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NINETY EIGHT REGENCY

Saab to resume output after bid deadline dropped

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Saab to resume output after bid deadline dropped

December 30, 2009 - 5:53 am ET

AMSTERDAM (Reuters) – General Motors Co. has extended a Dec. 31 deadline for bids for Saab, which will restart some production lines in January after a holiday shutdown, Saab said today.

GM had given itself to the end of this month to consider bids for money-losing Saab while continuing a process to wind down the company, which has drawn interest from Dutch luxury carmaker Spyker Cars and others.

Spyker CEO Victor Muller said in a text message that GM had extended the deadline for a final offer from Spyker until Jan. 7, in an extension of GM's original Dec. 31 deadline for a deal. Muller added he believed there are multiple bidders for Saab.

9-5 production to restart

In the meantime, Saab will restart some production lines again in January for its new 9-5 model and cabrio, Saab spokesman Eric Geers said.

"We have the orders and we have to deliver them as usual. We also have the orders for the 9-3 and others. The factory has to continue again," Geers said.

"We are preparing the wind-down process. At the same time we are open to options, to bids that come in. Therefore the deadline has also been dropped," Geers said.

GM was still in talks with potential bidders for its Swedish unit but Geers only named Spyker and declined to talk about other parties.

Merbanco Inc., a Wyoming-based group, has been named in the media as another Saab bidder.

Spyker wants Saab dealers

Loss-making Spyker has been keen to buy Saab to benefit from its technical resources and its distribution network.

Spyker, backed by Russian and Arabic investors, lodged a renewed fast-track offer to buy Saab on Dec. 20.

The surprise new offer from Spyker -- which made 43 luxury cars last year against Saab's sales of 93,295 -- came just two days after talks with GM over a rescue of the loss-making Swedish manufacturer collapsed.

Spyker's Muller has said if a deal is achieved, Saab and Spyker Cars would operate as sister companies where Spyker could benefit from Saab's technical resources and its distribution network, while Spyker would bring entrepreneurial skills to Saab.

The Swedish government has said it would allot 542 million Swedish crowns ($75 million) to measures, mainly for education and job schemes, to help deal with the thousands of jobs set to disappear if Saab shuts down.

Abandoning the 60-year-old Swedish auto brand would eliminate 3,400 jobs in Sweden and hit 1,100 Saab dealers worldwide.

China's Beijing Automotive Industry Holding Corp bought a number of car designs from Saab earlier this month.

Read more: http://www.autonews.com/apps/pbcs.dll/article?AID=/20091230/COPY01/312309995/1265#ixzz0bDFD93DK

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Spyker's Muller has said if a deal is achieved, Saab and Spyker Cars would operate as sister companies where Spyker could benefit from Saab's technical resources and its distribution network, while Spyker would bring entrepreneurial skills to Saab.

Yeah Right.

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Yeah Right.

My reaction exactly!

What entrepeneurial skills? The ones that resulting in Spyker being rescued by Abu Dhabi oil money? :lol:

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My reaction exactly!

What entrepeneurial skills? The ones that resulting in Spyker being rescued by Abu Dhabi oil money? :lol:

Sometime people just say too much. Just submit the offer to buy and shut the blump up. Do not justify something which you do not possess.

I personally still do not want SAAB to go to these geniuses.

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