Crisis hit Saab to start up lines again

Posted on 3 May 2011 by The Manufacturer

Swedish car maker Saab is set to resume its recently truncated production after securing around Eu60m in financing deals.

The company, brought from General Motors Europe last year by Dutch company Spyker cars, temporarily shut down production at its Trollhättan plant in Sweden a month ago after suppliers stopped delivering to the factory over fears of non-payment.

Now, the company has announced a short term Eu30m (£27m) loan from the Gemini Investment Fund, purportedly owned by a Lithuanian businessman and registered in the Bahamas. In addition, it will access Eu29.1m from the European Investment Bank.

The company says it will now be in a position to restore confidence among suppliers and hopes to recommence production within a week.

Reuters reports the company is expected imminently to announce a tie-in with a Chinese partner and is in negotiations for further funding from prominent Russian businessman Vladimir Antonov. However, the company has admitted it is unlikely to meet its production target of 80,000 vehicles this year.