community over the last months which not only shows the strength of the brand but also helped us in our relentless determination to get the deal done.”

“Spyker Cars will provide Saab with the backing required to compete as a competitive global brand along with an entrepreneurial leadership team sensitive to the uniqueness, heritage and individuality of the Saab brand. I would like to extend my sincere gratitude to Vladimir Antonov for his formidable support during the past two years. His contribution has allowed Spyker to get to the point that this
transaction was made possible. I also want to extend my gratitude to Messrs. Stancikas and Bondars as Members of the Supervisory Board. They have made very valuable contributions to our company
during their respective terms.”

“Finally I would like to thank the Swedish Government for its constant support for our efforts culminating in granting the Guarantee in favour of the European Investment Bank today for an EUR
400 Million loan to Saab which we hope to secure in the coming weeks.”

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Jan Åke Jonsson, CEO of Saab Automobile AB said: “It has been a challenging 15 months for Saab but our global organization has shown a fighting spirit that will serve us well going forward. The
agreement with Spyker Cars has secured Saab’s future and will enable us to maximize the brand’s potential through an exciting new product line-up with a distinctly Saab character.”

“Today’s news is great for Saab’s customers, dealers, suppliers and employees around the globe. The level of passion and support shown to Saab over recent months has been remarkable and I would like
to take this opportunity to thank all of those people who continued to believe that Saab deserved a future. Now we aim to get back to the execution of our business plan and with the continued support
of our employees and business partners I am confident we will succeed.”

Nick Reilly, President GM Europe, added: “As a responsible corporate citizen in Europe, and throughout the entire period, GM has always had the hope to find a positive solution for Saab that
would avoid a wind-down of the brand. We have worked very hard with many parties, including governments and investors, and I’m very pleased that we could come to such a positive conclusion
that preserves jobs in Sweden and elsewhere. GM will continue to support Saab and Spyker Cars on their way forward.”

-Ends-

Note for the media, not for publication
For further media information, please contact:

Saab Automobile Press Office
Tel: +46 (0)520 279797

Spyker Cars Europe, PFPR Communications:
Mike Stainton
T: +44 (0) 1622 77 66 87
M: +44 (0) 7739 891 040
E: mike.stainton@pfpr.com

Tom Housley
T: +44 (0) 1622 766510
M: +44 (0) 7746 646 356
E: thomas.housley@pfpr.com

Peter Rawlinson
T: +44 (0) 1622 691 361
M: +44 (0) 7971 472 715
E: peter.rawlinson@pfpr.com

Spyker Cars North America, PCG Campbell:
Shane Smith
T: +1 310 224 4965
M: +1 310 224 4965
E: ssmith@pcgcampbell.com

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Saab History Learns More About BAIC Deal

Posted on 15. Dec, 2009 by .

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Saab History has learned more details about the BAIC deal to buy the technology from the old 9-3, acquire the MY06-MY09 9-5 Sedan & SportCombi models as well as powertrain.

The first come from an insider that has indicated that in terms of the 9-3, it was technology from the MY05 model year and not 04 as mentioned below.

The second comes from TTELA once again with their own details below.

– We have talked to our potential buyers who think this is a good approach, “says Mats Fägerhag, which was the main person at Saab to bring together the deal with the Chinese.

Work has been going on since Week 37 and from the beginning it was conceived as a joint venture with Koenigsegg Group. When the group withdrew [from the Saab deal] Saab and BAIC continued the discussions, which have now led to this Agreement.

Purchase rights

The agreement means that BAIC will buy production tools to the old Saab 9-5, and technology from both 9-5 and 9-3.

– You buy drawings and technical documents with rights to build cars in China, says Fägerhag, and continues:

– But they will not copy the cars. They should make their own cars, adapted for the local market, based on 9-5 and 9-3 of the model year -04.
[…]

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Swedish Government Wants Additional Assurances On Koenigsegg & BAIC Agreement

Posted on 01. Oct, 2009 by .

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The Swedish Newspaper, Sydsvenskan reports that the Swedish Government wants to get some additional assurances between Koenigsegg & BAIC beyond their MOU agreement before they guarantee the EIB loan.

Here is the piece below, loosely translated by Google.

Swedish Government breathe some optimism about Saab’s chances of getting EIB loans, but Koenigsegg Group must develop closer ties with Chinese BAIC that not everything will fall.

GOTHENBURG. Joran Hagglund, State Secretary at the Ministry of Industry, has in recent days have not received any feedback from the European Investment Bank (EIB) on how to make themselves available for Saab Automobile loan of over four billion.

Should the EIB leaning toward saying no require immediate information, he believes.
– A ‘no’ means any kind of change. If they say yes, it is nothing strange, “he said.

