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Saab-Spyker has yet to receive approval for the $547 million in aid it is requesting from the European Investment Bank, but the automaker has moved one step closer to securing that line of credit.
<p class=”MsoNormal” style=”margin: 0.1pt 0in;” target=”_blank”>Automotive News reports that the European Union has approved Sweden’s offer to back the EIB loan. The EU considers roughly eighty percent ($437 million) of the loan to be state aid, and was subject to regulatory review.
Securing the loan from the EIB is crucial to Spyker’s purchase of Saab. Although it will give General Motors roughly $326 million in preferred stock and use $74 million of its cash reserves, the loan — sought to help the brand develop upcoming models and technologies — is key to Spyker closing the transaction.
Some suggest the Swedish loan backing is contingent on Saab developing smaller, more fuel-efficient vehicles in the future. Spyker CEO Victor Muller had stated development on the 9-1 small car — perhaps an offering that fits this contingency — could resume, but only if the company is profitable after launching the new 9-5 and 9-4x this year and an all-new 9-3 in 2012.
<p class=”MsoNormal” style=”margin: 0.1pt 0in;” target=”_blank”>Source: Automotive News
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