General Motors says it has agreed to sell Saab to Dutch carmaker Spyker

General Motors says it has agreed to sell its Saab division to Dutch carmaker Spyker.

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AMSTERDAM, Netherlands — General Motors Co. said Tuesday it has reached an agreement to sell its struggling Saab Automobile arm to the small Dutch luxury carmaker Spyker Cars NV.

GM has not specified terms of the deal, but a Wall Street Journal report citing anonymous sources says the sale price is roughly $74 million, and GM will retain preferred shares in Saab worth $326 million.

As part of the deal, the Swedish government will guarantee a euro400 million (US$566 million) loan from the European Investment Bank to Spyker, the Journal reported.

The deal would be a coup for Spyker and a lifeline for Saab, which has around 3,500 employees in Sweden.

The sale of Saab is “great news for Saab employees, dealers and suppliers, great news for millions of Saab customers and fans worldwide, and great news for GM,” said John Smith, a vice-president at the company.

The sale of Saab is part of the Detroit-based automaker’s restructuring plan as it tries to recover from last year’s short stay under U.S. bankruptcy protection.

GM wants to focus on four core brands: Buick, Chevrolet, GMC and Cadillac.