The deal with Hawtai and what it means for Saab and Spyker

May 4, 2011 21:00 Line

By: Swade

Comments (14)

Following are a number of questions and answers that I know are on people’s minds with regards to the recent deal Saab struck with Hawtai Motor Group, from China.

——

Q: What does this deal mean for the financial future of Saab Automobile?

This agreement with Hawtai, along with the convertible loan agreement with Gemini, means that Saab has effectively satisfied it’s short-medium term funding needs. This is subject to certain conditions, of course, but we believe these conditions should be met OK. A big part of our financial future involves the building and selling of Saab cars and we’re working hard with our suppliers in order to begin production as soon as possible. There will be a limited amount of production tomorrow (Thursday 5th May) and we hope to build on that progressively though the next week.

Q: Will this deal change the ownership structure of Saab and Spyker?

Saab is owned by Spyker and that will not change. What will change is the ownership structure of the parent company, Spyker Cars NV. Hawtai Motor Group will become a large minority shareholder in Spyker Cars NV, signing up for a 29.9% stake in the company. These will be new shares, which is why it’s fresh funding into the company. If Hawtai’s stake ends up being more than 29.9% based on the agreed price and capital contribution, they will sell the excess to an independent third party (or parties) in order to get under the 29.9% cap.

Q: The agreement is subject to consent from certain Chinese governmental agencies, the European Investment Bank, the Swedish National Debt Office and General Motors. So how ‘done’ is this deal really?

A: The agreement is indeed subject to a number of regulatory approvals, but we don’t foresee any obstacles to it being approved, and we expect the deal to be completed in a timely manner.

Q: Why did Saab choose Hawtai as a partner? There were reports that you were also talking to other Chinese car manufacturers.

A: Spyker and Saab have held exploratory talks with several prospective partners in recent times. Each potential partner had its merits, of course. In the end, Hawtai was seen as the best fit and we’re convinced that our mutual interests are served best through this agreement.

Q: What’s the brief on Hawtai? Who are they and how big are they?

A: Hawtai is a privately owned, premium Chinese car manufacturer. They have 4600 employees at the moment, including 120 foreign workers giving expert advice on their development. There are many similarities between Hawtai and Saab, with both companies being of a similar size and with a growing sales volume. Hawtai have invested significantly in the expansion of their production capacity and now have the facilities to build 350,000 cars, 300,000 diesel engines and 450,000 transmissions.

Q: What does this agreement mean for Saab’s plans to produce cars in China?

A: The agreement that’s been signed between Spyker and Hawtai includes both production and distribution of Saab branded vehicles in China. Saabs for the Chinese market will be mostly produced in China, which is an essential and cost-effective solution to gaining a better footing into the world’s biggest car market. More details on which models will be produced, imported and exported with regards to China will be forthcoming at a later date.

Q: There is a technology sharing agreement as part of this deal. What does that mean?

A: Both Saab and Hawtai have technologies and expertise in fields that could be of interest to one another. We’re confident that both parties will benefit from this partnership as time progresses. However, at this point we can’t provide any more specific detail as to what would be shared, nor what model vehicles any technologies might apply to.

Q: Can you say any more about the joint ventures of manufacturing and distribution that were mentioned in the press surrounding this deal?

A: The proposed set-up is currently being reviewed by our financial and legal team, so we have an agreement in principal, you could say, but we expect the details to be signed off in due course. It includes a joint venture for manufacturing and one for distribution of both imported and locally produced vehicles.

Q: What about CATC? Several months ago, Saab signed them up to take care of distribution in China.

A: We have to be mindful here of the distinction between importing and distribution. CATC will still be responsible for the importation of Saab vehicles into the Chinese market. Together with Hawtai, Saab will distribute the vehicles and set up manufacturing, too. This arrangement will complement our current agreement with CATC.

Q: Now that you have secured financing, how will you win back confidence in the marketplace? How can you convince people that this will not happen again?

A: With the current agreements in place (Gemini and Hawtai), we believe that we will be able to stabilise operations and restart production, which is the essential first step. Saab and Spyker are totally committed to restoring confidence amongst our employees, dealers, suppliers, customers and other stakeholders as soon as possible and we are working hard towards achieving that. In the end, it all comes down to product and we believe that our new products will be well received, but we know that have to work hard to give them the visibility they need in the marketplace.

