Spyker Cars NV is selling its loss-making F1 team to a consortium led by Indian businessman Vijay Mallya for 88m euros, the Dutch car manufacturer has announced

A statement issued by the company read:

"With the sale of the Formula One Team now agreed in principle ... Spyker Cars N.V. will return to the task of finalizing the internal strategic review and associated refinancing which has been ongoing since May

We obviously regret having to sell the Spyker F1 Team, especially after the progress we showed in Spa and the promise of the revised B-Spec car. However, it has become increasingly clear that we could not continue to operate in both the world of Formula One as well as maintain the investments needed to grow and develop the road car division. Our first responsibility must always be to our investors, employees, dealers, suppliers and customers and it is therefore time for us to return to our core activity.

We will now complete our search for a permanent CEO and CFO to implement our new strategy and build upon the global brand awareness that we have achieved until today."

Earlier this month, Michiel Mol, said he had teamed up with Mallya to make an 80m euro bid for the team, the offer being made by Strongwind - the investment division of the Mol family - Watson Limited, a company owned by Mallya.

It's understood that shareholders in Spyker Cars N.V. next Saturday (September 29)

Spyker Cars N.V., which is already forecasting a loss this year, bought the former Midland (nee Jordan) team $106m in 2006.