GM sells Saab to Spyker Cars

Detroit-based General Motors and Spyker Cars have reached a binding agreement wherein the latter has

As per the agreement, Spyker intends to form a new company, Saab Spyker Automobiles.

John Smith, vice president of corporate planning and alliances at GM, said: "Today's announcement is great news for Saab employees, dealers and suppliers, great news for millions of Saab customers and fans worldwide, and great news for GM. General Motors, Spyker Cars, and the Swedish government worked very hard and creatively for a deal that would secure a sustainable future for this unique and iconic brand, and we're all happy for the positive outcome."

According to GM, the Swedish government is at present reviewing the transaction and related request for guarantees of a Saab Automobile loan, which has been requested from European Investment Bank. Assuming quick action, the transaction is expected to close in mid-February. Previously unveiled wind down activities at Saab will be immediately suspended, pending the close of transaction.

Nick Reilly, president of GM Europe, said: "Throughout the negotiations, GM has always had the hope to find a solution for Saab that would avoid a wind down of the brand. We've worked with many parties over the past year, including governments and investors, and I'm very pleased that we could come to such a good conclusion, one that preserves jobs in Sweden and elsewhere. GM will continue to support Saab and Spyker on their way forward."

The sale will be subject to customary closing conditions, including receipt of applicable regulatory, governmental and court approvals. Other terms and conditions specific to the sale is expected to be disclosed in due time.