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  • Official: GM And Koenigsegg Reach Agreement Over Saab

    Official: GM And Koenigsegg Reach Agreement Over Saab August 18th, 2009 By Viknesh Vijayenthiran's avatar Viknesh Vijayenthiran, Author, August 18th, 2009 Viknesh Vijayenthiran 2 Comments

    Official: GM And Koenigsegg Reach Agreement Over Saab

    General Motors and Koenigsegg Group AB, a consortium led by supercar manufacturer Koenigsegg, have officially reached an agreement over the sale of Saab after nearly two decades of American ownership. GM has confirmed today that it has signed a stock purchase agreement with Koenigsegg Group AB regarding the sale of 100% of the shares of Saab.

    The deal is expected to conclude in the next months and will then secure Saab’s future, with the Swedish automaker set to exit legal reorganization shortly. The stock purchase agreement will be subject to agreed closing conditions, namely, the guarantee of funding commitments from the Swedish...

    General Motors and Koenigsegg Group AB, a consortium led by supercar manufacturer Koenigsegg, have officially reached an agreement over the sale of Saab after nearly two decades of American ownership. GM has confirmed today that it has signed a stock purchase agreement with Koenigsegg Group AB regarding the sale of 100% of the shares of Saab. The deal is expected to conclude in the next months and will then secure Saab’s future, with the Swedish automaker set to exit legal reorganization shortly. The stock purchase agreement will be subject to agreed closing conditions, namely, the guarantee of funding commitments from the Swedish government, as well as transitional assistance from GM. As part of the proposed transaction, GM and Saab will continue to share technology and services during a defined time period, all managed through licenses and service agreements. Koenigsegg co-owner Baard Eker has previously stated that his company has several good solutions to bring into Saab. Strong words coming from a man whose company has less than 50 employees and turns out only a handful of $1 million supercars each year, but with the new funding Saab should be able to successfully launch three new models over the next 18 months and hopefully see the company become an innovator of technology like it had been in the past. The three new models planned include the recently revealed 9-3X as well as the new 9-4X and aforementioned 9-5. Koenigsegg, meanwhile, will reportedly benefit from Saab’s existing production facilities and plans to use the capacity for its upcoming Quant electric supercar. Last year Saab saw its global sales drop 25.5% to just 93,338 units and 2009 is expected to be even lower. The struggling automaker had originally filed for reorganization under Swedish Law on February 20, 2009. Read More

  • Obama signs $2 billion emergency funding for 'Clunker' program

    Obama signs $2 billion emergency funding for 'Clunker' program August 7th, 2009 ByRalph Hanson Ralph Hanson, Author, August 7th, 2009 Ralph Hanson 8 Comments

    Obama signs $2 billion emergency funding for 'Clunker' program That was quick. Just a month after President Obama signed in the $1 billion ‘cash for clunkers’ bill, and less than a week of it running, the program has already run out of money once and received approval from both the House and Senate for another $2 billion. With Obama's signature today, the money is official, and available to buyers that haven't yet cashed in their clunker.

    The additional funds come less than a week after confusing and conflicting messages about the program's possible termination from the White House and the Department of Transportation. The latest action by the Senate makes it clear that the government wants... That was quick. Just a month after President Obama signed in the $1 billion ‘cash for clunkers’ bill, and less than a week of it running, the program has already run out of money once and received approval from both the House and Senate for another $2 billion. With Obama's signature today, the money is official, and available to buyers that haven't yet cashed in their clunker. The additional funds come less than a week after confusing and conflicting messages about the program's possible termination from the White House and the Department of Transportation. The latest action by the Senate makes it clear that the government wants to see the highly popular program continue. The money will be taken from part of the $787 billion stimulus package approved earlier this year. Originally expected to last through the next several months at least, Ray La Hood, U.S. Transportation Secretary told Automotive News that the additional funding will extend the temporary program through Labor Day and spur about 500,000 new auto sales on top of the 250,000 already completed. Under the original program, owners of old cars that cannot achieve above 18mpg in their combined cycles were eligible for a $3,500 voucher from the government towards the purchase of a new car that is at least 4mpg more efficient. Up to $4,500 is available to those who improve their gas mileage figures by 10mpg or more. Trucks use a different system, where the new truck being purchased has to achieve at least 18mpg and also be 2mpg more efficient than the traded in vehicle. This gets owners the $3,500 voucher, while those improving their mileage by 5mpg get the full $4,500. Read More

  • President Obama signs in Cash-for-Guzzlers bill

    President Obama signs in Cash-for-Guzzlers bill June 24th, 2009 By Viknesh Vijayenthiran Viknesh Vijayenthiran, Author, June 24th, 2009 Viknesh Vijayenthiran 10 Comments

    President Obama signs in Cash-for-Guzzlers bill The Cash-for-Guzzlers bill is just one of the incentives the government is trying to implement to bring the U.S. auto industry back to its pre-recession levels. Recently, the Cash-for-Guzzlers scheme garnered approval of both House and Senate negotiation teams, and now it has passed into law with the signing today of the bill by President Barack Obama. The bill will now pass into a 30-day review period in which the federal government will prepare regulations for the program.

