Having been a Saab driver for a number of years, I am happy to report that Saab will live on. Was I premature in my decision to dump my V6 AERO. Not really….it was heavy on fuel and cost more in insurance for a number of reasons.
Here is the article regarding the deal (source: Left Lane News):
After months of intense negotiations with various parties, General Motors has finally reached a binding agreement to sell Saab to Dutch supercar manufacturer Spyker. The deal, which would save nearly 10,000 direct and related jobs in Sweden and abroad, awaits only regulatory issues in Europe and the United States, as well as confirmation of a loan from the European Investment Bank.
Early reports suggest that the deal is worth $74 million in cash and $326 million in preferred stocks from the new Saab Spyker Automobiles that Spyker intends to form. GM says it expects to complete the sale in mid-February.
“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,” said John Smith, GM vice president for corporate planning and alliances, said in a statement. “General Motors, Spyker Cars, and the Swedish government worked very hard and creatively for a deal that would secure a sustainable future for this unique and iconic brand, and we’re all happy for the positive outcome.”
In an ever-consolidating auto industry, Spyker’s decision to purchase Saab is considered a major gamble by many.
“Marginal players will continue to be marginalized,” Fiat CEO Sergio Marchionne told reporters at a separate event in Stockholm.
Marchionne has long been a proponent of creating fewer brands controlled by a handful of dominant players, a business plan he has continued to execute with moves like Fiat’s acquisition of Chrysler last year.
Spyker itself was a late entrant into the bidding for Saab; the automaker’s CEO’s interest in the brand only became public after Koenigsegg’s failed bid late last year. GM and Spyker were initially unable to reach an agreement, prompting the Detroit automaker to begin winding down Saab’s operations. Yet Spyker CEO Victor Muller was persistent in his efforts and finally reached terms of agreement that worked for GM – and terms that defied doubt cast by new GM CEO Ed Whitacre Jr.
“Throughout the negotiations, GM has always had the hope to find a solution for Saab that would avoid a wind down of the brand,” said Nick Reilly, president, GM Europe, in a release. “We’ve worked with many parties over the past year, including governments and investors, and I’m very pleased that we could come to such a good conclusion, one that preserves jobs in Sweden and elsewhere. GM will continue to support Saab and Spyker on their way forward.”
It’s expected that more news on Spyker’s business plan for Saab will emerge in the coming weeks prior to the sale’s closure in mid-February.
