When the first rumors of a possible tie-up between Volkswagen and Isuzu were floating around, they were vigorously denied by Isuzu, and meekly (“currently not on the agenda”) denied by Volkswagen. Here they are again. The Nikkei [sub] writes without the usual qualifications that „Isuzu Motors Ltd. and Volkswagen AG have begun negotiating a tie-up involving the mutual supply of truck engines and related technologies, a move that could create a formidable force in emerging markets.”
According to the report, if that engine deal progresses well, “they will also consider acquiring stakes in each other.” Read More >
The Swedish National Debt Office has approved Saab’s deal to sell property to its Russian backer, Vladimir Antonov, but the Swedish firm is still waiting on approval of the deal from the European Investment Bank. Saab’s production operations have been shut down for two weeks, since the automaker began having trouble paying its suppliers. The EIB says its must simply review the deal, which would include the sale of Saab’s property to an Antonov-owned bank as well as the release of the remainder of Saab’s EIB loan, although GM gets to review the deal as well before it goes through according to thelocal.se. And since GM has long opposed Antonov taking a large share of Saab, which owns rights to some of its latest technology, Saab is reportedly also talking to several Chinese firms about partnerships that could save the struggling automaker.
The German Manager Magazin will write in its print edition that Volkswagen is considering buying all or part of Isuzu, the diesel-centric Japanese truck and commercial vehicle manufacturer. Volkswagen even has a codename for the deal: “Irene.” Another possibility: the truck firm MAN, which VW owns 30% of, could buy up an Isuzu stake, allowing VW to craft a three-part truck alliance between MAN, Scania and Isuzu. VW’s board member in charge of commercial trucks, Jochem Heizmann, is reportedly in Tokyo pursuing the acquisition and has inspected Isuzu. Toyota’s six percent stake in Isuzu (not to mention VW’s distractions integrating its Porsche and Suzuki alliances) could be serious obstacles. As VW and Toyota battle for the position of world’s largest automaker, Isuzu could become a symbolic battleground for the outsized ambitions of these two industry titans.
UPDATE: VW tells Automotive News [sub] that an Isuzu takeover is “not on the agenda.” Does that mean they’re not looking into the possibility? At this point, it’s not clear.
Saab ended last week with “no solution in sight,” but after a busy weekend it seems that the Swedish brand has found a way to keep rage, raging against the dying of the light. Bloomberg reports that
The Swedish government has agreed to let Saab free up collateral now used to back the EIB loan, of which Saab so far has drawn 217 million euros, the people said. The freed-up collateral allows Saab to sell property to Antonov’s company. The property to be sold would include at least parts of Saab’s factory in Trollhaettan in southwestern Sweden, where the carmaker is based.
Saab (technically still called Spyker Cars) also recently sold its Spyker sportscar business to Antonov who continues to be the only major investor involved in Saab and its ongoing rescue. And though Antonov continues to be happy to pour his money into the firm, it’s not as simple as just writing a check: Antonov keeps offering support and governments keep shooting them down. Where’s the private capital love?
Earlier this week we learned that Saab can not pay its supplier bills until its Russian sugar daddy, Vladimir Antonov, gets Swedish government approval to buy into the company that owns it. Now, suppliers are speaking out, telling Automotive News [sub] that the brand and its owner, Spyker Cars, owes “tens of millions” of Swedish crowns (10m crowns equals about $1.6m). A representative of the Swedish suppliers association explains
There is a perception in the media that there are discussions on extended credit times and such. But it is not about that, it is about the fact that Saab must pay its bills. If they cannot sort out their financial situation, things look very bleak.
With a “desperate” hunt for investment underway, Saab’s only hope appears to be Antonov, who says he has $71.5m to invest, an amount that should cover the $4.7m+ supplier debts. Meanwhile, work at Trolhattan has been stopped for at least the rest of the week. But even if Antonov gets Swedish government approval to invest, another, equally dire problem appears to be materializing: a dispute over the use of the name “Saab.”
While we wait for more details coming out of the joint Toyota-Microsoft press conference scheduled for a few hours from now, we thought we’d share some of the more recently-released details. A press release notes that the two firms
have forged a strategic partnership and plan to build a global platform for TMC’s next-generation telematics services using the Windows Azure platform. Telematics is the fusing of telecommunications and information technologies in vehicles; it can encompass GPS systems, energy management and other multimedia technologies.
