Spyker Looking for Alternative Funding: Chinese rescue deal collapsed image

Saab’s rescue deal that included Hawtai Motor Group of China has collapsed, leaving the owner Spyker Cars to hunt for new funding alternatives since it was attempting to resume its production at the Swedish carmaker.

Spyker said that things were clear that Hawtai was unable to get all the required consents and so it has been forced to end this agreement which worth €150 million to the company. Adding further, Spyker said that talks over possible co-operation will continue with Hawtai, but on a non-exclusive basis.

Dutch-listed Spyker along with Hawtai was agreed on a deal to put 150 million euros that is $216 million into the brand which is running at a loss and will manufacture a new model in China.  However, this plan dropped following a breakdown to receive necessary approvals. According to a source, Spyker has said that a Chinese company which is into sports utility vehicle making named Great Wall Motor had talks to this Dutch company about possible tie-up. Besides, a spokesman for the Russian businessman and former Spyker shareholder has said that other possible investors are still interested to handle this troubled brand including Vladimir Antonov.

Due to such a huge loss, Saab has left with no money to pay its bills and so some of the suppliers have even stopped delivering parts to the company, putting halt to the production at Trollhatten plant of Saab. The Spyker Chief Executive, Victor Miller is not ready to comment, but concluded saying that “I am always optimistic”, and this is no exception.

Well, while the production will remain suspended, Spyker on the other hand is still negotiating for more than €29.1 million loan from the European Investment Bank.

Written by Sunita Mandal