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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

  • GM gets 5 new board members appointed by U.S., Canadian governments

    GM gets 5 new board members appointed by U.S., Canadian governments July 25th, 2009 ByRalph Hanson Ralph Hanson, Author, July 25th, 2009 Ralph Hanson 1 Comment

    GM gets 5 new board members appointed by U.S., Canadian governments General Motors' recent bankruptcy proceedings have seen the company transformed as it leaves behind failing assets, and according to the company these changes have also been reflected through a restructured board of directors. Five new members have been added to the board following the bankruptcy, with major stakeholders being given discretion to hire new board members depending on the size of their stake.

    For the U.S. Treasury, which now owns roughly 68% of GM, the government department was able to select 4 of the new 5 board members. The Treasury appointed Daniel F. Akerson, David Bonderman, Robert D. Krebbs and Patricia Russo as their... General Motors' recent bankruptcy proceedings have seen the company transformed as it leaves behind failing assets, and according to the company these changes have also been reflected through a restructured board of directors. Five new members have been added to the board following the bankruptcy, with major stakeholders being given discretion to hire new board members depending on the size of their stake. For the U.S. Treasury, which now owns roughly 68% of GM, the government department was able to select 4 of the new 5 board members. The Treasury appointed Daniel F. Akerson, David Bonderman, Robert D. Krebbs and Patricia Russo as their designated board members for the new company. Akerson is a director at the Carlyle Group, a private equity firm based in Washington D.C. that is ranked as the world's largest. Meanwhile, the Canadian government also has a stake in the new GM, and although it is not as sizable as the U.S. Treasury's, its 11.7% stake affords the Canadians a spot on the board to designate someone of their own choosing, which in this case was Carol Stephenson, a business school dean and director of ING Canada. According to GM, there will be a total of 13 directors on the board, including the 5 new additions that will join current board members such as CEO Fritz Henderson and Kent Kresa. Each of the non-GM executives will be paid $200,000 annually for their services. Read More

  • Chrysler unveils ‘Double CA$H For Your Old Car’ incentive program

    Chrysler unveils ‘Double CA$H For Your Old Car’ incentive program July 22nd, 2009 ByJames Martinez James Martinez, Author, July 22nd, 2009 James Martinez 2 Comments

    Chrysler unveils ‘Double CA$H For Your Old Car’ incentive program Chrysler today announced a new incentive program dubbed ‘Double CA$H for Your Old Car’ that can save consumers up to $9,000 toward the purchase of a new Chrysler, Jeep or Dodge vehicle. Under the program, everyone shopping for a new car or truck qualifies for an incentive of up to $4,500 – even if they don’t have a vehicle that qualifies under the U.S. government’s own scrappage scheme.

    Starting on July 23, Chrysler will offer up to $4,500 in cash or 0% financing for 72 months through GMAC Financial Services on most 2009 model vehicles.

    Coinciding with the launch of the new incentive program is the start of... Chrysler today announced a new incentive program dubbed ‘Double CA$H for Your Old Car’ that can save consumers up to $9,000 toward the purchase of a new Chrysler, Jeep or Dodge vehicle. Under the program, everyone shopping for a new car or truck qualifies for an incentive of up to $4,500 – even if they don’t have a vehicle that qualifies under the U.S. government’s own scrappage scheme. Starting on July 23, Chrysler will offer up to $4,500 in cash or 0% financing for 72 months through GMAC Financial Services on most 2009 model vehicles. Coinciding with the launch of the new incentive program is the start of the U.S. government’s Car Allowance Rebate Systems (CARS) scheme, more commonly known as ‘cash for clunkers’. The CARS program offers a government credit of either $3,500 or $4,500 for trading in an inefficient vehicle that is not more than 25 years old for the purchase of a new vehicle. The amount of the credit is determined based on the fuel-economy improvement between the turn-in vehicle and the new vehicle purchased. Chrysler’s new incentive program will run right up until August 31. Read More

  • Bankruptcy court approves GM asset sale

    Bankruptcy court approves GM asset sale July 6th, 2009 ByJames Martinez James Martinez, Author, July 6th, 2009 James Martinez 1 Comment

    Bankruptcy court approves GM asset sale General Motors is one step closer to emerging from bankruptcy, with a judge on Sunday approving an asset sale to allow the most profitable assets to exit bankruptcy protection under government ownership. Judge Robert Gerber of the U.S. bankruptcy court in Manhattan said the sale would "prevent the death of the patient on the operating table."

