From our source “JH” comes a curious tale, and one perhaps completely un-reported in the US auto media: Fisker’s controversial, possibly US-funded Karma assembly center had ground to a halt, with “about 400” uncompleted Karmas sitting outside. It turns out that the UAW isn’t the only group of union workers out there who are willing to strike. Were they killing the golden goose, or just asking for a fair share of the egg?
With a Halloween deadline to get its restructuring back on track looming, Swedish Automobile has rejected an offer by Youngman and Pang Da to buy 100% of Saab’s shares. Moreover, the struggling Swedish brand has canceled the existing agreement with Youngman and Pang Da, its erstwhile would-be rescuers. A Saab presser notes:
Today, Swedish Automobile N.V. (Swan) announced that it has given notice of termination with immediate effect of the Subscription Agreement of July, 2011 entered into by Swan, Pang Da and Youngman.
Swan took this step in view of the fact that Pang Da and Youngman failed to confirm their commitment to the Subscription Agreement and the transactions on the agreed terms contemplated thereby as well as to explicit and binding agreements made on October 13, 2011 related to providing bridge funding to Saab Automobile AB (Saab Automobile) while in reorganization under Swedish law.
Pang Da and Youngman have presented Swan on October 19 and 22 with certain conditional offers for an alternative transaction for the purchase of 100 percent of the shares in Saab Automobile which are unacceptable to Swan. However, discussions between the parties are ongoing
Whenever a CEO says “bankruptcy is not an option,” you know the game is up. After complaining in this Swedish Radio interview (in English) that his court-appointed administrator is trying to sell Saab off wholesale to the Chinese, Victor Muller trots out Churchillian and Nietszchian calls to arms… in fact, he does everything short of bursting into a spirited rendition of “I Will Survive.” Unfortunately, Muller’s credibility is long gone, and he doesn’t help himself by trying to portray Lofalk as some traitorous backstabber. With Saab months (years? decades?) into its death-flails, and the most recent “rescuer” turning out to be a non-player, is it any wonder Lofalk wants to hand over the mess to the only viable companies involved (especially when Muller calls North Street a “strong partner”)? Muller continues to labor under two basic delusions: first, that he can sell a majority share to the Chinese while keeping Saab an essentially Swedish (or at least European) company and second, that anyone cares whether Saab becomes a Chinese company. Sorry Victor, there’s just nothing left here to fight for…
Guy Lofalk, the administrator of Saab’s reorganization, will ask the court in Vänersborg to terminate the reorganization process. Before, Saab expressed “doubts that the bridge funding of Youngman and Pang Da, of which a partial payment has been received, shall be paid in full on 22 October 2011.” Finally something we can agree on.
What happens if the court accepts Lofalk’s recommendation? Stockholm News explains it:
With both China’s NRDC and Sweden’s NDO appearing unready to approve the Chinese takeover of Saab before a Halloween bankruptcy deadline, it seemed that Saab was properly borked. Without Vladimir Antonov or Gemini Investment Fund to hit up for yet another “bridge loan,” we fully expected to see Saab placed into bankruptcy a week from Monday. But if Saab’s parent company, Swedish Automobile, had found a private equity fund that was gullible enough to rush in where Antonov feared to tread and drop $44m on Spyker… well, we should have known that North Street Capital would be fool enough to get sucked into the Saab maelstrom. And sure enough, Reuters reports that
The private equity firm of racing car enthusiast Alex Mascioli, which bought the luxury sports car business of the Dutch owner of Saab in September, is to invest $70 million in the cash-strapped car maker as Chinese bridge financing looks uncertain.
Here we go… again.
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In an era of increasingly-globalized automobiles, the “market-to-market adjustments” which modify a global vehicle to “local tastes” are becoming an interesting source of insight into a company’s perspective. And Chevrolet Europe boss Wayne Brannon revealed one of the more significant adjustments in recent memory (because nobody reads the press releases), when he told Automotive News [sub]’s Dave Guilford
I just switch it into extended range mode, and I drive on fuel until I get there. When I drive in the little villages and towns, I drive in electric mode.
The reason it was important here is we have cities — like London — where you don’t have to pay a congestion charge if you’re running purely on battery. You save the battery for when you need it.
Gosh, that’s an interesting idea. It would certainly help clear up some of the confusion in the marketplace about why the Chevy Volt is the way it is. Imagine the tagline: “Gas or electric? You decide.” So, how about it, GM? Will that feature come to the US?
When you’re fighting a lost cause, no news can be good news. Which is why a media-distracting scandal involving Swedish Social Democrat Party leader Hakan Juholt has been one of the best things to happen to Saab since… the late 1980s or so. But here at TTAC, we’re always ready to remind our Swedish friends of the futility of human endeavor… a trait they apparently appreciate (see above). And what little news there is coming out of Sweden is bad.
