Saab rescue deal collapses
Source: Agencies |
May 13, 2011, Friday
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Print Edition
Print Edition
A RESCUE deal for Saab involving China's Hawtai Motor Group collapsed yesterday, leaving owner Spyker chasing new funding alternatives to restart production at the Swedish car maker.
Spyker said it was continuing talks with Hawtai, while a source told Reuters that another Chinese company, sport-utility vehicle maker Great Wall Motor, was also talking to the Dutch company about a possible tie-up.
Meanwhile, Vladimir Antonov is still interested in investing in the troubled Swedish marque, a spokesman for the Russian businessman and former Spyker shareholder said.
Hawtai and Dutch-listed Spyker agreed a deal last week to pump 150 million euros (US$216 million) into the loss-making marque and produce a new model in China. But this was spoiled by a failure to get necessary approvals.
The Hawtai deal came only a year after tiny supercar maker Spyker bailed out the General Motors unit. GM retains an interest through redeemable preference shares.
"Since it became clear that Hawtai was not able to obtain all the necessary consents, the parties were forced to terminate the agreement with Saab Automobile and Spyker with immediate effect," Spyker said in a statement.
Spyker Chief Executive Victor Muller declined to comment on the failure of the Hawtai deal, the firm's current financial position or talks with other parties.
Loss-making Saab has veered towards collapse in recent weeks after running out of cash to pay its bills. Several suppliers stopped delivering parts, halting production at Saab's Trollhatten plant for most of last month.
A Saab spokeswoman said that all of its employees, including those who are not working due to the production shutdown, are being paid. Saab had 3,355 staff at the end of 2009.
The chairman of Sweden's association of car industry suppliers Christer Palm said he was very concerned about the production stoppages.
"Talks with suppliers haven't come very far. This is going to take time. Saab needs to find a new shareholder, an approved financier and I hope Victor Muller has one last trick up his sleeve."
Hawtai's failure to complete a deal follows similar cases, including Sichuan Tengzhong Heavy Industrial Machinery's bid for GM's Hummer, which collapsed in 2010 and China's Xinmao did not have enough time to obtain approvals to continue its bid for Dutch cable maker Draka.
Spyker said Saab Automobile may still enter into a strategic partnership with Hawtai or another Chinese party on manufacturing, technology and distribution in China.
Great Wall declined to comment on any talks.
Spyker said it was continuing talks with Hawtai, while a source told Reuters that another Chinese company, sport-utility vehicle maker Great Wall Motor, was also talking to the Dutch company about a possible tie-up.
Meanwhile, Vladimir Antonov is still interested in investing in the troubled Swedish marque, a spokesman for the Russian businessman and former Spyker shareholder said.
Hawtai and Dutch-listed Spyker agreed a deal last week to pump 150 million euros (US$216 million) into the loss-making marque and produce a new model in China. But this was spoiled by a failure to get necessary approvals.
The Hawtai deal came only a year after tiny supercar maker Spyker bailed out the General Motors unit. GM retains an interest through redeemable preference shares.
"Since it became clear that Hawtai was not able to obtain all the necessary consents, the parties were forced to terminate the agreement with Saab Automobile and Spyker with immediate effect," Spyker said in a statement.
Spyker Chief Executive Victor Muller declined to comment on the failure of the Hawtai deal, the firm's current financial position or talks with other parties.
Loss-making Saab has veered towards collapse in recent weeks after running out of cash to pay its bills. Several suppliers stopped delivering parts, halting production at Saab's Trollhatten plant for most of last month.
A Saab spokeswoman said that all of its employees, including those who are not working due to the production shutdown, are being paid. Saab had 3,355 staff at the end of 2009.
The chairman of Sweden's association of car industry suppliers Christer Palm said he was very concerned about the production stoppages.
"Talks with suppliers haven't come very far. This is going to take time. Saab needs to find a new shareholder, an approved financier and I hope Victor Muller has one last trick up his sleeve."
Hawtai's failure to complete a deal follows similar cases, including Sichuan Tengzhong Heavy Industrial Machinery's bid for GM's Hummer, which collapsed in 2010 and China's Xinmao did not have enough time to obtain approvals to continue its bid for Dutch cable maker Draka.
Spyker said Saab Automobile may still enter into a strategic partnership with Hawtai or another Chinese party on manufacturing, technology and distribution in China.
Great Wall declined to comment on any talks.
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