Spyker Cars reported a first-quarter net loss of 72 million euros

Article by Christian Andrei, on April 28, 2011

Spyker Cars recorded a net loss of 72 million euros on Friday for the first quarter of 2011. The company, which bought Sweden-based Saab last year from General Motors Co., has also revealed that meeting its production target for this year will probably not be achieved. The company has been struggling to bring Saab back to profitability.

During the past weeks, the company has been looking for ways to obtain the funds it needs to resolve unpaid bills to Saab’s suppliers, which halted deliveries of auto components. Fortunately this week, General Motors and Sweden’s Debt Office have approved Spyker’s agreement that will allow Vladimir Antonov, a Russian businessman, to obtain 29.9 percent of Spyker for 30 million euros.

However, the company stated that its cash position is still tight. According to Spyker Chief Executive Officer Muller, the company has been searching for alternative ways to obtain the funds they need for short-term and mid-term liquidity.

Included in its actions are the company’s discussions with various parties including car manufacturers in China, and current shareholders. The company remains hopeful that the talks will be productive to bring back its operations to full swing as soon as possible.

As late as last March, Spyker was firm when it said that it will hit its production target this year for Saab, being able to sell 80,000 units compared to the approximately 30,000 last year.

However, Spyker stated on Friday that the target is no longer realistic. Production at Saab’s factory has been adversely disrupted during the greater parts of April.

The factory used to produce at least 200 vehicles every day. As of the moment, the effects to the company’s 2011 results due to the latest production stoppages as well as the funding issues are still unclear, Muller said in a statement.

Topics: spyker

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