Saab Nearly a Done Deal; Hummer Sale Collapsing
By Michelle Krebs February 23, 2010General Motors sale of Saab to Dutch sportscar maker Spyker is expected to be finalized as early as Tuesday.
Meantime, GM's sale of Hummer to a Chinese company looks to be on the verge of collapse.
The sale of Saab comes on the heels of the final piece falling into place -- the approval of a $544 million loan from the European Investment Bank. The loan is backed by a guarantee from the Swedish government.
Spyker is buying Saab for an initial $74 million with another payment of $24 million due in July.
Hummer Deal Collapsing
Meantime, GM's sale of Hummer to China's Sichuan Tengzhong Heavy Industrial Machinery Co., looks like it is falling apart, according to unnamed sources quoted by the Financial Times in London. The company apparently has been unable to obtain government approval for the purchase.
The government apparently is balking because it wants Chinese consumers to buy smaller, more fuel-efficient vehicles, the complete opposite of Hummers. In addition, the Chinese government is seeking a consolidation of the nation's auto industry, which numbers as many as 100 automakers.
The Financial Times reports a Sunday deadline is set to conclude the $200 million deal. The deadline already has been extended by a month. Sichuan Tengzhong may be exploring a way to complete the sale using "an offshore investment vehicle," the paper said. -- Michelle Krebs, Senior Analyst and Editor at Large
LEAVE A COMMENT
The Hummer brand simply doesn't have any value. If the H1 were still a component, then the Chinese would be all over it, particularly given their huge army. But China has no use for H2s and H3s.
ADD A COMMENT