Spyker in Financial Diffculties – Again

By Brendan Moore

03.30.2008

The news out of Amsterdam a few days ago was not good for Spyker Cars. After a bad 2006 in which the Dutch automaker Spyker lost 1.34 million euros, the final numbers are finally in for 2007 calendar year, and it isn’t pretty. The tiny exotic car manufacturer lost a stunning 72 million euros in 2007.

It seems almost impossible that a company the size of Spyker could lose that much in a year, but this is what happened in 2007 – The company sold the Formula One team it had just purchased in 2006 for a loss, its CEO resigned, potential investors appeared and disappeared, their flagship supercar, the C12 Zagato was canceled, and their suppliers and vendors stopping shipping to them. Spyker points to heavy losses in their Formula One business, GT racing and retail activity as the primary reasons for the awful financial performance of 2007.

But, Spyker now states that production and sales are up sharply in the first quarter of 2008, and orders in hand make the second quarter look very strong as well. The company said they have made 12 new cars and sold 18 new cars in 2008 so far.

In a statement reported by Thomsen Financial, CEO Victor Muller said, “2007 was a dramatic year, the likes of which the company had never seen before and which we would like to leave behind us as soon as possible.”

He added that now that Spyker Cars has been recapitalized, through loans and a capital contribution from Snoras Bank in Lithuania, the company has seen a remarkable turnaround in just three months.

“The Company is better positioned than ever before and ready for its next phase: controlled growth leading to profitability,” Muller said.

Spyker’s cars start at around $367,500 and go up from there. Their cars are noted for their stunning performance, power and unusual styling.

The original Spyker was started over 100 years ago by the Spyker brothers and made luxury sedans that competed with Rolls Royce. In 1914 Spyker merged with the Dutch Aircraft Factory N.V. From that moment on the Spyker logo consisted of an aircraft propeller and a wire wheel. The axiom “Nulla tenaci invia est via” – for the tenacious no road is impassable – was used by Spyker after that time. That firm went bankrupt in 1926 and the name was revived for the current Spyker in 2000, which still uses the same axiom in their corporate marketing.

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Author: Brendan Moore

Brendan Moore is a Principal Consultant with Cedar Point Consulting , a management consulting practice based in the Washington, DC area. He also manages Autosavant Consulting, a separate practice within Cedar Point Consulting. where he advises businesses connected to the auto industry. Cedar Point Consulting can be found at http://www.cedarpointconsulting.com.

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1 Comment

  1. What is it with these super-car companies? They go from one near-death experience to another until they finally go under. Is the type of personality that starts these kinds of companies just not suited to running an actual business?

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