Q: How do the deals announced this week effect the intentions of Vladimir Antonov? Is he still a candidate to become a shareholder in Spyker?

A: Mr. Antonov has consistently stated that his intention is to become an investor in Saab/Spyker and that has not changed. After recently receiving approvals from the National Debt Office here in Sweden, as well as General Motors, Mr. Antonov is now awaiting approval from the Swedish government and the EIB.

Q: What about Saab’s business plan? Is that up for review after recent events?

A: Spyker and Saab stated on March 29 that they would review their full-year targets. Whilst we’re encouraged by the support we’ve received (we have an order book of approximately 5,000 vehicles awaiting production when we restart), it would be reasonable to assume that previously communicated targets will not be met given recent events. At this moment it is too early to tell what the exact consequences of those recent events will be for the confidence in our company, or to give a new forecast.

Tags: ,
Category: Inside Saab Automobile, News Post a Comment (14)

Production preparations begin at Saab Automobile

May 4, 2011 13:51 Line

By: Swade

Comments (10)

Following the deals signed earlier this week, Saab are now negotiating with suppliers to ensure parts delivery and the intention is to restart with limited production in the Saab factory tomorrow.

Below are a couple of photos from inside the Saab factory in Trollhattan today. Whilst maintenance crews have been on site for all of the shut down period, they are now powering up the machines that have been idled in preparation for tomorrow’s restart.

I know from the guys I spoke to today that it’s going to be fantastic for everyone to see vehicles progressing through these production lines again.

——

It felt a little lonely walking through production with no vehicles moving through. It was as if the factory was missing its pulse.

But at least, now, the lights are on. Tomorrow, these vehicles will move again for the first time in three weeks.

The robotics at the ‘marriage point’ – that’s where the body meets the chassis – are being checked for correct operation and calibration after being restarted….

More controls being checked prior to operation….

This machine fixes the wheel nuts to cars and has different torque settings depending on which vehicle is next on the production line. It’s also being checked to ensure that the software and torque settings have been retained after restart.

——

Again, it’ll be great to get back to doing what we do best at Saab – building our cars.

On a personal note, I’ll be on a plane somewhere around Hong Kong and on my way home when production actually begins, which is disappointing for me. I’m so happy for the company, though, that we can restart and be a car company again.

–

Tags: ,
Category: Inside Saab Automobile Post a Comment (10)

Poll – What’s your favourite color Saab 9-3x?

May 4, 2011 9:22 Line

By: Swade

Comments (53)

I’d like to do a little experiment here.

Yesterday I heard that one particular color in the Saab 9-3x range was the lowest selling color (there has to be one, of course) and thus was in danger of being cut to make way for a new color in the coming model year.

What I’d like to do is conduct a poll looking at the current Saab 9-3x colors and see which colors are most (and least) popular with readers. It’ll be interesting to see the results.

Your choices, all from the current Saab 9-3x color palette, are as follows:

Arctic White:

Laser Red:

Carbon Grey Metallic:

Diamond Silver Metallic:

Glacier Silver Metallic:

Jet Black Metallic:

Oak Brown Metallic:

——

You can only vote for one color.

Please cast your vote in the poll below. It’ll be interesting to see whether the least favourite color in this poll is the same as the slowest selling color in dealerships.

What's your favourite color Saab 9-3x?

View Results

Loading ... Loading ...

——

Tags: , ,
Category: Polls Post a Comment (53)

Saab 9-5 SportCombi durability testing

May 3, 2011 23:19 Line

By: Swade

Comments (7)

I’m spending quite a lot of time at the moment just visiting various departments within Saab, getting to know what they do.

I spent a little time today at the climate controlled wind tunnel facility, where they can do various types of wind tunnel testing (though not aerodynamic testing, as it’s too small for that). The wind tunnel can be manipulated to simulate all types of weather conditions, but we’ll tell you more about that later.

They also have a couple of climate chambers there, where they can simulate different temperatures but without the wind effects. While we were visiting, a Saab 9-5 SportCombi was undergoing some durability testing on the rear rear door.

I’ll let the video tell you the rest…..

——

My thanks to Dennis “the doorman” for the lesson.

Tags: , ,
Category: Inside Saab Automobile Post a Comment (7)

Saabosphere – links we enjoyed this week

May 3, 2011 15:47 Line

By: Swade

Comments (6)

Following is a review of articles online about Saab that we enjoyed reading here at the Saab factory in Trollhattan. Please feel free to check them out for yourself.

