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NEWS: Spyker saves Saab from certain death

Posted by Hootan Mahallati | January 27, 2010 | In news saab

Saab 9-5

The saga of Saab has had enough ups and downs over the past few months to fill an entire magazine. Just last week, GM declared Saab dead and reported that it was winding down the factory in Sweden.

Well, not so fast: giving new meaning to the term "11th hour", GM has now confirmed the sale of Saab to small Dutch sports car maker Spyker, which had already tried - and failed - to acquire Saab. The $400M deal sees Saab paying GM $74M, $50M when the deal is closed and another $24M on 15 June, 2010. Additionally, GM will retain a $326M share in Saab. The stake does not give GM much voting power, but allows GM to partake in future profits should there be any.

"We are very much looking forward to being part of the next chapter in Saab's history. The next task is for Saab to become profitable in its own right, and that's not an easy task. But it is one that I think can be achieved," said Victor Muller, CEO of Spyker.

Time will tell whether this new lease on life will convert into a long-term staying power for Saab. The once-quirky company, which lost its magic touch during the neglectful GM ownership, does have a new Saab 9-5 and 9-4X crossover SUV on hand, but being bought by a tiny sports car company does not exactly help the economies of scale of an already low-volume manufacturer.

[Source: Automotive News]

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