Last Auto News – Saab is Saved: GM Finally Sells to Spyker

Last Auto News –

Saab’s slow, painful trek toward death has finally come to an end – but not in the way anyone expected. Believe it or not, after months of failed negotiations, the Swedish brand has finally found a buyer in Dutch sports-car maker Spyker.

Bloomberg explains: “Spyker agreed to pay $74 million in cash and $326 million in preferred shares in the company that would emerge from the deal, according to the Dutch company.” They go on to note that the transaction isn’t yet complete – it’s still “subject to Sweden agreeing to guarantee a 400 million-euro ($563 million) European Investment Bank loan for Saab.”

The deal is expected to close in mid-February, when Spyker will likely form a new company called Saab Spyker Automobiles.

The sale comes after a long string of offers, all of which were rejected by Saab parent company General Motors. Previous bidders included Merbanco Inc. and Koenigsegg Group AB (backed by Beijing Automotive Industry Holding Co.). After a deal fell through in November, the latter paid $200 million to buy the rights to use Saab technology in its vehicles.

CNN Money notes that GM will continue to provide parts and support for Saab’s previously planned model launches, which include the redesigned 9-5 and the new 9-4X SUV. Those who already own Saabs probably won’t notice the change. According to CNN, “Saab Spyker is expected to take over relationships with Saab’s U.S. dealer network … Warranty support will continue without interruption.”

Saab’s resurrection is certainly good news for Swedish-car owners and loyalists. But it has a much more profound impact on those who are even more closely tied to the automaker. Bloomberg says the sale “may save many of the 3,500 jobs at Saab’s main factory in Trollhaettan in southwestern Sweden.”

In addition to saving jobs, the sale will create even more. “Spyker’s purchase of Saab means the company will need to hire more workers to increase production capacity so the new company can build Saabs and a higher volume of Spyker vehicles,” writes Auto Week. “Muller has said Spyker plans this year to make about 100 of its supercars that will sell for $200,000 to $250,000 each.”

If you’re in the market for a new car, check out the U.S. News rankings of this year’s best cars as well as this month’s best car deals.