    The approval came as part of a larger $106 billion wartime spending proposal - out of this amount, just $1 billion was set aside for the Cash-for-Guzzlers program, or... The Cash-for-Guzzlers bill is just one of the incentives the government is trying to implement to bring the U.S. auto industry back to its pre-recession levels. Recently, the Cash-for-Guzzlers scheme garnered approval of both House and Senate negotiation teams, and now it has passed into law with the signing today of the bill by President Barack Obama. The bill will now pass into a 30-day review period in which the federal government will prepare regulations for the program. The approval came as part of a larger $106 billion wartime spending proposal - out of this amount, just $1 billion was set aside for the Cash-for-Guzzlers program, or less than 1%. In reality, the full cost of the program is expected to be around $4 billion, but the $1 billion allocated should be enough to run the program until the end of September this year, reports Automotive News. The stipulations in the program are largely the same as that being proposed when the program was first scrapped in the U.S. Senate for giving Detroit too much of an advantage over foreign car manufacturers with local production facilities. The recently agreed upon scheme carries on the same proposal for vouchers of up to $4,500 for new car buyers who exchange gas-guzzlers for gas-sippers. The new program will only affect owners of old cars that cannot achieve above 18mpg in their combined cycles. If these owners swap their cars for a new car that is at least 4mpg more efficient, they will be eligible to receive a $3,500 voucher from the government. The full $4,500 is only available to those who improve their gas mileage figures by 10mpg or more. Trucks use a different system, where the new truck that is being purchased must achieve at least 18mpg and also be 2mpg more efficient than their current vehicle. This would garner owners the $3,500 voucher, while those improving their mileage by 5mpg would get the full $4,500. Combined with new tax breaks from the government that eliminate local and state taxes, the government is significantly absorbing the costs of new cars to keep the auto industry viable through the recession. Read More

  • Saab buyer to be revealed this week, most likely Koenigsegg

    Saab buyer to be revealed this week, most likely Koenigsegg June 14th, 2009 ByKenneth Hall Kenneth Hall, Author, June 14th, 2009 Kenneth Hall 13 Comments

    Saab buyer to be revealed this week, most likely Koenigsegg The ongoing tale of Saab's sale may be drawing to a close, as early reports out of Sweden today have General Motors and Swedish supercar maker Koenigsegg, along with a group of Norwegian investors, agreeing to the deal in a letter of intent. GM confirmed in its February viability plan that it would no longer supply Saab with funding and that the Swedish company would become an independent business as of January 1, 2010.

    An official announcement of the sale is expected this week, Saab officials revealed to Automotive News. In its own turnaround plan presented to creditors, Saab confirmed that it is seeking to write-off roughly three quarters... The ongoing tale of Saab's sale may be drawing to a close, as early reports out of Sweden today have General Motors and Swedish supercar maker Koenigsegg, along with a group of Norwegian investors, agreeing to the deal in a letter of intent. GM confirmed in its February viability plan that it would no longer supply Saab with funding and that the Swedish company would become an independent business as of January 1, 2010. An official announcement of the sale is expected this week, Saab officials revealed to Automotive News. In its own turnaround plan presented to creditors, Saab confirmed that it is seeking to write-off roughly three quarters of its non-prioritized debt, aiming for positive cashflow by 2011. If the decision to sell to the Koenigsegg-led group goes through, don't expect final details to emerge for another month or more, however, as final negotiations on the details of the deal still have to be hammered out. Saab spokeswoman, Gunilla Gustavs, also revealed that there were three remaining bidders left for the company and the sale process would be completed soon. "I think that during this week, chances are good. It could be anytime now," she said. Koenigsegg, meanwhile, says it has what it takes to save Saab. Koenigsegg co-owner, Baard Eker, said over the weekend that his company has several good solutions to bring into Saab. Strong words coming from a man whose company has less than 50 employees and turns out only a handful of $1 million supercars each year. However, thanks to 28 billion Swedish kronor (approximately $3.23 billion) in loans and loan guarantees from the Swedish government, plus help from private investors, Saab will be able to operate as usual for the foreseeable future but the company is still predicting a loss of more than $300 million for the current year. Saab lost about $340 million in 2008, according to documents filed with the Swedish court that granted the company a stay of execution. The injection of funding will be used to help launch three new models over the next 18 months and hopefully see the company become an innovator of technology like it had been in the past. Some important automotive technologies pioneered by Saab include headlamp wipers and washers, impact-absorbing bumpers, wastegate-operated turbocharger systems, and one of the world’s first 16-valve turbocharged engines. The three new models planned include the recently revealed 9-3X as well as the new 9-4X and 9-5, all of which are desperately needed. Last year Saab saw its global sales drop 25.5% to just 93,338 units and 2009 is expected to be even lower.2010 Saab 9-3XSaab's Jan-Ake Jonsson talks about the company's reorganization Read More

