Spyker Might Look for Investors to Sustain Saab's Development

The Dutch, low-volume, bespoke car producer Spyker acquired Saab last month, saving the Swedish brand’s life but the buying process is only the beginning of Spyker’s efforts. The Dutch company will have to boost Saab’s production by at least 100%, develop new models and establish a dealer network, as Reuters reports.

The development will require an investment of hundreds of millions of dollars, forcing Spyker to tap investors for additional capital, as Tim Urquhart, an IHS Global Insight analyst, told Reuters.

According to Spyker, the financial resources ($1 billion) cover the needs to develop new models and enter the profit zone by 2012. Saab has a deposit of $200 million, a 400 million euro loan from the European Investment Bank and preference shares issued to GM. The latter carry serious dividend payments of 6 percent from 2012 and 12 percent from 2014. An additional 150 million euro credit is also available, should it be necessary.

However, according to the aforementioned source, Victor Muller, Spyker’s Chief Executive, recently told shareholders that he would seek to list Spyker shares in London and Stockholm and maybe delist from Amsterdam. Muller avoided to give exact explanations, only saying that the aim of the potential financial scheme would be "to be closer to investors."

"Competing in this sector requires significant investment at the best of times,"  Stuart Pearson, analyst at Credit Suisse told Reuters. "It will be very difficult for Saab to get back to previous production and sales levels."

However, Spyker has made similar moves in the past, avoiding financial collapse several times.