Tiny Dutch sports car maker Spyker has clinched a last-minute deal to buy Sweden's Saab, in an audacious attempt to turn around a money-losing brand that only days ago was headed for oblivion.
Saab owner General Motors announced the deal, without disclosing financial details, but reports said Spyker would buy Saab for $400m, $74m of which is in cash, with the rest in deferred shares.
The deal is subject to a Swedish government guarantee on a €400m loan from the European Investment Bank, which Sweden told GM it was reviewing.
The Swedish carmaker - which has an enthusiastic following among 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.
Spyker, which produces only 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.
While Spyker employs about 100 people, Saab has some 3,400. While Spyker made 43 luxury cars last year, Saab's annual sales exceed 90,000.
