General Motors Co. has narrowed its options for the Saab unit in Sweden to no more than three bidders, according to two people familiar with the matter.
GM is reviewing proposals by Spyker Cars NV and Renco Group Inc., with Renco less likely to gain consideration, said the people, who asked not to be identified because the discussions are private. Merbanco Inc., a Wyoming-based investor group, is out of the race, they said.
GM is still weighing a sale of certain Saab assets to Beijing Automotive Industry Holding Co. and unwinding the rest of the company, said the people. The Detroit automaker is trying to shed the unit after Koenigsegg Group AB backed out of a purchase agreement last week. The disposal of Saab as well as the Saturn, Hummer and Pontiac brands was part of GM's plan to return to profit after a $50 billion U.S.-backed bankruptcy from which it emerged July 10.
"It's heartbreaking to see a company like Saab going down -- Saab is a beautiful brand," Spyker Chief Executive Officer Victor Muller said in a telephone interview today from Los Angeles, where he is attending the auto show. The Dutch maker of $235,000 sports cars is bidding for Saab in a partnership with RMC Convers Group Holding Ltd, its biggest owner, he said.
GM said yesterday it will review bids for Saab and decide by the end of December whether to sell or shut the Swedish unit.
Spyker Spikes
Spyker climbed 45.5 cents, or 29 percent, to 2.04 euros, the steepest increase since Oct. 14, 2008.
The company divested its unprofitable Formula One racing team in 2007 and sold 12 vehicles in the third quarter. Its C8 Aileron, which accelerates to 60 miles per hour in 4.5 seconds, retails for at least $235,000 excluding taxes in the U.S., the company's main market.
Beijing Auto, which was part of Koenigsegg's bid, plans to "move fast" on Saab as the Chinese carmaker seeks to improve its technology, President Wang Dazong said Nov. 30. GM spurned an offer from Beijing Auto for its Germany-based Opel division earlier this year and closed the Saturn brand when Penske Automotive Group Inc. withdrew a bid in September.
The Chinese carmaker, which has partnerships in its home market with Seoul-based Hyundai and Stuttgart, Germany-based Daimler AG, sold 1.02 million vehicles in the first 10 months of 2009, 51.6 percent more than last year. This is the first year its sales surpassed 1 million, the carmaker said.
John Dillard, a spokesman for Renco, owned by billionaire Ira Rennert, didn't return a phone call. Neither did Merbanco President Chris Johnston. Zheng Gang, a spokesman for Beijing Auto, declined to comment earlier.
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