Spyker Sues GM Over Failed Saab Takeover

By: Associated Press
By: Associated Press

AMSTERDAM (AP) -- Spyker Cars is the tiny Dutch company that bought Swedish carmaker Saab from General Motors for $74 million in 2010. Now, it says it is suing GM for $3 billion in damages.

Spyker, along with its now-bankrupt Saab subsidiary, alleges that GM unfairly blocked deals that would have seen a Chinese manufacturer take over Saab production and save it from bankruptcy. It says GM feared competing with Saab in China.

Saab continued a downward spiral under Spyker's ownership as consumers worried about buying cars from a maker that appeared likely to be out of business soon. The Swedish company eventually went bankrupt in late 2011. It is now being bought out of bankruptcy by National Electric Vehicle Sweden.

As part of the deal selling Saab, GM retained say over GM technology used by Saab -- including the chassis of most of its models. It also kept $327 million in preferred shares in Saab, with payments due to start several years after the sale, if Saab turns profitable.

Spyker has never turned a profit, and Saab never turned a profit under its oversight.

(Copyright 2012 by The Associated Press. All Rights Reserved.)

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