Spyker shareholders approve Saab deal

Shareholders in Spyker Cars NV have approved the $74 million purchase of Swedish automaker Saab from General Motors Co., Chief Executive Victor Muller said on Friday.

The meeting, which was closed to the public, was convened to approve the deal forged two weeks ago.

Muller told reporters on a conference call that the combined company would seek listings on the London Stock Exchange and the Stockholm Stock Exchange, and delist from the Euronext Amsterdam exchange. He also vowed to reach profitability in 2012, although neither Saab or Spyker have made any money in the past decade.

Spyker's Muller has already secured the $50 million needed to close the deal with GM, with the remaining $24 million due in July.

In addition to the cash part of the deal, the new company will also have $326 million in redeemable preference shares issued to GM, $200 million in cash and a 400 million euro ($547 million) European Investment Bank (EIB) loan.

Saab produced just 20,791 cars last year as sales slumped to 39,903 from 94,751 in 2008, but aims to raise production to pre-crisis levels of about 100,000 to 125,000 within two years with the help of a new sales and distribution strategy.

EIB OKs 400 million euro loan to Saab

The European Investment Bank said on Friday it had authorized a 400 million euro ($546.9 million) loan to Saab, which is being bought by Dutch sports car maker Spyker Cars NV from U.S. parent General Motors Co.

"The EIB has confirmed the authorization to conclude the 400 million euro loan to SAAB Automobile AB ... and to conclude the guarantee agreement with the Swedish National Debt Office," the EIB said in a press release.

GM criticized for winding down Saab despite bids to buy brand

General Motors Co. was criticized in Sweden after the U.S. automaker named a restructuring firm to run the winding-down of Saab even as it reviewed several bids which included an offer from Formula One supremo Bernie Ecclestone.

"It is irresponsible of GM to move at the same time in two different directions -- both toward a sale and a wind-down," IF Metall chairman Stefan Lofven said in a statement.

GM has been trying to sell Saab for more than a year and is preparing to shut the money-losing brand if it doesn't consider the bids for the the 60-year old company suitable.

In a statement on Friday, GM named consultancy AlixPartners -- already closely involved in GM's restructuring -- to run Saab's liquidation. GM said the process is expected to take several months.

GM also confirmed that it had received several offers for Saab and said it is evaluating the bids. This evaluation is not affected by the appointment of AlixPartners, GM said.

Saab an 'amazing brand'

Dutch luxury carmaker Spyker Cars NV made an improved bid for Saab, while Ecclestone joined forces with Luxembourg-based private investment company Genii Capital to pitch a rival proposal. A group of Swedish investors also scrambled to submit a bid.

Genii Capital, which recently invested in Renault's Formula One team, said it will "aggressively work towards a successful closing of the transaction with all the relevant stakeholders of the company."

Lars Carlstrom, a Swedish investor who is coordinating the Genii-Ecclestone bid, said the Formula One boss and his partners were keen on buying Saab mainly for the value of its brand.

"What Genii and Ecclestone have found is that Saab is an amazing brand, comparable to brands such as Porsche and BMW," he said. "They love brands and they really value Saab's brand ... They are really supportive and will definitely be able to bring Saab to new heights."

Ecclestone has $2.4 billion fortune

Ecclestone, 79, is one of the wealthiest figures in sport and was ranked 24th in Britain in the 2009 Sunday Times rich list with an estimated fortune of 1.5 billion pounds ($2.4 billion). He has been a leading player in Formula One since he bought the now-defunct Brabham team in 1972.

Spyker is hoping to gain Saab's technical resources and its distribution network, while bringing its entrepreneurial skills to the new group.

Swedish media reports on Friday named Jan Nygren, an ex executive of the aerospace arm of Saab and former senior official in the defense ministry, as the head of one group of Swedish investors submitting a last-minute bid.

Saab spokesman Eric Geers said any decision over its future and the latest round of bids was in the hands of General Motors. "We all hope these bids are strong enough for General Motors to consider them."

Co-owner is confident that Koenigsegg can rescue Saab

Koenigsegg Automotive believes it can rescue General Motors' loss-making Saab unit, a co-owner of the Swedish luxury sports car maker said.

"We think it is possible (to rescue Saab) and we have several good solutions to bring into Saab," Baard Eker, who holds 49 percent of Koenigsegg, told the Dagbladet newspaper.

General Motors is close to selling Saab to Koenigsegg, a source familiar with the talks told Reuters last week. Saab sought protection from creditors in February and has been granted an extension of its business reorganization until Aug. 20 to line up a new owner and restructure.

