Spyker needs more cash for Saab

Written by buzz. Posted in Cars

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If Spyker wants to make Saab a profitable enterprise, they’re going to have raise more cash and do it soon.  Analysts say that in order to put the Swedish auto company into the black they will have to sell upwards of 75,000 vehicles per year.  This number is a far cry from the 39,903 they sold last year, and light years away from the 300 or so cars Spyker has sold in its entire decade of being in business.  In order to meet this goal, which is 250,000-500,000 cars short of projected goals, Spyker will have to invest hundreds of millions of dollars – dollars that will have to come from new investments.  The company asserts that it has enough capital for financing, but CEO Victor Muller recently told shareholders that he wants to list Spyker in the London and Stockholm stock exchanges in order to have closer proximity to investors.

Besides new capital investments and increased production, Saab will also have to sell, service, distribute, and offer parts and warranties to its customers, two-fifths of whom are in the in the United States.  Trying to rebuild strong distribution and service networks to meet all these tasks in this turbulent auto climate will be an uphill battle for Spyker and could delay or stifle their ambitious plans.  On the other hand, Saab sales have dropped so low in the past few years that even moderate improvement could be seen as success.

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