GENERAL MOTORS has agreed to sell its Saab unit to Dutch specialist sportscar maker Spyker Cars in a deal that will save the 72-year-old Swedish brand. Spyker has agreed to pay $74 million (€52.5 million) in cash and $326 million in preferred shares in the company that would emerge from the deal, according to the Dutch company in a statement to the Amsterdam stock exchange.
The transaction, subject to Sweden agreeing to guarantee a €400 million European Investment Bank loan for Saab, is expected to be sealed in February. If it gets the support of the Swedish government the sale may save many of the 3,500 jobs at Saab's main factory in Trollhaettan in southwestern Sweden.
The move is also likely to save jobs here, where the brand has a network of 14 dealers across the State. The brand is distributed in Ireland by the OHM Group. A spokesman for the group said they were “delighted with the news and very relieved. We had been confident that it would happen and our dealers have remained loyal throughout the recent events. Despite the GM initial decision, product development work has continued and the new 9-5 is ready to go on the market,” he said.
Spyker was not the only bidder for the Swedish brand. Others included Genii Capital, the private-equity firm that teamed up with Formula One’s Bernie Ecclestone. It withdrew its offer on Monday, leaving Spyker as the sole bidder. (Additional reporting: Bloomberg) Motoring Editor