"Let me make one thing clear -- we are not buying Saab only to chop it up," Eker said, referring to what he calls "poisonous comments" in Swedish media.

Eker, a Norwegian entrepreneur, said obstacles may still emerge which could potentially stop the sale, but he did not reply negatively when asked about Saab's comments that a deal could be in place next week, according to the paper.

Eker confirmed that several investors are willing to finance the acquisition, but declined to name them or how much money they would contribute.

When asked what was the most important thing that he and Christian von Koenigsegg, the sports car company's founder, could bring in as new owners, Eker said: "Culture and technology. Saab needs to be more innovative."

Eker also said it was not their intention to let "many people go," but declined to be more specific.

Koenigsegg's hand-built super cars are in Forbes magazine's list of the world's 10 most beautiful cars. The company has less than 50 employees and turns out only a handful of $1 million cars a year.

GM, which filed for Chapter 11 protection June 1, put Saab up for sale after deciding to cut its 20-year ties with the brand.

Saab produced nearly 100,000 cars last year, about 1 percent of GM's global output. GM has held talks with a number of potential buyers, including Fiat and Chinese automakers.

GM taps Swedish sports car maker as top Saab bidder, reports say

General Motors has chosen Swedish luxury sports car maker Koenigsegg Automotive AB as the preferred bidder for the Saab brand, news reports said. Koenigsegg and Norwegian investors have signed a letter of intent to take over Saab, Swedish television said today, attributing its report to unnamed sources. "The deal is there now and a few minor details remain," a source told Reuters. The reports follow earlier statements from Saab spokesman saying an announcement on the top finalist could come as soon as this week. GM, which filed for Chapter 11 protection June 1, put Saab into the equivalent of bankruptcy in February after deciding to cut its 20-year ties with the brand. The shedding of Saab underscores GM's intensified global effort to jettison non-performing brands and business lines. Over the last two weeks, the automaker has announced preliminary agreements to sell Hummer to a Chinese suitor and to sell Saturn to Roger Penske's Penske Automotive Group Inc. On Monday, GM said it would terminate its medium-duty truck business after trying to sell it for four years. A deal to sell the unit to Navistar Inc. fell apart. GM spokesman Chris Preuss declined to comment on the Saab bidding. Koenigsegg was one of three Saab finalists named in recent published reports. Bloomberg News, citing one person familiar with the talks, said Koenigsegg was picked because it's an automaker and because it is committed to investing in Saab.

The Financial Times reported on Tuesday that Merbanco, a group of Wyoming investors, is interested in Saab, as is U.S. billionaire Ira Rennert's Renco Group. The FT said GM would provide $500 million in assets and cash, plus production equipment for a new Saab model as well as $150 million of cash already in Saab's account. Under the deal, the new owner is to pay GM back if it succeeds in turning around Saab, the report said. Cash amounts pledged by the three bidders vary, but it is smaller than the amount GM is contributing, the paper said.

GM prepares to announce Pontiac closure next week

General Motors is preparing to announce early next week that the Pontiac brand will be eliminated, said a source familiar with the company's plans.

The announcement will be made as part of an updated viability report to the U.S. auto task force, the source said. A second source indicated earlier this week that GM, surviving with $15.4 billion in U.S. bailout funds, was considering phasing out Pontiac instead of sticking with a plan to have it continue as a niche brand.

In its proposal to the U.S. Treasury on Feb. 17, GM said Cadillac, Chevrolet, Buick and GMC would be its four core U.S. brands. On March 31, the task force told GM that its restructuring plan wasn't aggressive enough and denied a request for $16.6 billion in additional aid.

Pontiac spokesman Jim Hopson declined to comment on Pontiac's future.

"I can't speculate what next week is going to hold," he said. "When we were asked to go back and look at the viability plan, everything went back on the table. We're reviewing everything. Nothing is sacred. We're still under the original viability plan until told otherwise."

The U.S. today granted $2 billion to keep GM operating while it prepares for a new, June 1 restructuring deadline. GM has been staying afloat with $13.4 billion in U.S. loans granted in December by President George W. Bush.

Bloomberg News said GM is expected to tell the government that it will stick with plans to keep GMC, Buick, Chevrolet and Cadillac.

Saab, Hummer and Saturn are for sale.

Muscle-car icon

Pontiac, which launched the 1960s U.S. muscle-car era with the GTO, sold 267,348 vehicles in the United States last year, less than a third of its 1978 peak of 896,980. This year's volume dropped 43.5 percent through March as industrywide demand fell 38.4 percent.

