Spyker Likely to Go Bust Without New Investors
Left languishing in the wake of Saab’s failure, Swedish luxury supercar maker Spyker desperately needs investors to stay afloat but it may be too much to ask for the company to overcome its current catch-22.
Investors don’t often like putting money into a weak-looking company, but in Spyker’s case that money could very well be its last life raft. The company went by the name Swedish Automobile during the brief period when it owned Saab, but as since returned to its old moniker and monetary problems.
Spyker’s quest for investment isn’t new, but Saab’s failure prompted potential suitors like CPP Global Holdings and North Street Capital to put the brakes on, probably to be assured of Spyker’s buoyancy before forking over any cash.
In the first half of this year, Spyker posted a net profit of 126 million euros despite an operating loss of 1.4 million euros, according to De Telegraaf. The Swedish publication says that profit is largely from a financial restructuring and company recapitalization, which added 131 million euros to its bottom line.
If all goes as planned, that will help the company solve its struggle with getting parts from suppliers, allowing the company to build its exclusive Spyker C8 Aileron and hopefully woo investors.
Luke is an energetic automotive journalist who spends his time covering industry news and crawling the internet for the latest breaking story. When he isn't in the office, Luke can be found obsessively browsing used car listings, drinking scotch at his favorite bar and dreaming of what to drive next, though the list grows a lot faster than his bank account. He's always on <A title="@lukevandezande on Twitter" href="http://twitter.com/lukevandezande">Twitter</A> looking for a good car conversation. Find Luke on <A title="@lukevandezande on Twitter" href="http://twitter.com/lukevandezande">Twitter</A> and <A title="Luke on Google+" href="http://plus.google.com/112531385961538774338?rel=author">Google+</A>.
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Spyker is not Swedish, it hails from Holland. Do your research before posting.