GM sells SAAB to Dutch carmaker Spyker

January 27th, 2010 - 11:32 pm ICT by Aishwarya Bhatt  

GM New York, Jan 27 (THAINDIAN NEWS) General Motors announced a ‘binding agreement’ to sell off its SAAB division to the Dutch luxury sports carmaker Spyker. The agreement between GM and Spyker says that, they will form a new company Saab Spyker Automobiles, which will carry the Saab nameplate forward.

GM officials said that in the agreement Spyker will make a payment of $US74 million ($82 million) in cash. Besides this, in the agreement will allow General Motors to keep the redeemable preferred shares worth an estimated $US326 million. This is quite a super-fast deal between the two companies and it is supposed to be legal by mid-February.

“Today’s announcement is great news for Saab employees, dealers and suppliers, great news for millions of Saab customers and fans worldwide and great news for GM. 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,” GM vice president for corporate planning and alliances John Smith said. Whereas Spyker chief executive Victor Muller said that they were very happy with the deal, and are looking forward to being the next milestone in Saab’s illustrious history.

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