News

STOCKHOLM, SWE. - Saab-owner Swedish Automobile AB says it has signed a deal to sell 582 Saab cars to a Chinese company for euro13 million ($18.3 million CDN).

The company, previously known as Spyker Cars, claimed the deal would provide the ailing car brand with enough funds to pay salaries to its employees, but didn't reveal the name of the Chinese company.

Last week, Saab said it had run out of cash to pay its 3,700 workers, raising doubts over how long the brand could survive.

Swedish Automobile said Monday talks to raise more cash by selling and leasing back Saab's real estate continue.

It said Russian businessman Vladimir Antonov is also still interested in investing in Saab, but has failed to receive the necessary approval from the European Investment Bank.

By the Associated Press

The World's Largest Free Automobile Event Makes Canadian Debut, June 20-24 2011

TORONTO, ON - From Monday June 20 through Friday June 24, Brookfield Place in the heart of Toronto's downtown financial district will be transformed into a free to enjoy auto extravaganza; showcasing a selection of the very latest vehicles. Established in London, Los Angeles and New York; June 2011 marks the first time that Motorexpo - the world's largest free automobile event - is presented on Canadian soil, and organizers are anticipating a fully charged first showing that will lead to Motorexpo becoming a major fixture on Toronto's business and social calendar.

Delivered in partnership with Brookfield Office Properties, attendees to this inaugural annual auto event will have the chance to check-out the hottest new automotive trends in a relaxed, business environment; enjoy unparalleled access to vehicles from many of the world's top manufacturers and even get behind the wheel and test drive several new models.

Manufacturers set to roll out their hottest rides for the 2011 Toronto Motorexpo include Buick, Cadillac, Chevrolet, Engineered Automotive, GMC, Jaguar, Land Rover, Porsche and Saab to name just a few; while an additional highlight will be a cavalcade of E-Type Jaguars descending on Brookfield Place on Monday June 20 to mark the 50th anniversary of this most iconic of vehicles.

"We are delighted to be producing our first ever Canadian showcase and look forward to bringing our unique free to attend auto show to Toronto for local residents, the downtown business population and all automotive enthusiasts to enjoy," said Motorexpo CEO Graeme Carver. "Our unrivalled format allows everyone the chance to get up close and personal with the latest vehicles that many of the world's best manufacturers have to offer!"

"Brookfield is proud to welcome Motorexpo - an exhibition of the newest and most dynamic automobiles from around the globe - to Brookfield Place and the city of Toronto" said Brookfield Office Properties Canadian Commercial Operations President & CEO Jan Sucharda. "Motorexpo has established itself as one of the more popular annual exhibits at our properties in New York City and Los Angeles, and Brookfield is committed to enhancing the amenities and overall experience at our downtown Toronto properties. We hope that our tenants, visitors and the residents of Toronto enjoy this up-close display of what many of the world's leading motor manufacturers have to offer."

The Toronto Motorexpo is modeled after the successful Canary Wharf London Motorexpo that has taken place annually since 1996. In the last two weeks, the London Motorexpo welcomed more than 400,000 visitors, making it the United Kingdom's largest auto show event. In addition, the Motorexpo is now a firm fixture on the Los Angeles and New York Calendars having been produced for the second annual showing earlier this year in California and set to return to the World Financial Center in Lower Manhattan for the 4th annual New York Motorexpo from Sunday September 18 through Friday September 24, 2011.

ASSOCIATED PRESS

TOKYO — Mazda Motor Corp. plans to leave its joint venture with Ford Motor Co. and stop building cars in the U.S., the Nikkei financial daily reported Friday.

Mazda and Ford operate the AutoAlliance International plant in Michigan as a 50-50 partnership. Citing unnamed company sources, the Nikkei said Mazda is considering selling its stake to Ford as the Japanese automaker tries to restructure its global production.

Mazda cars sold in the U.S. will be shipped from Japan and Mexico starting around 2013, according to the Nikkei.

In response, Mazda issued a short statement saying the report was not based on information it had released.

“Mazda and Ford are jointly studying various possibilities for AAI, and we have nothing to announce at this time,” Mazda said. “We do not comment on speculation.”

