Reported by: Eric CRWE Newswire Middle East correspondent

Spyker Car NV reported a net loss of Euro 139 million equivalent to US $176 million for the first half 2010 as compared to net loss of Euro 8.7 million for the same period last year. The reason for the larger loss is attributed to the acquisition of Saab by Spyker this year which was a much larger company than Spyker.

Spyker operating loss stood at 109 million Euros and its income statement reflects heavy transaction costs incurred by the consolidated financial statements of two auto manufacturers.

Spyker spokesperson stated, “Given the effective shut down in Saab’s operations during the first months of 2010, the first half year cannot be seen as representative in terms of volumes and operating results, but as a necessary episode from which Saab will build going forward.”

Saab car sales were 10,500 units in the first half of 2010 as compared to 24,300 for the same period last year. However Spyker’s chief executive officer Victor Muller forecasts 45,000 of Saab’s unit will be sold by the end of 2010 and expects to show a profit by the year 2012.

Spyker is a Dutch luxury car manufacturer which has seen losses the last 11 years, they acquired Saab which was the fully owned entity of GM at the time of acquisition and paid Euro 52 million or US $74 million to General Motors. Spyker obtained financing of Euro 400 million from European Investment Bank for is acquisition.

Spyker has utilized almost 134 million Euros out of the 400 million financing facility whereas its equity stands in a negative zone at 126 million Euros. However the company projects a much better balance sheet by the end of 2010.

Ake Jonsson chief executive officer of Saab commented, “In just a few months we have delivered several critical operational milestones ranging from restarting our manufacturing and product development to rebuilding our distribution network and undertaking the global launch of the all new Saab 9-5 model, which was extremely well received.”

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Tags: Ake Jonsson, Crown Equity Holdings Inc, CRWE.OB, Dutch Luxury car, General Motors, OTC: CRWE, SAAB, Spyker Car NV, Victor Muller

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