Saab Sales in Works in Russia by Former Spyker Head

Just the Facts:

• Vladimir Antonov is working to establish production of Saab models in Russia.
• Antonov is a former co-owner of Spyker.
• Saab production could be launched in the Kaliningrad region.

MOSCOW — Vladimir Antonov, a Russian tycoon and former co-owner of Spyker, plans to establish the production of Saab models in Russia. It is expected that the amount of investment at the initial stage of the project will reach $100 million, which might be partly provided by some Russian state-owned banks and unnamed corporations.

In addition to Saab, Antonov does not exclude the possibility of starting assembly of another Saab-based budget model priced at $12,000.

Antonov said that despite his recent departure from Spyker — which was one of the conditions of the GM-Spyker deal — there is a possibility of establishing a joint venture between Saab and Converse Group, which he owns. He also added that there was no ban from GM on further development of Saab business in Russia.

Saab production could be launched in the Kaliningrad region, which has good links with Sweden.

Estimated capacity of the plant is 50,000-70,000 cars per year. The production will be gradually localized, with the possibility of establishing the production of components and engineering in the region.

Currently Antonov still works as an adviser to the Spyker and Saab brands. Several weeks ago, he had to sell his stake in Spyker. Although Antonov has repeatedly denied all speculation, the split was reportedly due to GM's concern about his reputation.

Russian analysts believe that choosing Kaliningrad as a place for future Saab production can be explained by its status as a special economic zone with significant customs and tax benefits. Currently Kaliningrad is a home to Avtotor, a well-known Russian carmaker, which assembles vehicles from a range of automakers including BMW, Cadillac, Chevrolet, Hummer and Kia.

Inside Line says: Complex business story has a logical ending, that of Saab production coming across from Sweden into Russia. — Evgeniy Vorotnikov, Correspondent