Bankruptcy

Saab Lives On

By mcbride

?Spyker [the tiny exotic automaker who has long been negotiating for Saab ownership] has agreed to pay $74 million in cash and $326 million in preferred stock in a new Saab that will emerge from this deal. The Swedish government has agreed to guarantee a $563 million (400 million Euro) European Investment Bank loan for Saab?.Saab had been on the verge of launching two new models, a redesigned 9-5 mid-size car and the new 9-4X crossover SUV. Those launches will now continue, Smith said, with GM providing parts and support.  The 9-5 is already being produced Sweden, Spyker said. GM is producing the 9-4X, which is closely related to the new Cadillac SRX, in its Mexican factory.  Saab Spyker is expected to take over relationships with Saab’s U.S. dealer network, Smith said. Warranty support will continue without interruption, he said.  ?A bright spot for Saab, and potentially why Spyker worked so hard to acquire it, is some of the solid new product in its GM-based pipeline,? said James Bell, an analyst with the Kelley Blue Book’s KBB.com.?  Here is a link: http://money.cnn.com/2010/01/26/autos/saab_spyker_deal/

Michael

Full post as published by Texas Lawyer Blog on January 27, 2010 (boomark / email).