GM sells Saab brand to Spyker Cars

Spyker is taking on a brand which has seen sales in freefall, down almost 60 per cent in Western Europe from 63,412 units in 2008 to 25,723 last year. December sales in Europe fell even further, down 63 per cent.

GM will receive $74 million in cash for the brand, paid in two installments, and $326 million in preferred shares of Saab, according to an AP report.

Spyker is paying for Saab with a loan of up to 4 billion kronor ($550m) from the European Investment Bank, which is backed by the Swedish government and subject to approval by the European Commission. There is also financing of 150 million-euro loan from investment firm GEM Global Yield Fund.

"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 John Smith, GM vice president for corporate planning and alliances.

Saab Spyker Automobiles

As part of the agreement, Spyker intends to form a new company, Saab Spyker Automobiles.

GM said the Swedish government is at present reviewing the transaction and the related request for guarantees of a Saab Automobile loan that has been requested from the European Investment Bank.

All going well, the transaction is expected to close in mid-February. GM said the previously announced wind down activities at Saab will be immediately suspended, pending the close of the transaction.

"Throughout the negotiations, GM has always had the hope to find a solution for Saab that would avoid a wind down of the brand," added Nick Reilly, president, GM Europe.

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