TT: Do you expect a yes?
– You have a loan application and a process to properly granted and we have not counted on anything else. Then we have our process of negotiating government guarantees, “he says.

Joran Hagglund notes that Saab’s business plan is better since it has been a private investor. He then aimed at the Saab’s potential new owners Koenigsegg Group has signed a letter of intent, known as a MOU with the Chinese Beijing Auto, BAIC, which will inject the money missing.

But it takes more.
– The fact that there is an MOU with a Chinese investor is not enough. There must be more ready agreement that shows that money really will.

Before that, the government will not go to the commission and make a so-called notification formally launch the Commission’s evaluation. Without authorization from there, no loan money is paid. A clear agreement with BAIC is essential also for the State to be able to provide the necessary loan guarantees.

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BAIC Visits Saab Factory To See Technology & Engineering

Posted on 24. Sep, 2009 by .

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Trollhattan’s TTELA indicates that BAIC‘s CEO, Wang Dazong has visited the Saab Factory this week to see the technology and the engineering.

During this visit, Dazong has indicated that his company wants something in return for their investment stake with Koenigsegg Group. This “something in return”, now appears to be technology, engineering and intellectual property rights.

So the question here is how will this interest in Saab technology & engineering differ from the program that Saab had with GM? Why can’t BAIC just get a tiny fraction of all car sales in return for their financial support?

Below is the TTELA report loosely translated from Google Translate.

BAIC examines Saab Technology
Trollhättan Employees from China Beijing Auto has been at Saab in Trollhattan in once a week. On Thursday was CEO there.
Purpose: See if there is technology to buy the company’s manufacturing operations in China.

– They are so far very pleased with what they’ve seen, “says Kjell ac Bergstrom, CEO of Saab’s subsidiary Powertrain Sweden, to TT.

Beijing Automotive Industry, which shortened BAIC, the Chinese company to invest money, probably billions, of Koenigsegg Group is to buy the Saab Automobile from General Motors.

The company has promised a minority stake in Koenigsegg Group, but to get the letter of intent to mature into a definitive agreement with spices Koenigsegg Saab Technologies.

– BAIC is prepared to invest what is needed, but want to get something in return. They have not gone into this just because it’s fun to support Trollhättan, “says Kjell ac Bergström.

Want to buy everything

He confirms that BAIC, Geely Automobile and Chinese, were among the 20 different stakeholders in the spring, wanted to buy the entire Saab. The first time the company representatives were visiting in April.

This time, BAIC employee looked closely at what makes Powertrain, namely powertrains including engines, but they have also been examined including the production and marketing department.

– Most interested are the intellectual property rights. They want to see what Saab has for technology that can be used in their own production, “says Kjell ac Bergström.

CEO Visit

On the way home from the Motor Show in Frankfurt was CEO Wang Dazong to Trollhattan on Thursday to coordinate how the work goes.

BAIC, which is owned by Beijing Municipality, currently produces primarily vehicles on behalf of established brands as Hyundai and Mercedes. The goal is to grow significantly.

– In order to be able to develop its own brand, the access rights from a manufacturer like Saab, who can sell the licenses, “says Kjell ac Bergström.

GM and Saab are still negotiating about the technology Saab owns. It’s just that the Chinese will see. In addition, Saab has taken a lot of precautions.

– They may not take any photos, nor make any copies, “says Kjell ac Bergström.

He is, like, the management of Saab and Koenigsegg Group, warmly welcoming BAIC.

– The company feels very stable, with a leadership that has experience in Western automotive businesses, “he says.

TT

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Saab History Learns That BAIC Plans To Continue Old Saab 9-5 Production In Beijing, China

Posted on 21. Sep, 2009 by .

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Saab History has learned at the recent 2009 Frankfurt Auto Show that BAIC, the ones that just signed a memorandum of understanding with Koenigsegg, plan on continuing the old Saab 9-5 production in Beijing, China once the all new Saab 9-5 production begins in Trollhattan, Sweden.

Although the old 9-5 Sedan ended production during the first week in July and it’s 9-5 SportCombi counterpart will cease production in March of 2010, that production has been indicated to be continuing on in China at some point.

While all of Saab Automobile’s new products will be built in Trollhättan, Sweden, their old 9-5 now in its 12th year, will continue on for presumably the Chinese only-market. Initially learning about this plan, I was not alarmed as much as the news that came recently from TTELA who spoke to BAIC’s CEO Wang Dazong, where he indicated that he not only wants production, but technology and intellectual property rights from Saab Automobile as well.

I think that recycling a good product is one thing and keeping it alive is a nice idea for a particular market, (I wish they could have done this with the old C900), but wanting Saab’s technology and intellectual rights sounds exactly like what hurt Saab with GM all of these years and I don’t want that repeated with BAIC.

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Production Concept