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GM to sell Saab to Dutch carmaker Spyker

Tue Jan 26, 2010 1:19 PM EST
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Toby Sterling, Associated Press
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<p>FILE - In this Jan. 12, 2009 file picture, a Saab sign is shown at the North American International Auto Show in Detroit. A General Motors Co. spokesman said Jan. 25, 2010, the automaker does not have a deal to sell its Swedish Saab brand, but it is still in talks with Dutch luxury car maker Spyker Cars NV over a possible sale. (AP Photo/Paul Sancya, file)</p>

FILE - In this Jan. 12, 2009 file picture, a Saab sign is shown at the North American International Auto Show in Detroit. A General Motors Co. spokesman said Jan. 25, 2010, the automaker does not have a deal to sell its Swedish Saab brand, but it is still in talks with Dutch luxury car maker Spyker Cars NV over a possible sale. (AP Photo/Paul Sancya, file)

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AMSTERDAM — General Motors Co. said Tuesday it has reached an agreement to sell its struggling Saab Automobile arm to the small Dutch luxury carmaker Spyker Cars NV.

GM has not specified terms of the deal, but a Wall Street Journal report citing anonymous sources says the sale price is roughly $74 million, and GM will retain preferred shares in Saab worth $326 million.

As part of the deal, the Swedish government will guarantee a euro400 million ($566 million) loan from the European Investment Bank to Spyker, the Journal reported.

The deal would be a coup for Spyker and a lifeline for Saab, which has around 3,500 employees in Sweden.

The sale of Saab 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, a vice president at the company.

© 2010 The Associated Press. All rights reserved. This material may not be published, broadcast, rewritten or redistributed.
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Tony in Arizona

I've always like Saab though I never owned one. I am glad to hear the make will survive.

    Reply#1 - Tue Jan 26, 2010 1:42 PM EST
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