Saab Saved, Purchased by Dutch Automaker

Saab, the Swedish auto brand owned by General Motors, has escaped from the recession with a new owner. General Motors sold Saab to Spyker, a Netherlands-based exotic-car manufacturer.

The deal, priced at a reported $74 million cash, saved Saab from an economy-caused deletion from the auto world. General Motors opted not to save the brand in favor of its more profitable brands like Chevrolet and Cadillac.

Details of the deal include the $74 million cash payment plus $326 million in quote "preferred stock" in the new-format Saab brand. In addition, the Swedish government stepped in and guaranteed $663 million in a European Investment Bank loan.

The buyer, Spyker, is a relatively new company. Established in 2000, Spyker makes ultra high-end sports cars that have a starting price exceeding $200,000. The brand is so niche, it's estimated that Spyker has sold only 250 of its vehicles. But the brand must be catching on: According to published reports, Spyker says it should sell 100 of its vehicles this year. While the company is based in the Netherlands, Spyker moved production of its cars to Great Britain in late 2009.

The deal, expected to be finalized in mid-February, will change the Saab brand name to Saab Spyker Cars. During the transition, including releases of expected new vehicles such as a crossover SUV, GM will continue to provide support and auto parts. Spyker is said to be establishing relationships with existing U.S. Saab dealerships, so in theory consumers won't notice a change in ownership and management. Existing warranties will not change, and existing Saab owners should not notice a disruption in service or support.

Saab is one of many General Motors-owned brands set to be either closed or sold as GM works to get out of bankruptcy and survive the economic downturn. Four brands, Saab, Hummer, Saturn and Pontiac, were targeted for closing or sale. Saturn was scheduled to be sold to the Penske Automotive Group, but the deal fell through. Hummer is said to be sold to Sichuan Tengzhong Heavy Industrial Machinery Co., a Chinese-based manufacturer. But that deal needs approval from the Chinese government first. GM never tried to sell Pontiac, and there were no buyers for it.

General Motors has placed an increased emphasis on its other, more successful lines such as Chevrolet and Cadillac. The Cadillac CTS remains one of the best-reviewed sports sedans on the market, and Chevy is preparing for the debut of its revolutionary Volt in the coming year.