Saab saved by Spyker

General Motors agreed last night to sell its Saab Automobile brand to the Dutch car maker Spyker for $400 million.  Spyker, which manufactures luxury sports cars, will form a new companyÔÇöSaab Spyker AutomobilesÔÇöto take over the brand. The Zeewold, Netherlands-based company employs 110 people and produces between 30 and 50 cars per year, which each sell for around $200,000. Saab, which currently employs 3,400 workers, last year manufactured 24,000 cars. Spyker is estimating that it will make 100,000 Saabs a year, enough to be profitable. It is believed that production of the cars will remain in Sweden. As part of the deal with Detroit, Michigan-based GM, Spyker is hoping to secure a loan from the European Investment Bank worth Ôé¼400 million, which the Swedish Government has agreed to guarantee. Commenting on the deal, Victor R. Muller, Spyker's CEO, stated: "We are very much looking forward to being part of the next chapter in Saab's illustrious history. Saab is an iconic brand that we are honoured to shepherd. ÔÇ£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.ÔÇØ He concluded: ÔÇ£Spyker Cars will provide Saab with the backing required to compete as a competitive global brand along with an entrepreneurial leadership team sensitive to the uniqueness, heritage and individuality of the Saab brand.ÔÇØ Jan ├àke Jonsson, CEO of Saab Automobile, said: ÔÇ£TodayÔÇÖs news is great for SaabÔÇÖs customers, dealers, suppliers and employees around the globe. The level of passion and support shown to Saab over recent months has been remarkable and I would like to take this opportunity to thank all of those people who continued to believe that Saab deserved a future. ÔÇ£Now we aim to get back to the execution of our business plan and with the continued support of our employees and business partners I am confident we will succeed.ÔÇØ GM had already begun to wind down the companyÔÇÖs operations, with production scheduled to end this Friday. However, it suspended the wind-down several days ago, when an agreement with Spyker looked to be on the cards. Saab, which has failed to make a profit since 2001, was put up for sale as part of GMÔÇÖs restructuring programme following its exit from bankruptcy protection in July last year. Several parties declared an interest, including the Swedish car maker Koenigsegg and Bernie Ecclestone, the Formula One motor racing tycoon; however, the all-important deal continued to elude GM. GM previously rejected an offer from Spyker and has not disclosed what revisions the Dutch firm has since made to its bid. Spyker must now quickly sign deals with GM or other automakers to design and build new Saabs to avoid having to compete against global automakers with much lower costs that can cram cars with features and sell them more cheaply. The sale is expected to close by mid-February.┬á