“Reports: US-led Consortium Enters Race To Buy Ford's Volvo - RTT News” plus 3 more

Reports: US-led Consortium Enters Race To Buy Ford's Volvo - RTT News
GM kills its Saturn brand - Niagara Review
GM CEO Fritz Henderson: General Motors to shut down Saturn; Penske ... - New York Daily News
German scientists create 'steel Velcro' - Earthtimes

Reports: US-led Consortium Enters Race To Buy Ford's Volvo - RTT News

Posted: 04 Oct 2009 07:46 PM PDT

(RTTNews) - Sunday, the U.S.-led Crown Consortium has entered the race to acquire Volvo, the Swedish loss making auto unit from Ford, challenging the bid from Hong Kong-listed Chinese automaker Geely, according to reports.

Crown Consortium is fronted by former Ford director and veteran turnaround specialist Michael Dingman and Shamel Rushwin, a former executive at Ford and Chrysler.

Citing people close to the matter, reports said financing has been fully secured from U.S. private equity groups, but the U.S. led consortium is seeking additional backing from Swedish investors to signal its commitment to keep Volvo in the country.

Crown is reportedly talking to potential Swedish investors about taking up to a one-third stake in the consortium.

Geely is reported to have offered a little less than $2 billion for the loss making unit. The U.S.-led consortium is reported to have offered Ford significantly less than Geely, but both have similar plans for more than $3 billion of additional investment in Volvo, after completion of any deal.

People who are in knowledge of the situation said Geely has an edge due to its larger bid, but Crown is said to be the most credible alternative, should the Chinese automaker fail to clinch a deal.

A group known as the Jakob Consortium, led by Magnus Sundemo, head of Volvo's engineers' union, has also reportedly evinced interest, but it is said that the consortium is struggling to raise financing.

Ford is determined to sell Volvo, which lost $231 million in the second quarter, as part of its drive to focus on its core mass-market business. Citing a person involved reports said that the company is likely to take a decision in the next few weeks whether to enter exclusive talks with Geely. He and others said protection of the U.S. automaker's intellectual property was the biggest obstacle before concluding an agreement with Geely.

Similar concerns played a role in thwarting a bid this year by Beijing Automotive Industry Holding Co for 51% of General Motors' Opel division.

F declined $0.13 or 1.87% and closed Friday's regular trading at $6.84. After hours, F rose $0.05 or 0.73% and traded at $6.84.

by RTT Staff Writer

For comments and feedback: contact editorial@rttnews.com

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GM kills its Saturn brand - Niagara Review

Posted: 02 Oct 2009 03:27 AM PDT

Posted By THE ASSOCIATED PRESS

Posted 2 days ago

For those who expected General Motors' once-funky Saturn brand to live on with a new owner, there has been a sad twist. Saturn, once billed as a different kind of car company, appears as dead as Pontiac and Oldsmobile.

Penske Automotive Group Inc. announced Wednesday it is walking away a deal, unable to find a manufacturer to make Saturn cars when GM stops producing models after the end of 2011. GM then announced it would stop making Saturns and soon would close down the brand, just like it did with Oldsmobile and will do with Pontiac.

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GM CEO Fritz Henderson: General Motors to shut down Saturn; Penske ... - New York Daily News

Posted: 30 Sep 2009 03:18 PM PDT

BY Catey Hill
DAILY NEWS STAFF WRITER

Wednesday, September 30th 2009, 4:55 PM

GM will shutter Saturn

Have you ever owned a Saturn?

General Motors said Wednesday that it will shutter the Saturn brand.

This decision was made after Penske Automotive Group, which was in talks to take over Saturn, decided against this move amid concerns that it could not supply automobiles when the manufacturing contract with GM ended, according to The Associated Press.

"This is very disappointing news and comes after months of hard work by hundreds of dedicated employees and Saturn retailers who tried to make the new Saturn a reality," General Motors CEO Fritz Henderson said in a statement. "PAG's announcement explained that their decision was not based on interactions with GM or Saturn retailers."

So what exactly happened?

Penske was in talks with another manufacturer to produce the Saturn vehicles once GM stopped doing it. This deal fell through, and thus Penske pulled out of the deal to take over Saturn and its related dealerships.

"Without that agreement, the company has determined that the risks and uncertainties related to the availability of future products prohibit the company from moving forward with this transaction," Penske said in a statement.

Saturn and its dealerships will be phased out.

For now, Saturn owners can still go to a Saturn dealership to get repairs and service. Once those dealerships are phased out, owners can go to a General Motors dealership.

WITH NEWS WIRE SERVICES