  • House and Senate agree on Cash for Clunkers bill, mileage requirements revealed

    House and Senate agree on Cash for Clunkers bill, mileage requirements revealed June 12th, 2009 ByJeremy Weber Jeremy Weber, Author, June 12th, 2009 Jeremy Weber 5 Comments

    House and Senate agree on Cash for Clunkers bill, mileage requirements revealed The Cash for Clunkers bill is just one of the incentives the government is trying to implement to bring the U.S. auto industry back to its pre-recession levels. Now, the Cash for Clunkers scheme has garnered the approval of both House and Senate negotiation teams, with the two sides reaching an agreement on Thursday.

    The approval came as part of a larger $106 billion wartime spending proposal - out of this amount, just $1 billion was set aside for the Cash for Clunkers program, or less than 1%. In reality, the full cost of the program is expected to be around $4 billion, but the $1 billion allocated should be enough to run the program... The Cash for Clunkers bill is just one of the incentives the government is trying to implement to bring the U.S. auto industry back to its pre-recession levels. Now, the Cash for Clunkers scheme has garnered the approval of both House and Senate negotiation teams, with the two sides reaching an agreement on Thursday. The approval came as part of a larger $106 billion wartime spending proposal - out of this amount, just $1 billion was set aside for the Cash for Clunkers program, or less than 1%. In reality, the full cost of the program is expected to be around $4 billion, but the $1 billion allocated should be enough to run the program until the end of September this year, reports The Detroit News. The stipulations in the program are largely the same as that being proposed when the program was first scrapped in the U.S. Senate for giving Detroit too much of an advantage over foreign car manufacturers with local production facilities. The recently agreed upon scheme carries on the same proposal for vouchers of up to $4,500 for new car buyers who exchange gas-guzzlers for gas-sippers. The new program will only affect owners of old cars that cannot achieve above 18mpg in their combined cycles. If these owners swap their cars for a new car that is at least 4mpg more efficient, they will be eligible to receive a $3,500 voucher from the government. The full $4,500 is only available to those who improve their gas mileage figures by 10mpg or more. Trucks use a different system, where the new truck that is being purchased must achieve at least 18mpg and also be 2mpg more efficient than their current vehicle. This would garner owners the $3,500 voucher, while those improving their mileage by 5mpg would get the full $4,500. Combined with new tax breaks from the government that eliminate local and state taxes, the government is significantly absorbing the costs of new cars to keep the auto industry viable through the recession. Read More

  • White House promises no more bailouts for Detroit 3

    White House promises no more bailouts for Detroit 3 June 11th, 2009 ByJames Martinez James Martinez, Author, June 11th, 2009 James Martinez 3 Comments

    White House promises no more bailouts for Detroit 3 With accusations and hyperbole that the U.S. government's bailout of the Detroit 3 is a clear step towards socialism, President Barack Obama's automotive task force that has been charged with overseeing the restructuring of GM and Chrysler has promised that the government will not be putting any more money into either automaker.

    In total, the U.S. government has given automakers and suppliers close to $80 billion, and while the government claims that this money has given the companies a good chance to succeed while preserving American jobs, there is also the question of whether taxpayers should have to foot the bill for private enterprises.
    ... With accusations and hyperbole that the U.S. government's bailout of the Detroit 3 is a clear step towards socialism, President Barack Obama's automotive task force that has been charged with overseeing the restructuring of GM and Chrysler has promised that the government will not be putting any more money into either automaker. In total, the U.S. government has given automakers and suppliers close to $80 billion, and while the government claims that this money has given the companies a good chance to succeed while preserving American jobs, there is also the question of whether taxpayers should have to foot the bill for private enterprises. The government defended its decision, stating that the public had a reasonable chance of getting a return on its investment. Furthermore, even if GM or Chrysler somehow manage to find themselves bankrupt again, the federal government believes that the bailout given will be the last money the two automakers will require - although it won't rule out the possibility of more bailouts in extremely extenuating circumstances. As a major stakeholder in GM and Chrysler, the federal government finds itself in the tricky position of not wanting to run the business but also keen to see it succeed. As for how long the government plans to remain a major shareholder, Ron Bloom, a senior adviser to the automotive task force explained to the Associated Press that the situation will depend on the financial markets. Despite obvious opposition from a number of angles, the White House has implied that without the bailout of GM and Chrysler the ripple effect of a complete bankruptcy of these two companies would have had profoundly negative effects on the U.S. economy. Read More

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