GM's $400m deal with Spyker saves Saab
Wednesday 27 January 2010
General Motors agreed last night to sell its Saab Automobile brand to the Dutch car-maker Spyker after more than 12 months of trying to offload the Swedish marque.
Spyker, a company that was liquidated in the 1920s only to be reborn as a luxury sports car specialist in 2000, said it would pay GM $74m in cash and $326m in deferred shares for Saab.
Spyker only joined the bidding last month, but a sale was already looking so unlikely that within weeks GM began to wind the company down, including its factory at Trolltattan. It suspended the shutdown yesterday.
Under the agreement, Spyker will form a new company – Saab Spyker Automobiles – to take over the brand. Saab Automobile is seeking to borrow €400m ($564m) from the European Investment Bank, a loan that Sweden said yesterday it would guarantee. If all goes to plan, the deal will be done by the middle of next month.
The purchase will transform Spyker, which currently employs 110 people and produces between 30 and 50 cars per year, each selling for about £150,000. Saab employs 3,400 workers and, although its sales dropped by half last year, it still built 24,000 cars.
After Spyker's first offer, GM said before Christmas that Saab had no future. Within three weeks there were three new bids: one from Spyker; a pitch from the Formula One tycoon Bernie Ecclestone and Genii Capital, and one from a Swedish consortium.
Board creates magnetic field to achieve lift
Like Madonna, Sister Cristina Scuccia's video is also set in Venice
Singer says the track was 'force-fed down people's throats'
techThe original free dating app will remain the same, developers say
Endangered species spotted in a creek in the Qinling mountains
Trend which requires crisps, a fork and a strong stomach is sweeping Mexico's streets
Some experiencing postnatal depression don't realise there is a problem. What can be done?
- 2 Banksy arrest hoax: Internet duped by fake report claiming street artist's identity has been revealed
- 3 Drink alcohol and eat meat to improve male fertility - but cut down on coffee, studies suggest
Ukraine crisis: Donetsk 'tactical missile' explosion at factory sends blast wave across rebel-held city
Jack the Ripper: Scientist who claims to have identified notorious killer has 'made serious DNA error'
Oscar de la Renta dead: Legendary US fashion designer dies after long cancer battle aged 82
Banksy arrest hoax: Internet duped by fake report claiming street artist's identity has been revealed
Super-sized ships arrive in Britain: How big can they get?
Cameron is warned 'no possibility' of UK reducing immigration and that bid to bring in quota on migrant workers would be illegal
Residents should throw a street party and mix with immigrant neighbours, councils told
Russell Brand threatened with arrest after filming outside Fox News headquarters
London bus driver 'kicks gay couple off for kissing'
Lord Freud: Tory welfare minister apologises after saying disabled people are 'not worth’ the minimum wage
Lord Freud hangs on as MPs of all parties 'call for his head' over disability comments
iJobs Money & Business
£23000 - £26000 Per Annum: Clearwater People Solutions Ltd: Our client is curr...
£25 - 30k: Guru Careers: A Corporate Actions Administrator / Operations Admini...
£18 - 23k + Benefits: Guru Careers: We are seeking a Customer Service Executiv...
£60 - 65k + Benefits: Guru Careers: We are seeking a ASP.NET Web Developer / ....