General Motors may have cleared the way for Russian businessman Vladimir Antonov to invest in Saab, but the Swedish automaker is right back on thin ice as parent company Spyker announced a $107 million first quarter loss on Friday.
Due to those widening losses, Spyker also announced that it is officially pursuing a Chinese partner for its ailing Saab brand. Spyker is currently shopping Saab to at least three Chinese automakers, although Spyker failed to name any specific companies.
“We have opened up alternative routes to fund the company mid and short term including, but not limited to, discussions with Chinese car manufacturers,” Spyker CEO Victor Muller said in a statement.
Although Muller didn’t announce any specific automakers, several news outlets have reported Spyker is in talks with Great Wall Motor Co., China Youngman Automobile Group Co. and Jiangsu Yueda Group Co. A Saab partnership with one of those companies could be formed within days.
It remains to be seen exactly how a partnership with a Chinese automaker would shake out, but it would likely involve a joint venture that would see at least some Saab production shifted to China. Saab vehicles could also be sold through its partner’s Chinese dealerships.
Sales target missed
Through the first three months of the year Spyker maintained that it would be able to sell 80,000 Saabs this year, but the Dutch automaker has officially abandoned those sales goals.
“It is unclear at this time what the consequences of the recent production stoppages and funding issues will be for our full year 2011 forecast but it is realistic to assume that realising our 80,000 cars sales forecast is no longer feasible,” Muller said. Saab’s Trollhattan plant has been closed for the last several weeks over a payment dispute with suppliers.
Muller didn’t announce a new sales target for the Swedish brand but Saab has only managed 9,674 sales worldwide through the first three months of the year. Given Saab’s recent production issues, that figure will undoubtedly fall during the second quarter and likely through the third. Still, Saab Q1 2011 bested 2010’s 3,630 unit performance.
Spyker says Saab’s breakeven point is 80,000-85,000 annual sales.
References
1.’Spyker can’t meet…’ view