"Pontiac is one of my favorites -- I especially like the G8," said John Pitre, general manager of Motor City Auto Center in Bakersfield, Calif., which sells Buick-Pontiac-GMC and Saturn. "I would be sad to see it phased out. However, if some of those products became part of the Buick brand, I could understand GM's logic."

Chris Haydocy, who owns a Buick-Pontiac-GMC store in Columbus, Ohio, said Pontiac isn't essential as long as the revamped sales channel provides most of what customers are looking for.

Said Haydocy: "I think you need 10 or 12 models to do that."

Killing Pontiac would make sense, said George Peterson, president of marketing and product consulting firm AutoPacific Inc.

"It's sort of a shadow of itself," he said. "All of the Pontiacs, except for the G8, are copies of Chevrolets or GMCs, so there really isn't any reason to keep Pontiac around.''

GM introduced Pontiac in 1926. GM decided to kill Oldsmobile in 2000, three years after its 100th anniversary.

Camaro meets the press, GM execs tout mpg

Unveilings take place in Detroit, Los Angeles

General Motors today showed off the widely anticipated 2010 Chevrolet Camaro to the media, telling reporters it will beat competitors' fuel economy.

"We'll be promoting the fuel economy story very much," Ed Peper, vice president of Chevrolet, told reporters. "We are 2 or 3 mpg ahead of the competition."

The vehicle will be built at GM's Oshawa, Ontario, plant in Canada. Production is slated to begin on Feb. 16, 2009.

Peper said the V-6 version will get an estimated 26 mpg, while the V-8 version will get an estimated 23 mpg. The V-6 will get 304 hp, while the V-8 will get 422 hp.

"And we are still working on it," Peper said. He also hinted that a turbo 4-cylinder version could be in the works.

Sales begin in the first quarter of 2009, and Peper said more than 6,000 hand-raisers are interested in the car. The early-year launch will help spur sales, Peper said, because spring tends to be a popular time for consumers buying sports cars.

GM will disclose a price once the vehicle is closer to production, but Peper said the Camaro will be the "best value in the sports car segment."

The company plans to launch a convertible version in 2010.

GM is counting on the baby-boomer crowd for out-of-the-box demand, Peper said. The company's biggest challenge will be to attract buyers who aren't traditional enthusiasts.

Initially, Peper expects demand for the V-6 and V-8 versions will be split about 50-50, as enthusiasts will want the V-8. Long-term, he expects the V-6 version to be the sales leader.

Taking on the competition

GM views the Camaro's competitors as the Ford Mustang, Nissan's 350-Z and the Dodge Challenger, Cheryl Pilcher, product manager for the Camaro, said during the vehicle's unveiling in Los Angeles.

As for volumes, "we will build as many as we can sell," says Pilcher.

The production version of the Camaro doesn't stray much from the concept car GM showed in Detroit in 2006, though the chassis is different, says Vince Muniga, engineering spokesman for GM. The new Camaro is built on the GM's global rear wheel drive platform.

Says Tom Peters, design director for the Camaro exterior: "Our main goal was to get as close to the concept as possible."

The same is true for the interior, says John Zelenak, design manager for the Camaro interior.

Dealers are excited about the new Camaro.

"We have lots of lots of people waiting," to see the car, says Rusty Bunstead, sales manager at the Courtesy Chevrolet dealership in Morgan Hill, Calif., a city south of San Francisco.

Courtesy added a Camaro button on its Web site where customers could see a video and sign up to receive updates on the model long before the launch.

Courtesy Chevrolet is one of the largest Corvette dealers in the United States. It has two dealerships, one in Morgan Hill and one in San Jose, Calif.

Says Bunstead: "The Camaro is the poor man's Corvette."

Craig Trudell contributed to this report

ENLARGE Ed Welburn, GM design vice president, and Ed Peper, vice president of Chevrolet, show off the 2010 Camaro in suburban Detroit today. Photo credit: RICK KRANZ

PRESS RELEASE: Chevrolet Unveils the 2010 Camaro – A Fun, Efficient Sports Car for the 21st Century

Oshawa, Ontario (July 21, 2008) – Chevrolet today introduced the production 2010 Camaro being built at GM's Oshawa Car Assembly Plant. It is a heritage-inspired sports car for the 21st century, combining great looks and performance; advanced technology and surprising efficiency – including 9.0 L/100km estimated highway fuel consumption on the high volume V6 models. Sales begin in the first quarter of 2009.

