Marchionne Doubtful That Saab-Spyker Would Work

General Motors yesterday announced its decision to sell Saab to Dutch carmaker Spyker and everyone was happy to finally find out that the Swedish brand will survive. However, some people involved in the automotive industry believe that a Saab - Spyker alliance might not work, mostly because becoming a profitable niche company could prove to be very difficult in the current economic conditions.

Sergio Marchionne, Fiat and Chrysler CEO, is one of the skeptical guys and thinks that the Dutch carmaker might encounter some difficulties when trying to revive Saab.

"Marginal players will continue to be marginalized. We cannot build on hopes and dreams," Marchionne was quoted as saying by Autonews during an industry event in Stockholm on Tuesday.

"It would be nice to see it survive, but it would be a first for a brand of Saab's size to go in the hands of a company that is not a major player," Nick Margetts, a Germany-based analyst at JATO Dynamics, told the aforementioned source. "Spyker knows about cars but they play in a different league," he said.

General Motors said in a statement that Saab's sale is projected to get the final signature in mid-February. Meanwhile, the US-based manufacturer suspended the winding down process.

“Throughout the negotiations, GM has always had the hope to find a solution for Saab that would avoid a wind down of the brand,” said Nick Reilly, president, GM Europe. “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.”