——

An enjoyable look at the Saab PhoeniX Concept from the New York Auto Show.

The New York International Auto show wraps up this Sunday, concluding another round of the World Car Awards. While the World Car of 2011 and the World Green Car of 2011 respectively went to the Nissan Leaf and the Chevy Volt, the luxury market was represented with victories by the Ferrari 458 Italia (2011 World Sports Car) and the Aston Martin Rapide (2011 World Design Car). In other words, no brand new concept or production debuts won any of the top awards, begging me to determine my own winner – the Saab PhoeniX concept car.

——

Saabworld take a look at a rare piece of Saab’s history – the story of vehicle assembly in Denmark. It’s a very interesting read, including the little-known factoid about Saab’s largest export market from 1950 to 1953 being……. Morocco?! Perhaps that’s the biggest recipient of Danish assembled Saabs.

I haven’t checked any of this historical content with the Saab Museum, but it makes for some fascinating reading.

——

The following video shows Toomas Heikkinen driving a car supplied by Saab rally legend and mentor, Per Eklund, at last weekend’s leg of the European Rallycross Championship. Heikkinen finished 6th in the A-Final.

As posted by Mike Jager.

——

– Forbes.com

There are no explicit reasons given in the article as to why the Saab 9-5 appears on this list, but we’re very happy that it does.

We’d like to point out, however, that we’ve found that men love the Saab 9-5 as well.

——

  • Name a new Saab color (Saabs United)

Staff at Saabs United spotted a new blue color on a Saab 9-3 Convertible at the Saab Factory last week and held an open poll as to what the color should be named.

121 suggestions and counting……

——

Winding Road published a road test of the Saab 9-5 Turbo4 Premium last week and the results confirmed something that I’ve long suspected – the Turbo4 will be a genuine value surprise packet for many.

VS. BMW 528i

Saab’s brand identity is more laid back and casual than that of the sporting and slightly stuffy BMW, and that shows through in a direct comparison with the 528i. Where the BMW offers a more aggressive engine note, and firmer, pointier handling, the 9-5 is relaxing and more comfortable over the long haul. The Saab certainly looks like a fresher face, too, though the all-new 5-Series is not unlovely.

Surprisingly we end up liking the Turbo4 just a bit better than BMW’s straight-six here. Not only does Saab’s turbo deliver up more torque (258 versus 230 pound-feet in favor of the Swede), but it also offers superior throttle response. The sweet-revving six still sounds better though.

——

And….. without wanting to blow my own horn here, there’s a very enjoyable read about the foundations of this very website over at Car Advice, from Australia.

–

Tags:
Category: Saabosphere Post a Comment (6)

Press Release: SAAB AUTOMOBILE AB ENTERS AGREEMENT WITH HAWTAI MOTOR GROUP ON STRATEGIC PARTNERSHIP

May 3, 2011 8:22 Line

By: Swade

Comments (10)

Press conference live-tweeted on Twitter.

——

Zeewolde, The Netherlands, 3 May 2011 – Following yesterday’s announcement that Spyker Cars N.V. (Spyker) secured its short term funding, Spyker announces today that Spyker and Saab Automobile AB (Saab Automobile) signed an agreement with Hawtai Motor Group Company Limited (Hawtai). This agreement conditionally secures medium term funding and includes financing in the form of subscription agreements in the amount of EUR 150 million as well as a strategic alliance for China including joint ventures on manufacturing, technology and distribution.

Spyker, Saab Automobile and Hawtai sign agreement on strategic alliances partnership with respect to manufacturing, technology and distribution in China, subject to definitive transaction documentation

Spyker will enter into a subscription agreement with Hawtai in the total amount of EUR 120 million for in aggregate 24.6 million shares as well as a EUR 30 million convertible loan, subject to definitive transaction documentation and certain conditions.

As a part of the transaction Hawtai will invest EUR 120 million for up to a maximum of a 29.9 percent equity stake in Spyker on a fully diluted basis. The remaining EUR 30 million will be in the form of a convertible loan agreement in the amount of EUR 30 million with a 6 month maturity, an interest rate of 7% per annum and a conversion price of EUR 4.88 per share. The transactions are subject to agreement on definitive transaction documents and certain conditions, which include consents from certain Chinese governmental agencies, the European Investment Bank and the Swedish National Debt Office. As part of the transaction, Tenaci Capital will convert EUR 42 million of its current loan to Spyker into share capital in Spyker at EUR 4.88 per share, thereby substantially reducing Spykers interest burden.

