Saab fate could rest on GM talks with Dutch sports car maker

MICHIGAN - General Motors has adjusted its plan for Saab to focus on selling the entire unit, with Spyker Cars emerging as a frontrunner, according to people familiar with the situation.

Spyker, the Dutch maker of US$235,000 ($326,000) sports cars, was negotiating details of an agreement with GM over the weekend in Zurich, said two people, who asked not to be identified because the talks are confidential. GM has separately reached a preliminary deal to sell some technologies for Saab's 9-3 and 9-5 models to Beijing Automotive Industry Holding, with an agreement likely to be announced soon, a person said.

The Detroit car maker is trying to sell or wind down the Swedish unit after Koenigsegg Group backed out of a purchase agreement last month. A sale of Saab will also depend on Sweden's guarantee and European Union approval for a €400 million ($810 million) loan from the European Investment Bank, the people said.

A sale to Spyker "would be a step in the right direction", Mike Tyndall, an automotive analyst at Nomura Securities in London, said in a telephone interview. "I'm not sure if it will be viable in the long term given Saab's small scale and weakened brand image."

Saab was among four brands GM planned to unload as part of its restructuring to focus on Chevrolet, GM said it would review bids for Saab and decide by the end of this month whether to sell or shut the unit.

Gunilla Gustavs, a spokeswoman for Saab, and Mike Stainton, a spokesman for Spyker Cars, declined to comment. GM Europe's Frank Klaas couldn't be reached for comment.

Beijing Auto plans to announce "new progress" on Saab "as soon as possible", Zheng Gang, a company spokesman, said by telephone.

The Chinese car maker, which was rebuffed by GM in July when it bid for Ruesselsheim, Germany-based Opel, has blamed the failed bid on disagreement over intellectual property rights to car designs and technology.

Spyker is bidding for Saab in a partnership with chairman Vladimir Antonov's RMC Convers Group.

- BLOOMBERG