Often considered, more than often denied, now it’s on the table again: Nissan and Renault, having lived in an open relationship with a joint CEO since 1999, could move under the umbrella of a common holding company. Joint CEO Carlos Ghosn told that to The Nikkei [sub] late Wednesday night in Yokohama. The managements of Nissan and Renault seem convinced that this is the way to go. However, there is a lot of work to be done before the wedding will become official. Read More >
Autoevolution reports that CPP Global Holdings, the Vladimir Antonov-owned firm that recently bought Spyker’s sportscar business, has bought Bowler, the makers of off-road racers built on the Range Rover platform. CPP Managing Director Brendan O’Toole explains the deal as
extremely positive news for fans and customers of Bowler vehicles. I have followed the brand closely for several years and am delighted to have the opportunity to take the Bowler brand to new heights on the basis of very exciting plans. I’m looking forward to working with Drew Bowler and the exceptionally talented team at Bowler to bring these plans to fruition. This development is another step in CPP’s strategy to grow as a collection of complementary specialist automotive businesses
The big question: is this deal a sign that Antonov still has more more money than sense, or will the Saab financier actually find some synergy between his new acquisitions, possibly in the form of the Peking-to-Paris SUV concept? Spyker hasn’t mentioned its possible SUV entry for a solid year, but having lost money every year since going public, a second model line might not be a bad idea (especially one based on an already-developed chassis like the Rangie’s). But as of our last report there’s still a number of details to work out before the Peking-to-Paris makes it to production, namely whether the sports-ute will use an AMG engine or a “supercharged Ferrari” mill. Decisions, decisions…
Some overly excited blogs may report that Honda is exiting the growth market India. Careful. Indeed, Reuters reports that “Hero Investments has agreed to buy Honda Motors Ltd’s 26 percent stake in Hero Honda Motors for around $851 million in a deal that will see the Japanese automaker exit its joint venture in India after more than 26 years.” So are they outta there? Read More >
Developing a new car with traditional technology costs an arm and a leg. Add future technology, and you are starting to talk real money. You need to spread the R&D costs across a lot of cars. The trouble is, massive sales of EVs are still just a dream. What to do in such a dicey situation? You look for partners. Renault and Daimler hammered out a new agreement. “Renault will supply the electric motors for the Smart and Twingo, we develop and make the batteries for both models,” Daimler’s head of research and development Thomas Weber told his hometown paper Stuttgarter Zeitung in an interview that will appear today in the print edition. Read More >
In an extended interview with Reuters, Nissan-Renault CEO Carlos Ghosn talks about the balancing act of leading two global automakers while maintaining their unique identities, a balance Ghosn says he wants to try to preserve even as the alliance looks to restructure its capital. Renault’s 44.3% stake in Nissan has caused some trouble with financial analysts because, as Ghosn puts it,
we are challenged (by financial markets) over how much capital we have imprisoned into the structure of the alliance. It’s a fair challenge. We are going to be studying and analyzing this with outsiders also, what are the ways to respond to these expectations from the financial markets without challenging the operating model which consists of keeping the two companies vibrant, motivated, engaged and keeping their identities
Does that mean a full merger? A new corporate structure? Where is Ghosn looking for answers as he attempts to give the markets what they want while maintaining the delicate balance between the needs of his two firms?
Bloomberg reports that Spyker Cars NV has sold its sportscar business to former chairman Vladimir Antonov for €15m, with the promise of up to €17m more over the next six years if profits allow it. They probably wont, however, as Spyker’s sportscars sell at a rate of about 30 per year, and have never turned a profit in the seven years the business has been public. The move is necessary, however, as Antonov was forced out of his ownership stake at Spyker (at GM’s request) when the firm bought Saab. CEO Victor Muller bought Antonov’s stake through his holding company Tenaci, and by selling Antonov the sportscar business, Spyker can pay back some of its €74m debt to Tenaci (another €17m will be converted into Spyker shares). Plus, explains Muller
Spyker’s (luxury car business) is a small fish in a large pond. Spyker would need additional funds, but to issue shares and dilute shareholders seemed like a very bad plan so we decided to divest these activities
With Spyker no longer part of Spyker Cars NV (the firm that owns Saab), the firm will be renamed this May (probably to some variation of “Saab”) when it lists on the Stockholm stock exchange. Still, though Saab and Spyker sportscars are no longer combining their crazy plans into a pie-in-the-sky juggernaut, and this may help get the ship right-side-up again, there’s no knowing where it’s all headed. Antonov could still buy back into Saab, and it sounds like the two will continue to share distribution channels. Whether either side of the business can actually make money is still the real question.
It’s a set piece, as predictable as the Beijing Opera: A rumor, confirmed by company insiders, followed by a denial, followed by – who knows. The Jaguar Land Rover flirt with China’s Great Wall enters stage 2: Never heard of it. Read More >
Recent Comments