Early this morning, Saab-parent Swedish Automobile agreed to sell its Spyker sports car business to a private equity firm based in Greenwich, Connecticut. The deal, worth 33 million euros ($45 million at today’s exchange rates) will be done entirely in cash. But what motivated a group of American investors with no history owning or managing an automaker to buy Spyker, which made just 37 cars in 2009? We spoke with Alex Mascioli, the managing partner of North Street Capital, for some answers.
C/D: Why buy Spyker?
AM: Even though we don’t have experience with this type of holding, we look at it as a really exciting opportunity. The cars’ interiors are bar none some of the most beautiful pieces of art on four wheels. This is a company that has actually placed very well in racing, like the Le Mans series. Until now, it’s been a little bit overshadowed as a car company that plays with the big boys—but does so on a shoestring budget. Overall, the Spyker products have a beautiful foundation for an independent exotic car.
C/D: The company built only 37 cars in 2009, and rumors say none were built in 2010. Can it become profitable?
AM: So far, Spyker hasn’t had much long-term foresight, whether it be liquidity or other factors. But it’s really at its leanest point right now. This is a great starting point to turn it into a profitable car, especially with proper brand placement. I’m a firm believer that Spyker can be a race on Sunday, sell on Monday brand.
C/D: So what are the next steps?
AM: We like the C8 as it is, and we’re really happy with the Audi powerplant. In terms of the vehicle, it will sort of be business as usual, but we are going to give it more visibility as a brand by taking it to the track and building—relatively speaking—on the dealer network. We’re also going to give them some marketing money, in addition to the racing.
C/D: How many cars per year can Spyker sell? It epitomizes the phrase “boutique carmaker.”
AM: We’re looking for realistic growth. It would be great over the next couple of years to see 20-percent year-on-year growth—so moving to about 50 cars a year would be the goal for now. We just want to see consistent growth, even if it’s small in absolute numbers.
C/D: Who is going to run the company?
AM: Victor Muller will stay on as the CEO. We’re confident in him; this was his baby from the very beginning, and he knows what works and what doesn’t. Our role is just to provide the liquidity and the resources and be the number-one cheerleader.
C/D: What’s in your own garage?
AM: Just a few Saabs [noticeable pause] and a Lamborghini Gallardo.
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