    Gerber has issued a four-day stay of the order approving the sale, which should allow it to close as early as Thursday.

    The sale will include substantially all of GM’s assets to the newly established NGMCO Inc., an entity funded by the U.S. Department of the Treasury. Once the sale is... General Motors is one step closer to emerging from bankruptcy, with a judge on Sunday approving an asset sale to allow the most profitable assets to exit bankruptcy protection under government ownership. Judge Robert Gerber of the U.S. bankruptcy court in Manhattan said the sale would "prevent the death of the patient on the operating table." Gerber has issued a four-day stay of the order approving the sale, which should allow it to close as early as Thursday. The sale will include substantially all of GM’s assets to the newly established NGMCO Inc., an entity funded by the U.S. Department of the Treasury. Once the sale is completed, NGMCO Inc. change its name to ‘General Motors Company’ and continue to operate under GM's historic corporate and sub brands. The new company, with Fritz Henderson as CEO, will acquire GM's strongest operations and will have a competitive operating cost structure, partly as a result of recent agreements with the United Auto Workers (UAW) and Canadian Auto Workers (CAW). Furthermore, the new General Motors Company will have lower debt and a stronger balance sheet, which when combined with a lower break-even point, will allow it to reduce its risk and operate profitably at much lower volume levels. Importantly, GM's subsidiaries outside the U.S., such as Holden and Daewoo, will be acquired by the new company and are expected to continue to operate without interruption. The company shares will be broken down into a 60.8% stake owned by the U.S. Department of the Treasury, a 17.5% stake owned by the UAW Retiree Medical Benefits Trust, a 11.7% stake owned by the Canadian and Ontario governments, and finally a 10% stake that will consist of the old GM’s bondholders. Additionally, the old GM and the UAW Retiree Medical Benefits Trust will hold warrants that are exercisable for 15% and 2.5% of the interests in the new GM, respectively. Once the restructured General Motors Company is fully up and running, shares in the company may be offered via an initial public offering conducted by the government. This is expected to take place sometime next year, however, no official confirmation has been given yet. 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

  • Tax break on new cars extends to all 50 states

    Tax break on new cars extends to all 50 states June 11th, 2009 ByRalph Hanson Ralph Hanson, Author, June 11th, 2009 Ralph Hanson 0 Comments

    Tax break on new cars extends to all 50 states No one at this point doubts the country's, or the world's, economic woes, most especially those within the car industry. So the announcement today that the U.S. Treasury has expanded its offer of a tax break on new car sales to those bought in states without a sales tax comes as a welcome aid.

    Under the original deal, which forms part of the American Recovery and Reinvestment Act of 2009, taxpayers who bought a new vehicle this year were entitled to deduct state or local sales or excise taxes paid on the purchase. Now, new sales made in states without a sales tax, such as Alaska, Delaware, Hawaii, Montana, New Hampshire and Oregon, can also... No one at this point doubts the country's, or the world's, economic woes, most especially those within the car industry. So the announcement today that the U.S. Treasury has expanded its offer of a tax break on new car sales to those bought in states without a sales tax comes as a welcome aid. Under the original deal, which forms part of the American Recovery and Reinvestment Act of 2009, taxpayers who bought a new vehicle this year were entitled to deduct state or local sales or excise taxes paid on the purchase. Now, new sales made in states without a sales tax, such as Alaska, Delaware, Hawaii, Montana, New Hampshire and Oregon, can also qualify for the deduction. "This tax deduction not only increases support for the auto industry as it seeks to rebuild, but also puts money back into the pockets of hard-working Americans," deputy treasury secretary Neal Wolin revealed to Automotive News. To be eligible for the tax break, the vehicle must have been bought after February 16, 2009, and before January 1, 2010, and is available regardless of whether taxpayers itemize on their returns. The catch is that taxpayers will only be able to make the claim on their 2009 tax returns filed next year. Furthermore, the deduction is limited to the fees and taxes paid on up to $49,500 of the purchase price of a qualified new car, light truck, motor home or motorcycle. Finally, taxpayers whose modified adjusted gross income is between $125,000 and $135,000 (between $250,000 and $260,000 for joint filers) miss out. Read More

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