- Sweden edition
- Change edition:
- France |
- Germany |
- Norway |
- Switzerland
May 25, 2012
GM set to pump billions into Saab deal
Published: 15 Sep 09 17:00 CET | Double click on a word to get a translation
Online: http://www.thelocal.se/22098/20090915/
General Motors is set to pay out an estimated 10 billion kronor ($1.4 billion) in a bid to ensure it completes the sale of its troubled Swedish subsidiary.
- Chinese automaker signs on to Saab deal (9 Sep 09)
- GM to fill Saab funding hole: report (2 Sep 09)
- Reinfeldt fobs off Koenigsegg Saab plea (20 Aug 09)
"GM is going to have a certain interest in Saab as part of a special financial arrangement that will be revealed in due course," said GM's European manger Carl-Peter Forster, speaking to news agency TT at the Frankfurt Motor Show on Tuesday.
Koenigsegg Group representatives have previously stated that GM is prepared to shell out 2.8 billion kronor for preferential shares in Saab Automobile, a move that would enable the ailing US giant to benefit from any future Saab profits.
GM's decision to sell Saab has already proved costly, with 7 billion kronor disappearing when the parent company took over a number of Saab's debts to its subcontractors.
GM has also agreed to pay for the production tools for the new Saab 9-5 and to release the Swedish firm from commitments to repay a restructuring loan, undertakings that amount to a combined total of around 3 billion kronor.
GM has also said it will contribute to further alleviating Saab's general cost burden to help ensure the successful implementation of Saab's new business plan.
Saab chief Jan Åke Jonsson confirmed that GM's contribution to Saab would land in the region of 10 billion kronor.
Jonsson added however that GM was hoping its goodwill would eventually lead to a return on its investment.
"We are going to retain our cooperation with GM through a number of agreements, and GM will deliver quite a few products to us that they make money from, such as engines and gearboxes," he said.
What do you think? Leave your comment below.
Fark It!
Digg This
Share everywhere
Send to a friend
Printable version
Twitter This
Police suspect theft after surprise cash 'windfall'
A woman is suspected of theft after she dropped a stash of 1,000 kronor ($140) banknotes in southern Sweden and then fled the scene, while local residents rushed in to gather the loot that was blowing in the wind. READ (3 COMMENTS) »
Cheap Norway nappies smuggled via Sweden
A gang of Lithuanian diaper smugglers is using Sweden as a transit country to ferry cheap nappies bought in Norway for resale at a stiff markup in eastern Europe. READ (15 COMMENTS) »
Nine of ten tourists 'happy' with Sweden
Nearly 17 million foreign tourists visited Sweden in 2011, and almost all of them enjoyed their stay, according to a new report. READ (1 COMMENT) »
Armed thieves escape after highway chaos
Police are searching for the men involved in a dramatic highway robbery in Stockholm on Tuesday night, in which one car was stolen at gunpoint and an armoured transport vehicle was rammed. READ (9 COMMENTS) »
Arla looks to milk UK, German dairy mergers
Swedish-Danish dairy giant Arla plans to merge with both a German and a British dairy cooperative in a bid to become the largest dairy company in the UK. READ (4 COMMENTS) »
Swedish airline Skyways files for bankruptcy
Swedish budget airline Skyways Express has cancelled all flights after it and its City Airline subsidiary filed for bankruptcy on Tuesday morning. READ (3 COMMENTS) »
Sweden drifting from 'Swedish model': report
Sweden's historically generous social safety net isn't as robust as it once was, according to a new report, which reveals Sweden has fallen below the average for many other developed countries when it comes to various types of social insurance. READ (37 COMMENTS) »
Swedish printer in South Africa banknote fiasco
An error involving a Swedish printing press has turned into a very expensive headache for South African central bank officials who have been forced to destroy millions of dollars' worth of faulty banknotes. READ (4 COMMENTS) »
Construction workers see fewer inspections
Sweden's work environment watchdog has made ten percent fewer inspections on construction sites over the past seven years, despite twice as many work-site employees since 2007. READ (1 COMMENT) »
Ikea bosses sacked over France spying scandal
Ikea is sacking four managers at its French subsidiary following allegations that they spied on employees and customers using an illegal police database, the Swedish home furnishing retailer announced on Friday. READ (1 COMMENT) »
- 17/05 Firm sued over Facebook 'threats' sacking (2 comments) »
- 16/05 Swedes' pension hopes tied to Facebook IPO (8 comments) »
- 16/05 IMF warns Swedish economy 'vulnerable' (9 comments) »
- 15/05 Patient blackmails doc after affair turns sour (3 comments) »
- 15/05 Astra Zeneca slashes 400 more jobs in Sweden »
- 14/05 Deserted Swedish homes used to grow cannabis (10 comments) »
- 14/05 Swedish union plea to Obama: 'help save Saab' (7 comments) »
- 11/05 PEAB founder freed in arena bribery scandal (2 comments) »
- 10/05 Skanska profits double but fail to beat forecasts (2 comments) »