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Sales of new passenger edged up only slightly in the EU, rising 0.6 percent to 1,231,147 units sold in September. Nine months into the year, 10,121,423 new cars found a buyer, 1.1 percent less than in the same period a year ago. For all intents and purposes, Europe is flat. Read More >
The guys who hang out at forums comparing turbocharged European hatchbacks that will never come to the US market (and which they wouldn’t buy if they did) have a new hypothetical plaything to consider: the upcoming Mercedes A-Class AMG hatch. 320 HP turning all four wheels is the basic proposition, with these exterior looks and this interior. And if the Golf-body looks just don’t jive with your idea of what makes a Mercedes, imagine the same package in this “baby CLS” body, with extra-large cupholders and other “tuned for American tastes” goodness. Myself? I like the idea of a blinged-out Mercedes STi.
Take one Ford Fiesta. Add four inches to the length, and pop up the roof for some extra headroom. Add a pair of small sliding rear doors, and you’ve got the forthcoming Fiesta B-Max. With Ford soft-pedaling its C-Max plans for the US market, don’t expect this tiny van to ever come to the US… at least unless gas prices go crazy.
Though the Chevrolet Spark has been in GM’s small-car spotlight this week, the firm’s Opel division is working hard on yet another tiny A-segment city car, tentatively known as the Junior or Allegra. Built on a shortened Opel Corsa platform, the Allegra will be a three-door, four-seat model targeted at the low end of the European market, at an estimated price of €10k. With a European debut targeted for the end of next year, Opel hopes to take the fight to the VW Up! And after it debuts, the smallest, cheapest Opel will become the home of an entirely new generation of small Opel-developed engines, with hybrid and EV versions rumored as well. Will it end up coming to the US as a Cadillac city car, as tipped by the recent ULC Concept? If gas prices go up, at least that option will be on the table…
Light-weight materials such as carbon-fiber, aluminum and magnesium are widely touted as key components of the drive towards greater fuel economy. Which explains why the automotive steel supplier industry is suddenly calling for an end to tailpipe emissions testing and a switch to the more holistic life cycle analysis testing. According to a press release from WorldAutoSteel, an industry group, the production of steel alternatives can create up to 20 times the carbon emissions of steel.
The last time we watched a hotted-up Opel Astra GTC tear around the ‘ring, I reckoned
it’s fairly unlikely that [GM] would bring a 290 HP, limited-slip, six-speed hot hatch to the Buick brand any time soon. Or is it? The line for “Mr Euro”-style self-delusion forms here…
I’m still skeptical about a 290 HP version, but a 200-ish HP GTI-fighter is making more sense… especially after seeing mules of the Astra GTC at GM’s Milford Proving Grounds earlier this week. And GMauthority reports that
according to sources, the Astra has been green-lit to become a Buick. The name is unknown, but it’s possible that it will wear the Verano nameplate, with some sort of a specifying moniker.
The Verano sedan is tipped as a “comfort-first” model, but a sporty, premium hatch-coupe variant could help Buick drive its buyer age even lower. Especially now that Acura has let its Integra/RSX legacy wither on the vine. But then, it sounds like the Buick boys don’t need encouraging on this front…
Death with Dignity apparently does not exist in Victor Muller’s vocabulary, as Reuters reports that the CEO of Saab’s parent company will receive loans from prospective investor Youngman in order to ward off liquidation in Swedish bankruptcy court. Youngman has committed some $97m in bridge loan financing to the troubled Swedish automaker, of which Saab has received $15m so far and will receive more payments this week in order to pay salaries and other expenses. Saab spokeswoman Gunilla Gustavs explains
“We are putting bridge financing in place so we can fund business during the reorganisation — so we don’t incur new debt. We have running costs, such as electricity, that we need to take care of. There are a number of business-critical operations that need to be funded”
Saab’s salaries are currently guaranteed by the Swedish government as part of Saab’s bankruptcy protection, but that guarantee expires on October 21, just before October salaries are due. Missing that payment would likely have spelled the end of Saab, but with Youngman’s money arriving in dribs and drabs it seems that we may be documenting the firm’s undignified collapse for another month or so.
Everybody has heard that Europe and the Euro are in trouble. So why does it take so long to save it? We’ll let you in on a little known secret. First, let’s go to Slovakia. The eurozone’s second poorest member quietly turned into an automotive powerhouse. Ever hear much of the Slovakian auto industry? You won’t. Global automakers such as Volkswagen, Peugeot, Kia have discreetly set up car plants in Slovakia. Parts makers followed. Wages are low – 780 euros a month on the average. Without anyone looking, Slovakia turned into the world’s top auto maker per capita. They want to keep it that way. And that’s why they don’t want to help Greece. Read More >
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