General Motors is on the verge of disposing its Saab unit to Spyker Cars NV of Dutch to thwart the decay in the damage to the Swedish car maker. The deal will involve $74 million in cash and $326 million as shares, subject to the guarantee of 400 million euro European Investment Bank Loan(on expiry in February). The move resulted with the bankruptcy of GM which is noted for its brands- Pontiac, Saturn and Hummer- being branded as extinct giving way for Chevrolet, Buick, GMC and Cadillac.
The deal would make 3500 jobs survive at the production unit Trollhaettan. Saab got the bidding from Genii Capital(a tie-up of Formula One tycoon Bernie Ecclestone); another one from the group led by the former Swedish PM Jan Nygren and one more group of Merbanco Inc. the earlier bid was from Swedish Koenigsegg Group AB with the back up of Beijing Automotive Industry Holding Co but it shelled out $200 million for purchase of technology from Saab.
The company was having its historical trace in 1937 with the aircraft concern Svenska Aeroplan AB. In 1947 the first car was rolled down till GM secured 50% of Saab in 1990 and the subsequent complete take up in 2000.