Victor Muller, CEO of Spyker and Chairman of Saab Automobile said:

“The partnership with Hawtai allows Saab Automobile on the one hand to continue executing its business plan since we secured the required mid-term financing subject to meeting certain conditions, whilst on the other hand it allows Saab Automobile to enter the Chinese car market and establish a technology partnership with a strong Chinese manufacturer.

We expect that Saab’s unique brand values based on its aviation heritage, Scandinavian origins and innovation-driven character will do very well in the Chinese market. Our driver-oriented vehicles appeal to a whole new group of independently thinking customers who appreciate Saab’s advanced designs, safety and responsible performance.

With Hawtai’s clean diesel engine technologies and production capacity, and its ambitious development programs, we have found the right partner to develop the Saab business and build a solid relationship.”

Mr Richard Zhang, Vice President of Hawtai, said:

“This is a great day for our relatively young company which was founded ten years ago. The partnership with the iconic Saab brand will give us access to innovative technologies and an international network which would have taken us decades to build. On the other hand we have a very strong Chinese manufacturing and distribution infrastructure which we will make available to our new partner Saab Automobile. Our participation in Spyker, Saab’s parent company, demonstrates our commitment to the future of Saab Automobile as a premium European car manufacturer.”

Founded in 2000, Hawtai is a China-based privately-owned automotive company with its headquarters and R&D centre located in Beijing, and two production facilities located in Ordos, Inner Mongolia and Rongcheng, Shandong Province. Hawtai currently has an annual production capacity of 350,000 vehicles, 300,000 clean diesel engines and 450,000 automatic transmissions. By 2015, Hawtai aims to have raised this capacity to 1 million vehicles, 1 million engines and 1 million automatic transmissions, and to have established itself as a global leading automotive company.

Tags: ,
Category: News Post a Comment (10)

Relief and Determination

May 2, 2011 20:48 Line

By: Swade

Comments (13)

For those who haven’t heard yet, Saab has secured short term financing in the order of EUR 59.1million to re-start production at the factory. We are also set to announce a strategic partnership with Hawtai Motor Group, from China. The nature of that partnership is yet to be revealed, however such an announcement can only bring positive benefits for Saab Automobile.

I was in a meeting this afternoon when the short term funding announcement was made and I can tell you that the dual feelings of relief and excitement in the offices at Saab was palpable.

As an enthusiast, I’ve commented several times to the effect that there was no way that I could imagine this company going down. As with the sale from General Motors, there was just too much excellent product in the pipeline – product that is now imminent – and too many interested parties for that to happen.

That’s not to say, however, that the company hasn’t been stretched in an almost unreal manner over the last few weeks.

The factory hasn’t produced a single vehicle since I’ve moved here to Sweden to commence work with Saab. That’s a difficult scenario both for the workers idling at home and the office staff trying to function as usual, making plans for when things get better. It would have been easy to take a doomsday type attitude in the last week, for people to drop their heads and lose some hope. All I’ve seen, however, are people 200% committed to making this company work.

A lot of people have asked me what got Saab into this situation and the honest truth is that I just don’t know. I wouldn’t tell you if I did – that’s a job for someone with greater responsibilities than mine – but I simply don’t.

What I do know is that all the people I’ve met who work for this company, love working for this company. And those are exactly the people we want. My colleague in Saab’s social media area left a more secure job at Ikea to work for Saab. I know guys back in Australia who have come from Mercedes Benz and BMW to work for Saab. People want this company to succeed and they want to be a part of it. Now we have to execute.

We know that the Saab community gets passionate about this brand and we have to be just as passionate about developing, selling and serving the best we can. We have to prove to our customers, our dealer network and most importantly, our suppliers, that we have what it takes to succeed.

We believe the range is in place. Sales of the 9-5, in prior and more ‘normal’ conditions, were growing slowly but surely and the key model for Europe, the SportCombi, is on its way. The Saab 9-4x is already receiving extremely encouraging reviews and more press is on the way next week after a short-lead press introduction in the United States. Finally, the 9-3 Griffin – like wind-up models before it – is the best iteration of the Saab 9-3 that we’ve ever made. It still looks absolutely fantastic and the addition of the new direct injection engine will give the model a new lease of life. And don’t forget the low-emission 9-3 diesels that free owners up from road taxes in a number of countries in Europe.

