Tag Archives: Victoria Klesty

Saab Automobile-Koenigsegg Deal Financing Complete

Posted on 08. Sep, 2009 by .

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Reuters and the Associated Press have recently received indications from the Swedish Government’s Joran Hagglund that Saab Automobile & Koenigsegg’s financial plans have been completed and as we already have recently found out, as there was no funding needed from the government to secure the deal.

This confirms what we heard earlier so now we just need to get the confirmation that everything is a go either by the end of October from all accounts I am hearing.

Here are the pieces from both Reuters and the AP, stating that the the financing is complete and that the deal will be ready by October 31st. This is good news for the first day of the new week!

STOCKHOLM, Sept 7 (Reuters) – Luxury sportscar maker Koenigsegg has presented the Swedish government with a new plan for financing its purchase of Saab Automobile [GM.UL], a government official said on Monday.

State Secretary Joran Hagglund told Reuters the plan no longer involved any extra loan from the Swedish state on top of guarantees for funding from the European Investment Bank. He declined to comment on the details of the plan.

“They have presented us with a plan … we will look at it from our side and decide how credible it is,” Hagglund said.

“As I understand it, they will present information on the matter in the coming days.”

(Reporting by Victoria Klesty)

Koenigsegg secures financing for Saab deal

STOCKHOLM

Koenigsegg Group AB has secured the extra financing needed to complete the acquisition of Saab Automobiles from General Motors Corp., the Swedish government said Monday.

Joran Hagglund, a senior official at Sweden’s Ministry of Enterprise, told Swedish Radio that the consortium headed by sports car maker Koenigsegg has presented a financing plan for the deal to the government.

Koenigsegg Group signed a deal to buy the troubled Swedish car brand from GM in August, but said about 3 billion kronor ($417 million) were missing before it could conclude the deal.

Around the same time, documents filed with the Swedish Companies Registration Office revealed that San Diego-based investor Mark Bishop had opted out of the deal. Bishop had initially been registered with a 22.2 percent ownership share in Koenigsegg Group.

Hagglund said the government is now reviewing the details of the financing plan, but didn’t reveal who was injecting the extra cash.

Saab spokesman Eric Geers said the company would present the new investor shortly and said it expects the acquisition to be completed before Oct. 31.

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Trollhättan, Sweden’s Future In Hands Of Saab Automobile

Posted on 29. Jan, 2009 by .

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Photo Credit: Saab History / 2007

This just in from Reuters about the people in Trollhättan, Sweden as they wait until we pass the dates of February 17th and March 31st. The town seems to be in “suspended animation” as the editor puts it until some certainty is confirmed about the future of Saab Automobile’s process to independence.

There are some questions here, while the town of Trollhättan, Sweden’s future may be in the hands of Saab Automobile, is Saab Automobile’s future also in the hands of GM even as they move towards independence or can they make a clean brake, saving themselves and their town?

One thing is for sure, Saab Automobile and the Swedish Government need to provide as much input into the next revision of business plan GM submits to the U.S. Congress on February 17th.

Here is the story below:

By Victoria Klesty

TROLLHATTAN, Sweden (Reuters) – People in Trollhattan, in the heart of Sweden’s industrial southwest, have grown used to staying abreast of the news out of Detroit. What keeps them focused on the fate of U.S. autos is fear.

This municipality is the headquarters of Saab, a money-losing carmaker owned by General Motors, itself struggling for survival. Volvo Cars, based nearby in Gothenburg and also loss-making, is owned by Ford and faces similar uncertainty.

Many of Trollhattan’s 54,300 residents either work for Saab directly or for one of its suppliers. So as General Motors has teetered, so has this entire community.

“If Saab failed, it would weigh heavily on the region. If both Volvo and Saab were to fail, it would be a big blow to the whole country,” said Saab union representative Paul Akerlund.

The carmakers are important not just for the local communities but for all of Sweden, because they are so tightly enmeshed in the wider economy. The auto industry made up almost 15 percent of Sweden’s exports in 2007.

Unemployment in the country of around 9 million currently runs at just over six percent. Western Sweden’s chamber of commerce and industry estimates 62,000 workers in the region are directly employed by vehicle-makers and their suppliers.

But spokesman Stefan Gustavsson estimates each job supports two more. That translates to almost 190,000 jobs, or more than four percent of Sweden’s workforce.

“If Saab fell, there would probably be no money for anything beyond the absolute necessities in this municipality,” said Akerlund. “Many street lights would probably have to go dark.”
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