Tiny Spyker takes over much bigger Saab

Wednesday 27 January 2010

Dutch luxury car maker Spyker is to buy Swedish car firm Saab from General Motors, after weeks of negotiations and an intense final five days of marathon talks.

Spyker is to pay GM $74m in cash and $326m in preference shares for Saab. Spyker is also negotiating a €400m loan from the European Investment Bank which the Swedish government has agreed to guarantee.

GM has now stopped winding down the Swedish car maker, and said it expects to complete the deal in mid-Februrary. The new company will be named Saab Spyker Automobiles and will be listed on the Amsterdam stock exchange.

Loss making

According to news agency Reuters, Saab has failed to make money for much of the past 20 years. Spyker too has not made a profit since it was reborn as a brand in 2000.

Spyker produced just 43 hand-made cars in 2009 with a workforce of around 100. Saab has 3,400 workers and produced 40,000 cars last year.

Spyker CEO Victor Muller was quoted as telling a news conference in Stockholm: 'Under normal circumstances, probably Saab would have been buying Spyker.... but these are abnormal times in the car industry and unusual transactions are taking place.'

Spyker will respect the 'uniqueness, heritage and individuality' of the Saab brand, he said.

© DutchNews.nl

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