The plant in Flat Rock, Michigan manufactures the Mazda6 mid-size sedan and the Ford Mustang. It employs about 1,700 workers, according to Ford.

The U.S. automaker has essentially agreed to maintain current worker levels by expanding the models it builds at the facility, Nikkei said.

The two companies loosened their longtime auto alliance last year when Ford cuts its stake in Mazda from 11 per cent to 3.5 per cent. At the time, Mazda President Takashi Yamanouchi insisted that the two companies would continue to co-operate through joint ventures and technology exchanges.

Mazda’s latest financial results revealed tough times for the Hiroshima-based company.

Its net losses swelled to 60 billion yen ($742 million) in the fiscal year ended March 31, from 6.5 billion yen the previous year. The company blamed a persistently strong yen and lacklustre sales in Japan, as well as the March 11 earthquake and tsunami that disrupted auto production.

DETROIT- With a few computer keystrokes in an office at its headquarters, Chrysler Group LLC sent $7.6 billion to the U.S. and Canadian governments on Tuesday, paying off most of the bailout money that saved the company from financial disaster just two years ago.

The repayment - expected for weeks - is a huge step in the automaker's unlikely comeback. Chrysler went from a company that almost ran out of cash and survived a 2009 bankruptcy to one that is revamping its aging lineup and last quarter posted its first net profit in five years, a modest $116 million.

"I think this is going to close a painful and necessary chapter in our history," Chrysler CEO Sergio Marchionne said Monday at the opening celebration of a dealership in Detroit.

For Marchionne and Chrysler workers, the payoff marks partial freedom from government ownership. But it also means the company must stand on its own and continue to overhaul a lineup that's still depends on old Chrysler designs and larger vehicles that have fallen out of favor due to high gasoline prices.

"We celebrate and then we move on," said Marchionne, who is also CEO of Fiat SpA, the Italian automaker which was given control of Chrysler by the U.S. government. "We've got a long way to go."

Chrysler took $10.5 billion from the U.S. government to survive two years ago, and earlier had repaid some of the money. On Tuesday, it retired a $5.9 billion balance on the U.S. loans and $1.7 billion to the governments of Canada and Ontario.

To pay off the governments, Chrysler raised $3.2 billion through a bond sale and took out $3 billion in lower-interest bank loans. It also will use a $1.3 billion investment from Fiat.

But government ownership doesn't end with the loan repayment. The U.S. Treasury still owns 8.6 percent of Chrysler, which it got in exchange for the bailout. About $2 billion of the government aid went to parts of Chrysler that were left behind in bankruptcy. That money hasn't been repaid. Some of it could be recouped when the government sells its Chrysler stock in an initial public offering. But the government concedes it's unlikely to get all of the money back.

Chrysler was eager to pay back its loans in part because of the governments' high interest rates of around 12 percent, which cost the company $1.2 billion last year. The interest rates on the new loans and bonds are 6 to 8 percent, saving Chrysler $300 million in payments per year. It also wants to shed its government ownership because some customers object to the bailout.

The repayment, though, lifted the morale of Chrysler workers and dealers who just two years ago came close to losing everything.

Carl Galeana, who runs Chrysler and Fiat dealerships in Michigan and Florida, said Marchionne has done everything he promised to save the company. Vehicles such as the Jeep Grand Cherokee SUV, which was overhauled by Chrysler, have helped the company return to profitability.

But Galeana and others know the company's future success depends on models from Fiat, especially in small and midsize segments where Chrysler remains unproven.

"What we have to prove to the public is we have damn fine products," he said. "That's the kind of stuff that's coming through the pipeline."

Chrysler's action is the latest in the comeback of the Detroit auto industry after the recession put its future in doubt. General Motors Co. also went through bankruptcy and got a $49.5 billion U.S. bailout in exchange for giving the government a 61 percent equity stake. The Treasury Department now owns 26.5 percent of GM after selling part of the stake in November.

The third Detroit automaker, Ford Motor Co., didn't seek a bailout.

It's not the first time Chrysler had to be rescued by the U.S. government. In the early 1980s the company led by legendary pitchman Lee Iacocca, paid off $1 billion in government guaranteed loans in three years.