"The new Chevrolet Camaro delivers the best of both worlds – great heritage and a thoroughly modern, advanced package of sporty driving, comfort and technology," said Marc Comeau, vice president sales, service and marketing for GM of Canada. "And it does so with styling, fuel economy and value our competitors simply can't match."

Built on GM's new, global rear-wheel-drive architecture, the Camaro is offered in V-6-powered LS and LT models, as well as the V-8-powered SS. All models and powertrain combinations include fuel-saving six-speed transmissions.

Product highlights include:

o Sleek, heritage-inspired interior and exterior styling with contemporary cues

o Robust body structure, exceptional build quality and suite of safety features including 6 standard airbags

o Advanced powertrain technologies, including engines with direct injection and Active Fuel Management, enabling a balance of performance and fuel economy

o Four-wheel independent suspension system tuned to match the performance capabilities of the respective powertrains

o Variable-rate power steering with the rack mounted forward of the front axle for better weight balance and greater driver feel

o Four-wheel disc brake systems standard on all models, including four-piston Brembo calipers on SS models

o StabiliTrak stability control system and traction control standard on all models

o Family of 18-, 19- and 20-inch wheels

The new Camaro also has technologies that enhance comfort and convenience, including:

o Bluetooth phone connectivity

o Premium Boston Acoustics audio system

o USB connectivity

o Ultrasonic rear parking assist (late introduction)

o Remote vehicle starting system

o OnStar

o XM Satellite Radio

Powertrains

An advanced, efficient 3.6L direct-injected V-6 with variable valve timing is standard on LS and LT models, which are expected to comprise at least 70% of Camaro sales in Canada. Direct injection technology helps the engine deliver more power through increased efficiency, while maintaining fuel economy and lowering emissions. That means less fuel is consumed and lower emissions generated – including a 25-percent drop in cold-start hydrocarbon emissions.

The Camaro's 3.6L engine also employs variable valve timing to optimize performance and fuel economy across the rpm range. It is rated at an estimated 300 horsepower (224 kW) and 273 lb.-ft. of torque (370 Nm). A six-speed manual transmission is standard with the 3.6L engine; a Hydra-Matic 6L50 electronically controlled six-speed automatic, with TAPshift control, is available.

The high-performance Camaro SS is equipped with a powerful 6.2L V-8, with a choice of a six-speed manual or six-speed automatic transmission. Manual-equipped models receive the LS3 engine, estimated at 422 horsepower (315 kW) and 408 lb.-ft. of torque (553 Nm) and is paired with a TR6060 six-speed transmission.

A new, L99 engine, based on the LS3, is used on automatic transmission-equipped SS models and also includes GM's fuel-saving Active Fuel Management feature to improve fuel economy. The L99 is estimated at 400 horsepower (299 kW) and 395 lb.-ft. of torque (535 Nm); and it is matched with a Hydra-Matic 6L80 six-speed transmission. This combination delivers an estimated 10.2 L/100km of fuel consumption on the highway.

The 2010 Camaro exemplifies GM's global development process. The design concept originated in the United States; engineering was directed by GM's global rear-wheel-drive team in Australia; validation was conducted on roads around the world and assembly will take place at GM's award-winning Oshawa Car Assembly Plant in Canada.

General Motors of Canada (GMCL) is engineering and manufacturing advanced environmental technologies ranging from Active Fuel Management (cylinder deactivation) and hybrid systems to E85 biofuel and fuel cell vehicles – more than any other auto company right here in Canada. Headquartered in Oshawa Ontario, GMCL employs more than 15,000 people nationwide. GM of Canada manufactures vehicles, vehicle powertrains, and markets the full range of General Motors vehicles and related services through 732 dealerships and retailers across Canada. Vehicles sold through this network include Chevrolet, Buick, Pontiac, GMC, Saturn, Hummer, Saab and Cadillac.

GM mulls job cuts, sale of brands

General Motors could shed thousands of white-collar jobs and sell or cease producing certain brands as part of a strategy reevaluation, said the Wall Street Journal, citing people familiar with the matter.

The job cuts are expected to be approved at a meeting of the GM board in early August. The management may also suggest options for raising additional cash to help GM make it through the downturn, and may discuss cutting certain brands, the sources said.

A company spokesman declined to comment on either the job or brand cuts, said the report.

GM sells under eight different brands, but most, including Buick, Saturn and Saab, struggle to attract buyers. The company has already decided to put its Hummer division up for sale.

On the job cuts, GM employs 76,000 white-collar workers globally, with the bulk of the force based in North America, said the report.