Following its agreement to acquire Saab Automobile from General Motors, Spyker Cars has revealed its strategic plans for the brand.
Saab is expected to stand alone as a niche manufacturer with three to four model lines: the 9-3 (saloon, hatchback, sports estate, X and convertible), 9-5 (saloon, sports estate and X) and the 9-4X for both the European and US markets.
According to the plans, Saab will investigate the potential of adding a fourth smaller car line under the 9-1 name depending on how the smaller car segment continues to develop. However, as the model is not currently envisaged in the business plan, additional financing may be required. It is expected that Saab’s product portfolio will be renewed completely beginning with the launch of the 9-5 over the summer.
Production and sales volumes are expected to be rebuilt to pre-crisis levels of about 100,000-125,000 vehicles produced at Trollhaten and the 9-4X which is built in Mexico. The dealer network is expected to be re-energised with a new sales and distribution approach.
The plan requires around $1billion in peak funding in advance of the return to profitability, which is expected to occur in 2012. The funding will be provided in part by GM and through other contributions – $326million in redeemable preference shares will be issued by Saab to GM; a $556million European Investment Bank loan must be secured as a condition of the sale; and $200million will come from estimated cash at bank at the time of closing.
The purchase of Saab amounts to $74million with the first instalment of $50million to be paid on closing.
