US automaker General Motors said Tuesday it had
agreed to sell its Saab brand to Dutch luxury sports car
manufacturer Spyker.
DETROIT, Michigan (AFP) - – General Motors on Tuesday announced
a "binding agreement" to sell its Saab division to Dutch luxury
sports car maker Spyker, in an 11th-hour deal saving 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.
GM officials said the deal calls for Spyker to pay 74 million
dollars in cash and allow GM to retain redeemable preferred shares
worth an estimated 326 million dollars.
Assuming quick action, the transaction is expected to close in
mid-February, according to GM, which said 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.
"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."
Spyker said the terms call for an installment of 50 million
dollars by the expected closing date of February 15 and 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," said Spyker chief executive
Victor Muller.
"Saab is an iconic brand that we are honored to shepherd. We are
delighted to have secured the jobs and livelihoods of thousands of
loyal Saab employees, suppliers and dealers and to have given
reassurance to the 1.5 million Saab drivers and enthusiasts around
the world."
Sweden will guarantee a loan of 400 million euros (563 million
dollars) from the European Investment Bank to support the
transaction, Swedish Enterprise Minister Maud Olofsson said in
Stockholm.
"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 of GM Europe.
"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."
The announcement appears to end a series of on-again, off-again
deals for the lengendary Swedish automaker, amid intense fears of
job losses in the Scandinavian country.
In December, GM nixed a proposed deal with Spyker following the
withdrawal of a bid from Swedish sportscar maker Koenigsegg Group
AB with Chinese backing.
GM has been undergoing a massive restructuring since emerging
from bankruptcy with support from the US and Canadian governments
last year. The company has decided to end its Saturn and Pontiac
brands in the United States and has reached a deal to sell its
Hummer brand to a Chinese buyer.
GM also agreed to sell some Saab assets to China's Beijing
Automotive Industry Holding Co.
Saab employs some 3,400 people in Sweden and sold just over
93,000 cars worldwide in 2008.
Up to an estimated 15,000 jobs were seen as at risk in a Saab
shutdown, including those of suppliers and subcontractors. A Saab
liquidation also could impact Sweden's other carmaker Volvo, owned
by US-based Ford Motor Co.
Under GM's stewardship spanning almost two decades, Saab rarely
posted a profit and last year lost 3.0 billion kronor, the
equivalent of 241 million euros, or 341 million dollars at the
time.
GM in November reversed plans to sell its European Opel/Vauxhall
division and to restructure those operations on its own. Analysts
noted that Opel, unlike Saab, is integrated into GM's global
operations.
Saab's history as an automaker dates back to the 1940s, when the
first cars were produced by the Swedish aircraft maker Svenska
Aeroplan Aktiebolaget or SAAB. GM acquired Saab Automobile in
1990.