Saab Has Bidder
Swedish luxury automaker Koenigsegg will buy the brand the Swiss government refused to back.
June 12, 2009
Beleaguered US automaker GM has finally found a buyer for its Swiss automaking platform, Saab, according to multiple reports.
Svenska Dagbladet, a Swiss media company, reported that Bard Eker, 49% owner of the buyer, will execute the deal with the backing of Norwegian and North American investors. Koenigsegg itself has struggled to turn a profit, only generating marginal gains in 2008. Saab has predicted a return to profitability by 2011, it has lost $340 million in 2008 and forecast similar losses for this year.
The reorganization is expected to take about three months.
Koenigsegg Automotive AB will buy the company, which has seen continuing sales slides in recent years. GM has stated that its aim is to sell the Swiss automaker by the end of this month; already, it has found a buyer for its Hummer brand, China's Sichuan Tengzhong Heavy Industrial Machinery Co.
It remains unclear which brands will be sold by GM, and to whom; its Saturn brand will likely be sold to Penske Automotive Group in a joint effort by the companies to preserve more than 300 dealerships. The company is still working to sell its Opel automotive brand and UK brand Vauxhall to Magna International Inc., though talks remain ongoing.
Now, GM is working to sell its core brands—Chevy, Cadillac, Buick and GMC--through 3,600 dealerships, from its existing 5,969 dealer network. Next year, the bankrupt automaker plans to launch its Chevrolet Volt extended range electric car.
The future of Pontiac, another GM brand, is certain, however: it will be discontinued.
Weil, Gotshal & Manges attorneys Harvey Miller, Stephen Karotkin and Joseph Smolinsky are serving as lead counsel for GM, which is also being assisted by Jenner & Block and Honigman Miller Schwartz & Cohn.
Al Koch of AP Services, an affiliate of AlixPartners, is providing restructuring advice to GM, which is using Morgan Stanley, Evercore Partners and the Blackstone Group for financial advice. Cravath, Swaine, & Moore is providing counsel to GM's board.
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