Spyker saves Saab

Saab was rescued from the scrap yard of auto history when General Motors agreed to sell the struggling unit to Dutch sports-car maker Spyker Cars NV.

GM didn’t disclose financial details, but a source familiar with the matter said Spyker would buy Saab for $400 million, $74 million of which is in cash, with the rest in deferred shares.

The deal is subject to a Swedish government guarantee on a 400 million euro ($564 million) loan from the European Investment Bank, which Sweden told GM it was reviewing.

The Swedish carmaker – which has an enthusiastic following among auto enthusiasts taken with its distinctive, quirky style – has failed to make money for much of the past two decades as GM was unable to find a global audience for the cars.

But GM grew wary of selling Saab and its new designs for fear of giving a potential rival a technological edge.

“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,” GM vice president John Smith said in a statement.

Despite years of haemorrhaging money, the 60-year old Swedish group has many fans, some who believe it could be profitable with the right owner.

“It’s a really brilliant brand. It’s probably one of the biggest brand mismanagement stories in the history of the automotive industry,” said Tim Urquhart, analyst at IHS Global Insight.

“Saab could have been the Swedish Audi if it had been taken on in the right way 20 years ago. It’s been completely mismanaged, underinvested in by people who don’t understand what the brand means, and what it has the potential to mean.”

Whether the right owner is Spyker is open to question, analysts say.

Spyker, which only produces several dozen handmade sports cars a year, hopes to benefit from Saab’s technical resources and distribution network. Saab will get funds to survive and an injection of entrepreneurial spirit.