General Motors has confirmed the deal to sell its Saab subsidiary to tiny Dutch sports-car maker Spyker Cars is going ahead, subject to a Swedish government loan guarantee.Spyker, which makes only a few dozen sports cars a year and has never made a profit
General Motors has confirmed the deal to sell its Saab subsidiary to tiny Dutch sports-car maker Spyker Cars is going ahead, subject to a Swedish government loan guarantee.
Spyker, which makes only a few dozen sports cars a year and has never made a profit, has agreed to pay GM at least $US74 million in cash.
The European Investment Bank will provide a €400 million ($800 million) loan guaranteed by the Swedish government.
An earlier pact with Spyker fell through late last year and GM had begun preparations to wind down Saab's operations. But both returned to the negotiating table in the new year.
The winding down activities have now been suspended, pending official endorsement of the deal from the Swedish government, which is expected early next month.
As part of the deal, GM will retain redeemable shares of $US326 million in Saab. The company has total assets, including plants, equipment and cash, of about €1 billion, and liabilities of €528 million.
As part of its financing package, Spyker will receive a $US50 million loan from Tenaci Capital, which is owned by Spyker chief executive Victor Muller. Spyker's chairman, the Russian banker Vladimir Antonov, has agreed to sell his shares to Tenaci.
Spyker intends to change its name to Saab Spyker Automobiles.
"I expect production volumes over 100,000 cars a year in the not too distant future," Mr Muller said, which should ensure Saab's return to profitability. He has also said he wants to restore the "Saabish" qualities that have inspired loyalty among Saab owners around the world.
The sale is the first in what has proved to be a testing time for GM in disposing of its fringe brands as part of its bankruptcy reorganisation last year.
A deal to sell its Saturn division to Penske Automotive Group collapsed at the last minute; the sale of its Opel-Vauxhall division in Europe was announced but later reversed; and the Hummer brand has been sold to a Chinese buyer in a deal that hasn’t yet gone through.
