WHILE THE proposed takeover of Saab by supercar Swedish car firm Koenigsegg has been warmly welcomed by car fans, analysts are sceptical a tie-up makes sense, noting that Christian von Koenigsegg, founder of the firm bearing his name, has no evident experience owning or running a firm so large.
Last year Koenigsegg made 18 cars, Saab more than 93,000.
“There are no economies of scale between Saab and Koenigsegg. This is a constellation of buyers that probably have different interests than GM, which was driven by volume,” said Mikael Wickelgren, an automotive expert at Skovde University, in southwestern Sweden not far from Saab’s headquarters.
“This will be a business where one would assume that the owners want to chisel out a personality for Saab. The logic would be in the special and unique. Otherwise I cannot understand this deal.”
Koenigsegg has backing from Norwegian entrepreneur Bard Eker, whose holding company owns 49 per cent of the car maker.
Halldora von Koenigsegg, spokeswoman for the company and wife of its founder, said a memorandum of understanding had been signed but declined to comment further.
The deal would see Saab, which was put up for sale earlier this year, emerge from two decades under its US parent.
While Saab is known for its appeal to safety-conscious family drivers, Koenigsegg caters for clients who arrive in private jets at the firm’s factory, which boasts its own airstrip.
Christian von Koenigsegg, who founded his firm 15 years ago when he was 22, is known in the industry as a quality-obsessed car enthusiast as opposed to a businessman.
But Saab and Koenigsegg share a history of technological innovation. Koenigsegg has patented some of his own gadgetry while Saab created a sensation in the 1970s with the use of turbo technology in everyday cars.
Now Saab says it needs $1 billion to help it overhaul production and launch new models while absorbing expected losses of about three billion Swedish crowns (€275 million) this year.
An EIB official said its board needed to have key information six weeks before a meeting. “That means we will not be able to have it ready before the meeting in July, and the next meeting is in September,” said Mats Gunnarsson, adviser to the EIB management committee.
Joran Hagglund, state secretary for Sweden’s industry ministry, told Reuters: “We do not yet know if Koenigsegg group will need loan guarantees or not.”
– Reuters
Factfile: Koenigsegg and Saab Automobile
COMPANY HISTORIES
Koenigsegg, founded by Christian von Koenigsegg in 1994, makes high-performance sportscars in a former aircraft hangar.
Saab Automobile has made cars in Trollhattan, southwest Sweden since 1949. GM bought 50 percent of the firm in 1989 when Saab Automobile was established as an independent company. GM bought the rest of Saab Automobile in January 2000.
PRODUCTION
Saab sold 93,295 vehicles globally in 2008, representing 1.1 per cent of total GM sales volume, down 25 per cent from 2007.
Koenigsegg manufactures only a handful of its exclusive cars. Last year it made 18 cars.
STAFF
Saab employs around 3,400 people. Koenigsegg has a staff of 45.
FINANCIALS
Saab has not made a profit since 2001 and has estimated its 2008 loss at €276 million. Koenigsegg reported sales of €9.9 million last year.