Saab clings on
Troubled car maker, Saab, continues to fight closure despite increasing losses.
The Scandinavian marque, now owned by Swedish Automobile (formerly Spyker), continues to fight for survival despite its parent company reporting Q2 losses of €152m, against €60m for the same time last year.
The company had run out of cash to pay staff and suppliers, with its production plant in Trollhattan, Sweden, remaining idle off and on since March this year and two local unions filing lawsuits for Saab to be made bankrupt in an effort to gain payment of wages for their members. Meanwhile the fate of Swedish Automobile (SA) also remains in doubt.
In essence, SA is waiting for approval on a number of purchase and takeover deals that would ensure the survival of its marques. It is hoping to sell its Spyker supercar line to UK-based CPP Global Holdings, while also sweating on Swedish and Chinese government approval for investment in Saab by China's Zhejiang Youngman and Pang Da Automobile.
Despite the lack of approval, Saab Automobile has been able to arrange a €70m bridging loan to keep the company afloat, based on a 'voluntary reorganisation' and guarantees from Youngman against the potential €245m lump sum that will be delivered by the two Chinese companies to SA if approval is given.
In the meantime, Saab GB sought to reassure its British dealerships and customers that it was business as usual for the independent company, wholly owned by SWAN, and was not involved in the reorganisation process.