With the range in place, it will be time for us to execute. I know there are things that need work in my particular area of interest (the web) but I also know that upgrades in that area are coming very, very soon. I know that we have very creative people looking at the best ways to promote our vehicle range in a way that gives us great value for money and will offer the opportunity for great experiences for the public.

We need to play our part, and we will. We also need you to play your part. We have a good order book ready and waiting for the factory re-start, which is very encouraging. Of course, we’ve always got room for more :-) .

Thanks for your support and your interest in Saab already. This company just keeps on fighting and we couldn’t do it without you.

Tags: ,
Category: Editorial Post a Comment (13)

Saab Automobile and Hawtai Motor Group to Announce Strategic Partnership

May 2, 2011 19:49 Line

By: Swade

Comments (8)

Saab Automobile and Hawtai Motor Group invite journalists to attend a press conference on May 3, 2011, for the unveiling and signing of an exciting strategic partnership between both parties.

The press conference will take place at 14:30 Beijing time (08:30 CET) in the Jinmao Ballroom (3rd Floor) at The Westin Beijing Chaoyang, 7 North Dongsanhuan Road, Chaoyang District, Beijing, 100027 China.

During the press conference both Mr. Victor Muller, Chairman of Saab Automobile, and Mr. Richard Zhang, Vice President of Hawtai Motor Group, will address the media and be available for questions.

Tags: ,
Category: News Post a Comment (8)

Press Release: SAAB AUTOMOBILE SECURES SHORT-TERM FUNDING

May 2, 2011 16:30 Line

By: Swade

Comments (10)

I think the appropriate phrase is yeeeeeeeeee-haaaaa!

——

Zeewolde, The Netherlands, 2 May 2011 – Spyker Cars N.V. (Spyker) announces that it secured the short-term funding of Saab Automobile AB (Saab Automobile) by entering into a EUR 30 million convertible loan agreement with Gemini Investment Fund Limited (Gemini).

Spyker entered into a EUR 30 million convertible loan agreement with Gemini with a 6 months maturity. The interest rate of the loan is 7% per annual and the conversion price is EUR 4.88 per share.

In addition to the receipt of EUR 30 million from Gemini, Saab Automobile will make a drawdown request to the EIB for an amount of EUR 29.1 million. As a result of the convertible loan and the EIB draw down – which is expected next week – Saab Automobile secured an amount of EUR 59.1 million. With the receipt of these funds, Saab Automobile secured the liquidity that is required to restart production.

Saab Automobile aims to restart production within a week, pending agreements on delivery schedules with its suppliers. In order to improve lead times to customers and dealers on existing and future orders, Saab Automobile will work together with its suppliers to minimize any impact from the recent production stop.

Spyker and Saab Automobile continue to work on securing medium and long term funding.

Victor Muller, CEO of Spyker and chairman of Saab Automobile said:

“I would like to apologize to our dedicated employees,suppliers, dealers and customers for the disruptions of the past weeks. We will do everything in our power to restore the confidence in our company as soon as practically possible.”

Tags:
Category: News Post a Comment (10)

Comment on events from April 30-May 1

May 2, 2011 14:02 Line

By: Swade

Comments (3)

After last week’s breakthrough, when the National Debt Office approved Vladimir Antonov as a shareholder in Spyker, we are now awaiting the decisions by GM, the EIB and the Swedish Government.

Discussions are ongoing with members of the EU parliament to ensure that the Bank’s review has the best prerequisites possible. Saab is also talking with Western Swedish Chamber of Commerce, various Unions in Sweden and Fordonskomponentgruppen (Vehicle Component Group).

One aim with these contacts is to emphasize facts that are not reflected adequately in the current debate. It includes highlighting that Saab does not cost Swedish taxpayers anything. On the contrary, employees at Saab and our close suppliers contribute with about 3.5 billion in the form of income taxes each year. Saab wants, in discussions with authorities and other public parties, to stress the value of creating good opportunities for Swedish industry politics and to maintain a strong automotive industry in Sweden.

Over the weekend, efforts to secure funding has continued- and negotiations with potential strategic partners, including the Chinese car companies – are still ongoing.

Tags:
Category: News Post a Comment (3)