BREAKING : Koenigsegg reaches agreement with GM to buy Saab

With General Motors selling out all their 'unprofitable' brands, like Hummer and Saturn, to emerge out of bankruptcy and called 'New GM'. Words now are all around the Swedish-originated, Saab. Well earlier reports were looming on China's Geely to buy Saab. However, with the help of the Swedish Government, the supercar maker Koenigsegg got into the bid, and won it.

Yes, it's official! General Motors announced that it has reached a preliminary agreement to sell the Saab brand to supercar manufacturer Koenigsegg. GM did not release any details on the price tag of the agreement, but said that the sale will include guaranteed financing by the Swedish Govenment.

“The sale, expected to close by the end of the third quarter of this year, includes an expected $600 million funding commitment from the European Investment Bank (EIB) guaranteed by the Swedish government,” GM said in a statement.

However, GM still has some stake in Saab. Therefore, GM will still provide Saab with platforms, engines, and technologies. Additionally, Saab plans to produce its next generation 9-5 models in the Saab production facility in Trollhättan, Sweden.

“Additional support is to be provided by GM and Koenigsegg Group AB to fund Saab’s operations and product program investments.” GM said in another statement

As for the new owner, Koenigsegg was founded in 1994, and has 45 employees and output of only a handful of cars a year. However with the match power of Swedish luxury and power, we'll probably see new Saab cars, that have some supercar inspiration.

Source : [General Motors]

GM branches: HUMMER purchased by China's Sichuan Tengzhong; Koenigsegg interested in SAAB; 16 buyers interested in Saturn; Holden safe from bankruptcy

It just been days, that General Motor announced that it's entering Chapter 11 bankruptcy protection filing, which should clear off into a "New GM", that should be into the new business within 90 days. Well, GM immediately headed off for new changes. It was earlier reports that GM will focus on less brands and less cars, to produce better quality and better service.

Well first up, Hummer. It was reported earlier that two Arab investors were interested in buying Hummer's stake. However, it was announced today GM and China's Sichuan Tengzhong for Heavy Industrial Machinery reached a deal into the purchase of Hummer. That right, Hummer is now fully-owned by a Chinese company! GM said that Tengzhong is a "privately-owned company and a leading domestic manufacturer of road, construction and energy industry equipment." On Tengzhong side, they announced that Hummer will still be manufactured in the U.S, which will secure more than 3,000 American jobs in factories and management. Tengzhong plans to produce more Hummer fuel-efficient trucks, and spread Hummer dealers worldwide. - [The New York Times]

In other GM brands, there's Saab. Saab was once asking their originated Swedish government to take loans for their independence from GM. However, GM is still considering any profitable bids from other companies to sell it to. Well, it was also once reported that China's Geely automaker is in fact interested to buy stake in Saab. Joining Geely, a report from the Swedish financial daily newspaper, Dagens Industri, Sweden's own supercar builder Koenigsegg, is now one of the parties interested in buying General Motors' Saab brand. GM announced that Saab's new owner should be decided by end of June. - [Reuters]

GM is also considering on selling Saturn. Saturn is the GM brand that ships Opel vehicles to the states. Well, now after GM have sold Opel to Canadian auto part Magna, Saturn is in a deep downfall. Nevertheless, 16 companies (GM weren't allowed to announce who they are) are bidding for the purchase of Saturn from GM. The sale of Saturn should help GM repay some of its debts. - [Detroit Free Press]

Finally, there's General Motor's Australian branch, Holden. Holden is responsible for such great cars like the Holden Commodore (Pontiac G8 in U.S. and Chevrolet Lumina in the Middle East), and the all-new 2010 Chevrolet Camaro that shares platform with the Commodore. It was stated today that GM intends to keep its relationship with Holden, and that it's safe from any bankruptcy terms. "We don't anticipate GM's bankruptcy will have any direct impact on Holden's workforce, dealers, or suppliers," said Holden Chairman and Managing Director, Mark Reuss. GM also announced that Holden will be a big part of the 'New GM' after the bankruptcy Chapter 11 filing. - [Stuff.Co.Nz]

Potential Buyers : Renault is interested in Saturn, Geely in Saab, Arab inverstors in Hummer, and Pontic not for sale !

With General Motor's new viability plan, which states the death of Pontiac, and "the resolution" of Saturn, Saab, and Hummer, companies and investors have come to GM to ask for the purchase of these companies.

To start with, Wall Street Journal reports that General Motors’ talks with selling Saturn to Renault SA, giving the French automaker a “launching pad for growth in North America.” Just like Chrysler is being saved by Italian Fiat, there is now a high chance that Saturn will be saved by French brand Renault. - [WSJ]

Saab, which GM is also looking to sell got a bid from Chinese Geely, which just few weeks ago made a bid for Volvo as well. It might be that Geely pressures Ford with that new bid to sell Volvo. Who knows maybe Geely will end up owning both Swedish automakers. Just like Indain Tata now owns both British Jaguar and Land Rover. - [WSJ]

As for Arabs, they want gas-guzzling off-roaders. According to GM's Middle East Managing Director, Terry Johnsson, a pair of Arab investors are interested in Hummer. Reports that Hummer is worth from $100 - $200 million. Hummer's new owner should be announced by GM within a few weeks. - [The Associated Press]

Lastly, Pontiac. The "phase-out" of Pontiac was a surprise to us all, and many still couldn't move on. Specially that many Pontiac dealers might get broke by it, one local Pontiac dealer owner, Jim Waldron, said he and other investors had offered GM money to buy the Pontiac brand and numerous plants from them. They would hire their own workforce and try to restart the rather strong brand. However, GM have turned them down by saying "Pontiac is not for sale at the moment." So does it mean that GM has plans someday to bring back Pontiac? Well, we have to optimistic. - [WJRT]

New Reveal : Geely GE Limousine

It was at this year's Shanghai Auto Show in China, that we discovered of our the Chinese auto industry can't think of any new or creative ideas. Because this, is the Geely GE Limo, a copy-cat to the proper luxury limo, the Rolls-Royce Phantom.Looking at the design of this thing, it seems Geely truly wanted to copy the Phantom in the most cheap way. So overall in the exterior, it seems to look like a Phantom, but like a decade ago. So it really looks like a 10+ year old car, and it doesn't even have suicide rear doors like the Phantom as well.Inside, the interior is best described as "lonely". The GE uses most of its 5.3 meters long on the rear seat, because this is a chauffeur's car, which is a good thing for such car. On the other hand though, it's actually pointless. Where the rear side has enormous leg-room, panoramic moon-roof, a TV, and even a mini bar, there's only one seat at the back. In other words, who's going to "party" alone sitting at the back, with no room for a partner to share maybe a drink or watch something on the tele. So obviously, they haven't thought this out. Which actually sums-up the whole car. Anyone who's going to come out of this thing, will surely end-up as a laughing-stock.

Source : [Geely via Autoblog.nl]