Spyker sues General Motors over failed Saab take over
Spyker is claiming $3 billion in damages from General Motors. It all started way back in 2010 when Spyker Cars NV purchased Swedish car manufacturers Saab Cars from General Motors Co. for a price of $74 million. Since the very onset, this takeover was nothing but trouble as Saab continued on its downward spiral. Spyker alleges that General Motors deliberately blocked deals that would have seen the company prosper and thus save it from bankruptcy. Spyker also allege that General Motors deliberately took this step fearing competition from Saab in China.
Spyker worked to save the now defunct auto company while they blame GM for deliberately trying to destroy the company and drive it to bankruptcy. A case has been filed with the US District Court of Eastern District of Michigan, but this is not something that will be sorted out easily as the case may drag on for a long time without any guarantee for a fruitful decision being reached. However, Spyker feel that they need to address the issue so as to gain justice to stakeholders and themselves for losses suffered.
The lawsuit states that General Motors deliberately used their own technology licenses to prevent sale of Saab to a Chinese company due to ownership of chassis technology. However, Spyker also allege that this chassis was actually developed by Saab after it parted ways with General Motors.
Read the press release below for more information.
SPYKER FILES A THREE BILLION DOLLAR LAWSUIT AGAINST GENERAL MOTORS
Zeewolde, the Netherlands, 6 August 2012 — Spyker N.V. (“Spyker”) announced that it has filed a complaint against General Motors Company (“GM”) in the United States District Court of the Eastern District of Michigan today at 08.00 AM EST. Spyker filed the complaint in its own right and on behalf of its 100 percent subsidiary Saab Automobile A.B., which was declared bankrupt on December 19, 2011.
This lawsuit seeks redress for the unlawful actions GM took to avoid competition with Saab Automobile in the Chinese market. GM’s actions had the direct and intended objective of driving Saab Automobile into bankruptcy, a result of GM’s tortiously interfering with a transaction between Saab Automobile, Spyker and Chinese investor Youngman that would have permitted Saab Automobile to restructure and remain a solvent, going concern. The monetary value of the claim amounts to US$ 3 billion (three billion US dollars).
Since Saab Automobile is in receivership and hence incapable to contribute to the costs of litigation, Spyker and Saab Automobile have entered into an agreement pursuant to which Spyker will bear the costs of such litigation in exchange for a very substantial share of Saab Automobile’s award when the proceedings are successful. Spyker has secured the financial backing required to see the lawsuit through to the end from a third party investor.
Victor R. Muller, Spyker’s Chief Executive Officer said: “Ever since we were forced to file for Saab Automobile’s bankruptcy in December of last year, we have worked relentlessly on the preparation for this lawsuit which seeks to compensate Spyker and Saab for the massive damages we have incurred as a result of GM’s unlawful actions.
We owe it to our stakeholders and ourselves that justice is done and we will pursue this lawsuit with the same tenacity and perseverance that we had when we tirelessly worked to save Saab Automobile, until GM destroyed those efforts and deliberately drove Saab Automobile into bankruptcy.”
The Complaint, as filed this morning at 08.00 EST, is attached to this Press Release.