Ctsz Saab gets reprieve as GM seals sale to Spyker
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.
GM officials said the deal calls for Spyker to pay 74 million US dollars in cash and allow the US giant to retain redeemable preferred shares worth an estimated 326 million US dollars.
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 US dollars at the time.
“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 GM vice president for corporate planning and alliances John Smith.
Saab gets reprieve as GM seals sale to Spyker
General Motors announced a “binding agreement” to sell its Saab division to Dutch luxury sports car maker Spyker,classic ugg boots, giving an 11th-hour reprieve to the storied Swedish brand.
“It will not be an easy road to keep the tiny company going and growing in the intensely competitive world market.”
GM also agreed to sell some Saab assets to China’s Beijing Automotive Industry Holding Co.
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.
“While many around the globe, especially in Sweden, will be thrilled to see the quirky but much-loved Saab brand saved, the new owners have their work cut out for them,” said Michelle Krebs, analyst at the research firm Edmunds.com.
Sweden will guarantee a loan of 400 million euros (563 million US dollars) from the European Investment Bank to support the transaction, Swedish Enterprise Minister Maud Olofsson said in Stockholm.
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As part of the agreement, Spyker will form a new company, Saab Spyker Automobiles, which will carry the Saab nameplate forward and avert the planned liquidation of Saab. 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. “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.” “We are very much looking forward to being part of the next chapter in Saab’s illustrious history,” said Spyker chief executive Victor Muller. Assuming quick action, the transaction is expected to close in mid-February, according to GM,The North Face Footwear, which said that it would suspend its previously announced wind-down activities at Saab. Saab employs some 3,400 people in Sweden and sold just over 93,000 cars worldwide in 2008. “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.” The announcement appears to end a series of on-again,timberland mens boots, off-again deals for the Swedish automaker, amid intense fears of job losses in the Scandinavian country. |
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.
Spyker said the terms call for an installment of 50 million US dollars by the expected closing date of February 15 and 24 million to be paid on July 15.