IMPORTANT NEWS: National Electric Vehicle Sweden has agreed to buy the assets of Saab Automobile and the sale is expected to be finalized during the summer.

Monday, August 27, 2012

Spyker partners up with Youngman to make luxury Saab based vehicles

My first thought was that this had to be an old press release from 2011 that somehow had found its way back into the headline of Automotive News Europe, but believe it or not, Spyker and Youngman have actually agreed to form yet another partnership. This time to cooperate in using the license to the Saab Pheonix architecture, which Youngman bought in September 2011, to develop and produce a number of luxury vehicles.

According to TTELA, CEO of Spyker and former CEO of Saab Automobile, Victor Muller, says that the cars will draw inspiration from the Saab design and the man in charge of the design will be no other than Jason Castriota, former design chief of Saab.

"There will definitly be a lot of Saab in the cars, but they will be more premium. We will continue where we left off," Victor Muller says.

Youngman will invest several million Euros and the first car can be ready to launch at the end of 2015.

Everybody who have followed the Saab saga the past years will see the similarities with several other framework deals that have been signed between Spyker and other companies, deals that somehow all ended up with nothing.  Do we believe in this last deal?

The Spyker press release:

Press release

Zeewolde, the Netherlands, 27 August 2012 -- Spyker N.V. ("Spyker") announces that it signed a Framework Agreement with the Chinese car manufacturer Zhejiang Youngman Passenger Car Group Co, Ltd ("Youngman") today.

Today's Framework Agreement entails the following :

* Subject to satisfactory completion by Youngman of a due diligence on Spyker and the satisfaction of relevant conditions to be set forth in the definitive transaction documentation, Youngman will invest Euro 10,000,000 in Spyker of which approximately Euro 6,700,000 as subscription for such number of Class A shares in Spyker as will constitute 29.9% of the issued and outstanding share capital of Spyker on a fully diluted basis for a price of Euro 0.05 per share, and the remaining approximately Euro 3,300,000 shall be provided to Spyker in the form of a shareholder loan. Youngman undertakes to not exceed the 29.9 percent threshold and therefore has no ambition to make a mandatory offer on all outstanding shares in Spyker.

* Youngman shall pay the first tranche of the share subscription in an amount of Euro 2,300,000 to Spyker within 7 days as of today.

* Youngman shall pay the remaining Euro 7,700,000 no later than 45 days after the execution of the definitive transaction documentation.

* Youngman and Spyker will jointly invest in a Joint Venture to be called Spyker P2P B.V. ("Spyker P2P") in which Youngman will make a cash contribution in the amount of Euro 25,000,000 and will hold 75% of the shares whilst Spyker will make its contribution by transferring the technology it developed for the Spyker D8 Peking-to-Paris, a $ 250,000 four door Super Sports Utility Vehicle ("SSUV") ,as well as the Spyker trademarks and will hold 25% of Spyker P2P's shares. Youngman's contribution shall be paid in installments in accordance with the development and manufacturing plan of the SSUV with the objective of launching that car by the end of 2014. Additional models on the SSUV technology are being contemplated.

* Youngman and Spyker will jointly incorporate a second Joint Venture to be called Spyker Phoenix B.V.("Spyker Phoenix") in which Youngman will contribute the rights to the Phoenix platform as developed by Saab Automobile AB in 2010/2011 to which Youngman acquired a license in 2011 as well as provide all required funding. Youngman will hold 80% of Spyker Phoenix' shares whilst Spyker will hold 20% of Spyker Phoenix' shares which shareholding will be exempt from dilution.
Spyker Phoenix shall develop and manufacture a new full range of premium car models based on the Phoenix platform which models will be positioned higher than the comparable Saab models were. Spyker Phoenix products may be manufactured in Europe and China as the case may be.
Youngman and Spyker agree to provide all the (manufacturing) technologies owned by each of them to Spyker Phoenix for its use free of charge.

Victor R. Muller, Spyker's CEO said:" Since the regretful demise of Saab Automobile AB in December 2011,we have been investigating the possibilities to continue our intended cooperation with Youngman to the benefit of both companies thereby utilizing the assets, both tangible as well as intangible, each of us has at its disposal. With this Framework Agreement, Youngman and Spyker lay the foundation for an intense cooperation whereby we will pursue the objectives we each had in mind when we were forging our cooperation as partners in Saab Automobile AB. We clearly share the vision on how to shape Spyker's future as partners going forward ."

Pang Qingnian, Youngman's CEO said:" We have felt all along that a cooperation with Spyker had to be pursued, even after we both unjustifiedly lost the opportunity to restructure Saab Automobile AB as a going concern and jointly develop its business, however, we secured Saab Automobile's technology. With this Agreement, many of our original intentions with the "Saab" brand will still take shape and we are excited to help Spyker further develop its vehicle model range with the SSUV and vehicles based on Saab Automobile's Phoenix platform technology both in China as well as in the rest of the world."