As we reported before, it may seem like Spyker was one of the unlikely buyers of Saab but the thing for sure is that it is set to struggle with the real challenge which is to convert two loss-making companies into a profitable one.
Spyker Chief Executive Victor Muller also bought out his largest shareholder, Russian bank tycoon Victor Antonov, as part of the deal but the new Saab Spyker Automobiles NV faces huge challenges. The persistent losses, outdated designs, high labour costs, declining sales and, perhaps above all, little belief in the industry that it can pull off a turnaround.
“It seems like a gamble. They’ve got the new 9-5, the 9-4X coming out next and the new 9-3 should be coming out in 2012, which could be quite lucrative, but whether they can attract customers back to the brand and make it profitable again is the billion-dollar question,” IHS Global’s Ian Fletcher said.
Spyker, which only makes several dozen handmade supercars every year, is hoping to benefit from Saab’s technical resources and its distribution network, while CEO Muller has said he hopes the sports car maker will inject entrepreneurial spirit into the Saab brand. Saab, which has lost money over the past decade, was put up for sale more than a year ago. GM has suspended its plans to wind down Saab operations, pending a February closing.
At Spyker headquarters in the Dutch city of Zeewolde, there were high spirits at work on Wednesday. Hans van Rennes, Spyker’s vice president of marketing, said a Saab dealer sent the company a cake and one-time Saab suitor Koenigsegg called to offer its congratulations. Outside the offices, a Dutch television show organised a parade of old and new Saab cars.But happiness at Saab’s rescue aside, Spyker’s financing remains a question. As recently as July, the company did not have the money lined up for its 2010 production.
The new deal includes a 400 million euro loan to Saab from the European Investment Bank (EIB), with a Swedish government guarantee. European Union regulators said on Wednesday they would review the guarantee plans as early as possible.
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