Saab Spyker Product Plans, Deal Terms Revealed
First of all, Spyker assures us that Saab 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.
The new 9-5 will be officially launched this summer, followed by the new 9-4X in early 2011 and the new 9-3 in 2012.
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.
The Swedish production facility will keep its doors open, with Spyker to attempt to bring production at the same levels as before the crisis. The 9-4X will continue to be built in Mexico.
Obviously, Spyker and Saab will cooperate in certain areas, including distribution and engineering. For example, the two will both use Saab's network dealership of 1,000 stores and will share activities in marketing and sales, such as merchandising, promotion and sponsorship activities.
According to first figures, this business plans needs around $1 billion to work. GM will help with $326 million Redeemable Preference Shares (“RPSs”), and in part through other contributions, as Spyker explained in the statement. A 400 million Euros loan is expected to come from the European Investment Bank, as the Swedish government has already granted a guarantee on January 26, 2010.
Spyker confirmed that buying Saab costs $74 million, with the first installment of $50 million to be paid on closing to be divided as follows: "USD 25 million is borrowed from Tenaci at the same interest rate as the other funding extended by Tenaci, without the right to convert into shares. This amount is currently already in escrow with General Motors."