Today's News by Jack Nerad for Driving Today

Quirky Cars That Fans Rejoice

Monday, February 1, 2010

Hey, you, college professors! Yes, you know who you are, the guys with the patches on the elbows of your corduroy sport coats. Well, you can rest easy: Your car brand of choice, Saab, isn’t going to the Land of Nod after all. 

After General Motors’ bankruptcy clouded the Swedish brand’s future, many feared it would vanish, but a last-ditch effort by GM, Spyker Cars NV and the Swedish government has resulted in a binding agreement on the purchase of Saab Automobile AB by the Netherlands-based specialty car manufacturer. As part of the agreement, Spyker intends to form a new company, Saab Spyker Automobiles, which will carry the Saab brand forward. 

The sale will be subject to customary closing conditions, including receipt of applicable regulatory, governmental and court approvals. But since the Swedish government was a party to the negotiations, it is expected the sale will go through as planned.

“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,” said John Smith, GM vice president for corporate planning and alliances.

The Swedish government is reviewing the request for the guarantee of a Saab Automobile loan sought from the European Investment Bank. Assuming quick action of this, the transaction is expected to close in mid-February, and the previously announced wind-down activities at Saab will be immediately suspended, pending the close of the transaction. So for the time being, Saab fans can cease hoarding potentially hard-to-find parts.

“Throughout the negotiations, GM has always had the hope to find a solution for Saab that would avoid a wind-down of the brand,” said Nick Reilly, president of GM Europe, a company that General Motors also contemplated selling in the throes of bankruptcy. “We’ve worked with many parties over the past year, including governments and investors, and I’m very pleased that we could come to such a good conclusion, one that preserves jobs in Sweden and elsewhere. GM will continue to support Saab and Spyker on their way forward.”

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