European Commission Approves Saab Loan Guarantee

The European Commission finally approved the Swedish state loan guarantees for Saab, which basically means that Spyker, the new owner of the Swedish brand, can now continue work on the restructuring plan. According to just-auto.com, "the EC has ruled 82.8% of the Swedish guarantee to be in line with its state aid rules concerning access to finance in the current global economic uncertainty," while the remaining 17.2 percent will be offered depending on the economic environment.

"The state guarantee will contribute to the implementation of Saab's business plan without giving rise to any undue distortions of competition," said competition commissioner Neelie Kroes.

Out from a total investment of 1 billion Euros, Saab will use 400 million Euro to refresh its production line with fuel efficient models and new technology that would enhance the vehicles' safety.

"We now welcome the decision made by the European Commission," a Swedish ministry for enterprise spokeswoman told just-auto.

According to Spyker's product plans for Saab, the Swedish brand will continue to exist as a stand-alone brand with three to four models: 9-3 (sedan, hatchback, sports estate, X and convertible) and 9-5 (sedan, sports estate and X) and the 9-4X for both the US and European markets. Additionally, Spyker is also pondering the launch of the 9-1, a small model, but additional financing would be needed if we are to see the project alive.

Saab's Technical Development Center in Trollhättan will continue to be responsible for new products and will remain the main facility that will design and develop "complete" vehicles.