EU to Review Saab Loan Guarantee ASAP

Now that General Motors finally agreed to sell Saab to Spyker, the Swedish authorities must decide on the amount of money to be used for backing the deal. Sources are claiming that Sweden wants to offer 400 million Euros but before providing the money, the European Union must review the proposal.

According to Reuters citing spokesman Jonathan Todd, 82.8 percent of the loan has to be scrutinized by the European Commission.

"The remaining 17.2 percent is considered to be remunerated at market terms and hence deemed as no aid," he said. "The Commission intends to complete rapidly its assessment of the case."

General Motors agreed earlier this week to sell Saab to Dutch carmaker Spyker after months of negotiations with several interested bidders. The deal is expected to get the final signature in mid-February and General Motors suspended the winding down activities immediately.

"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,” said John Smith, GM vice president for corporate planning and alliances. “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,” Smith said.

Still, the deal is seen as somehow risky by some people involved in the auto sector, including Sergio Marchionne, currently Fiat and Chrysler CEO. He believes that Spyker could have some problems in trying to revive the Swedish unit and turn it into a profitable entity during the current economic chaos.