Dutch firm Spyker buys Saab from GM

27 January 2010

Spyker Cars NV, a small Dutch car maker, has purchased Saab from General Motors (GM) in a bid to generate profit from the plunging brand.

GM signed a deal on Tuesday to sell Saab to Spyker for $74 million (£45.5 million) in cash plus $326 million worth of preferred shares in Saab.

The deal is backed by a $550 million loan guaranteed by the Swedish government from the European Investment Bank.

Spyker's purchase of Saab - which has been on the losing end since GM's takeover - gives the latter a new lease of life.

The Detroit car manufacturer bought a 50% stake and management control in Saab for $600 million in 1989. It gained full ownership of the brand in 2000 for a further $125 million.

Around 3,500 people in Sweden work for Saab, and the brand was facing liquidation under GM's restructuring plans.

GM will continue providing vehicles and parts to the new company, to be known as Saab Spyker Automobiles NV.

Spyker CEO Viktor Muller admitted that trying to make Saab profitable was a huge challenge, but said he is confident it can be done.

"I think what we can bring to the table is entrepreneurship and tenacity," he said.

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