- 10/05 Drunken airline pilot stopped at Arlanda (14 comments) »
Meet Sanna, 9 years old
Sanna is one of 2 million people in Sweden under the age of 18. Sweden is seen as a good place to grow up. The law makes sure children are well-protected and defends their rights and any organizations work with children's well-being. Read more »
Strindberg, king of drama
August Strindberg's plays shocked society, dazzled audiences and revolutionized drama. A century after his death, Strindberg, with his powerful, timeless themes, is celebrated around the world. Read more »
| 25/05 | Business Unit ControllerMichael Page | Stockholm |
| 25/05 | Business Unit ControllerMichael Page | Stockholm |
| 25/05 | CFO - Swedish Legal EntityMichael Page | Stockholm |
| 25/05 | CFO - Swedish Legal EntityMichael Page | Stockholm |
| 25/05 | Data architecture and delivery managerKlarna AB | Stockholm |
| 25/05 | Experienced SAP ConsultantIBM | Göteborg |
| 25/05 | Healthcare & Life SciencesIBM | Stockholm |
| 25/05 | International Business ManagerXdin | Huvudkontor i Göteborg |
| 25/05 | IT Controller based in GibraltarNet Entertainment | Stockholm |
| 25/05 | Nordic Inside Sales SpecialistIBM | Göteborg |
- 25/05 Merkel: Hard work, not eurobonds, will fix euro »
- 24/05 BMW 'stopped Swiss buying its cars abroad' »
- 24/05 Tenants must fund energy saving renovation »
- 24/05 Merkel resists pressure to relax austerity »
- 23/05 Bavaria threatens Merkel over energy policy »
- 23/05 City 'sold empty houses without finding owners' »
- 23/05 Streetside taken down after privacy complaints »
- 22/05 One in four low-earners works 50-hour week »
- 22/05 Doctors cash-in on patient referrals »
- 21/05 Germans tip-top for generosity on holiday »
- 23/05 piano lessons
- 23/05 Seeking helper for Posting parcels at postal office
- 22/05 Coffee-maker
- 22/05 Pet sitter available in Gotene and Lidkoping
- 22/05 apartment in Lund wanted
- 22/05 Musicians wanted
- 14:53 Anti-fästing vaccination. (ticks)
- 13:44 In a nutshell, My weight is my problem?
- 13:26 Home renovation forums
- 13:19 MOMS applicable in this case?
- 13:17 Help...Any Amusement Arcade in Stockholm?
- 12:14 My first "But this is Sweden" moment
- 11:16 Moving to Sweden with pregnant GF and two dogs.
- 10:10 Almonds... apparently they're different.
- 09:52 Good-High End restaraunts in Gothenburg
- 07:29 Switching jobs and new work permit
Comfortable Fully Serviced Apartments for Leisure or Business Travel Beautiful surroundings. Internet & Sat TV
www.oldriverhouse.se
Volunteer Venture is dedicated to promoting community tourism by welcoming volunteers and travelers to discover the cultural differences in Nepal as English teaching volunteers, orphanage volunteers, Monk teachers and many more
www.volunteerventure.org/
Find products and services that are specifically focused on English speakers living in Sweden!
FULL DETAILS
British-Australian Male Counsellor. Counselling Therapy for Depression, Mental Health, Sex, Relationship & Expat Issues
08-559 22 636 or CLICK HERE
Therapy in English in Stockholm Trained in California Individuals & Couples (08) 93 81 48 FREE phone consultation
Visit anxiousorblue.se
Turning Point Counselling centre offers the international community of Stockholm a safe space for personal development, counselling and coaching.
http://www.turning-point.se/show.asp
Swedish Down Town PR Consulting and Productions is an innovative business company which provides valuable assistance with Public Relations and Communications in the Swedish and the international market.
www.swedishdowntown.com
Your comments about this article:
The comments below have not been moderated in advance and are not produced by The Local unless clearly stated. Readers are responsible for the content of their own comments. Comments that breach our terms and conditions will be removed.
Honestly I am increasingly ashamed to be an American. The arrogance we display in insisting that we have the answers to life's problems is enough to make one's stomach turn.
The business model I refer to is the one that GM invented. The notion that one can build the same crappy platform and running gear and imbue it with any amount ( the more the better) of gaudy badges and gewgaws and stupid vinyl decals and lots and lots of shiny chrome crap and then market it as something else. America has not built a significant automotive product since the sixties.
Yet it's not enough that we dupe our own unsophisticated market into accepting this level of lowered expectation ; we have to try to force it on the rest of the world. This is madness. Please Sweden stand up to corporate greed and take back your heritage. Don't let the ugly side of capitalism chaulk up yet another mistake. Save us from ourselves.
The sad situation reflects more on the incompetence of local SAAB management in recent years than on GM ... keeping a cripplingly expensive local supplier cost base in a misguided attempt to preserve local Swedish manufacturing has brought a once proud and viable Swedish brand to the point where vast amounts of (Swedish and US) taxpayer money is needed just to keep it going ... and near term disappearance is a very real possibility :-(
Koenigsegg is the wrong buyer.