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Losses continue for Saab owner Spyker

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Losses continue for Saab owner Spyker
14:56 CEST+02:00
Saab Automobile owner Spyker Cars reported a net loss of €76.3 million ($113 million) for the first quarter, but sales of the iconic Swedish brand shows signs of upward swing.

Overall sales income rose to €257 million, up from €44 million for the same quarter last year, while a total of 9,674 cars were sold in the first three months of 2011.

According to Spyker's quarterly report, March was the best sales months for Saab since the Swedish automaker became independent from its previous owner, US auto giant General Motors (GM).

"It's in line with our forecast," Saab spokesperson Eric Geers told the TT news agency.

"In March we had the best sales month since Saab started as an independent company."

In addition, a total of 10,088 cars were produced during the quarter.

The stoppage which has idled Saab production for the last three weeks due to liquidity problems means the company's goal of selling 80,000 cars in 2011 "is no longer feasible", Spyker CEO Victor Muller admitted.

Even if the company's management attempts to paint a rosy picture for the remainder of the year when a new model is expected to come out on the market, Spyker is expected to continue posting losses throughout 2011.

"A lot of things have happened recently and that's going to have an t. But we have a lot going on right now and hope that we'll come out of this situation as soon as possible so we can get going again with production and sales," said Geers.

In the hunt for long-term financing solutions, leaders from Saab Automobile have been in discussions with potential strategic investors in China and elsewhere, Spyker writes in its report.

Ahead of its May 19th general meeting, Spyker Cars has proposed changing its name to Swedish Automobile.

Spyker shares fell by 5 percent in initial trading in Amsterdam on Friday, but recovered quickly, trading down 1 percent five minutes after the market opened.

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