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Only one bidder for ailing Saab: report

Dutch boutique car maker Spyker Cars is said to be the only remaining bidder for the troubled General Motors unit Saab Automobile based in Sweden. Saab is in the first stage of gradually being liquidated.

Published: 17 January 2010 10:49 CET
Only one bidder for ailing Saab: report

According to Bloomberg News, “two people close to the situation” said the Spyker bid was the only one being considered by the Detroit automotive giant. The agency said Spyker has offered GM $75 million in cash and $325 million in preferred shares in the company that would emerge following the transaction. “Discussions between Spyker and GM are ongoing,” said a Spyker spokesman.

General Motors confirmed that discussions are proceeding, while it continues to wind down the company in a liquidation process. Bloomberg News suggested that a decision about whether to continue discussions with Spyker would be made by GM shortly.

The Bloomberg report was questioned by the financial group Genii Capital that includes Bernie Ecclestone, the Formula 1 boss. It had earlier placed an unspecified bid for Saab. Over the weekend a Genii spokesman said it would be able to deliver an even stronger bid than Spyker, with more cash upfront.

The Swedish government has stated it is prepared to provide loan guarantees if a suitable buyer is found. At stake are 3,400 jobs worldwide, mostly in Sweden where Saab cars are assembled. The company has not turned a profit since 2001.

In November Swedish sports car maker Koenigsegg backed away from a deal to buy the company from GM.

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GE

US giant GE to pay France €50 million after creating just 25 jobs out of 1,000

The French government announced Tuesday that US industrial conglomerate General Electric will pay €50 million ($57 million) after falling short of its goal of creating 1,000 new jobs in the country.

Published: 5 February 2019 15:54 CET
US giant GE to pay France €50 million after creating just 25 jobs out of 1,000
Alstom employees protest in front of the France's Ministry of Finance in Paris. Photo: AFP

GE had pledged to create the jobs by the end of last year as part of its 2015 purchase of the power and electrical grid businesses of France's Alstom.

But shortly after closing the deal GE unveiled a series of job cuts across Europe as slumping oil and gas prices crimped demand for its heavy-duty turbines and other equipment.

The company had already warned last year that it wouldn't meet the target, though the new CEO Larry Culp confirmed in October that GE would “fulfil its commitments.”

It had promised to pay €50,000 for every job not created over the three-year period.

The French finance ministry said after a meeting with GE officials Tuesday that the firm had created just 25 new jobs overall, meaning it would pay €50 million into an industrial development fund.

“GE underscored the significant of its continual investments in France during the period, and noted that despite the particularly difficult business climate, the group had done its utmost to create jobs,” the company said in a statement.

It pointed to a $330 million investment in offshore wind turbines in France announced last year, which it expects to eventually create 550 new jobs.

But union sources said last month that GE was planning to cut nearly 470 jobs, at its Alstom Power Systems GE Energy Power Conversion units.

Under Culp the company has been trying to get its power operations on more solid financial footing, with plans to cut costs further and reduce debt.

Last week it posted a $574 million profit for the fourth quarter, a welcome turnaround from the $11 billion loss a year earlier. 

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