After several false-starts General Motors today agreed to sell Saab to Spyker Cars, a Dutch firm that builds exotic cars costing upwards of $250,000. The deal, worth $950 million would create a new company, Saab Spyker Automobiles to carry the Saab name forward. And it would save the jobs of many of Saab's 3,400 employees. The deal, for $74 million in cash and $326 million in preferred stock, still requires approval of a $550 million from the European Investment Bank, backed by the Swedish government. It is expected to be finalized by mid-February.
Under the agreement, GM will immediately suspend its efforts to "wind down" or close Saab, and the redesigned Saab 9-5 sedan is expected to begin production in April. The company also produces the car-based 9-4X SUV for the European market. Both are expected to be imported to the United States.
While the Saab 9-3 and the outgoing 9-5 have performed well enough in our tests and our subscribers' reliability experiences that we recommend them, these cars are at the tail end of long model generations, and newer designs from other automakers perform better in our testing. Put simply, given the competitiveness of the upscale sedan and convertible marketplaces, there are better choices than a Saab.
Also read: "GM extends sale deadline, Saab production to resume."
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