General Motors has agreed to sell its Saab brand to the Dutch luxury car maker Spyker Cars NV.
According to reports in the Associated Press and other media, GM will recieve US$74-million in cash , including US$326-million in preferred shares in Saab. GM will also get “other considerations. GM did not go into details as to what those other considerations might be.
Not everyone is singing the praises of this deal. Spyker Cars has posted losses of US$12.25 million and has yet to record a profit since 2000.
Sergio Marchionne, CEO of Fiat S.p.A voiced his doubts about the deal a few hours before the GM-Spyker announcement: “Marginal players will continue to be marginalized. We cannot build on hopes and dreams.”
Last year, Fiat saw an opportunity for Saab and its Lancia line of vehicles, and included Saab as part of Fiat’s offer for Opel last May. Fiat withdrew when GM asked Fiat for cash.