General Motors (GM) on Tuesday announced a “binding agreement” to sell its Saab division to Dutch luxury sports car maker Spyker, giving an 11th-hour reprieve to the storied Swedish brand.
As part of the agreement, Spyker will form a new company, Saab Spyker Automobiles, which will carry the Saab nameplate forward and avert the planned liquidation of Saab.
The announcement appears to end a series of on-again, off-again deals for the Swedish automaker amid intense fears of job losses in the Scandinavian country.
PHOTO: EPA
GM officials said the deal calls for Spyker to pay US$74 million in cash and allow the US giant to retain redeemable preferred shares worth an estimated US$326 million.
Assuming quick action, the transaction is expected to close next month, GM said, adding that it would suspend its previously announced wind-down activities at Saab.
“Today’s announcement is great news for Saab employees, dealers and suppliers, great news for millions of Saab customers and fans worldwide and great news for GM,” GM vice president for corporate planning and alliances John Smith said.
Spyker said the terms call for an installment of US$50 million by the expected closing date of Feb. 15 and US$24 million to be paid on July 15.
“We are very much looking forward to being part of the next chapter in Saab’s illustrious history,” Spyker chief executive Victor Muller said.
Sweden will guarantee a loan of 400 million euros (US$563 million) from the European Investment Bank to support the transaction, Swedish Enterprise Minister Maud Olofsson said in Stockholm.
Under GM’s stewardship, spanning almost two decades, Saab rarely posted a profit and last year lost 3 billion kronor (US$341 million at the time).
“While many around the globe, especially in Sweden, will be thrilled to see the quirky but much-loved Saab brand saved, the new owners have their work cut out for them,” said Michelle Krebs, analyst at the research firm Edmunds.com. “It will not be an easy road to keep the tiny company going and growing in the intensely competitive world market.”
Saab employs some 3,400 people in Sweden and sold just over 93,000 cars worldwide in 2008.
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