Saab Secures Short-Term Loan, Will Restart Production Next Week
Saab’s got a new short-term lease on life, as Automotive News Europe [sub] reports that the Swedish brand has secured a €30m, six-month convertible loan from Gemini Investment Fund. Saab is also requesting a €29.1 drawdown of its EIB loan, and when that is approved next week, Saab will reach the €59.1m in liquidity it needs to restart production. According to another piece by Automotive News [sub], Saab is still in talks with the Chinese automakers Great Wall Motor Co., China Youngman Automobile Group Co. and Jiangsu Yueda Group Co. in hopes of securing an additional investment in the struggling Swedish automaker, as well as a joint venture for Chinese production of the next-generation 9-3, and a possible Chinese market distribution deal.
Meanwhile, Saabsunited reports that several companies have been told to stop development on that next-gen 9-3 while the company gets back on its feet, meaning it could be delayed into the 2013 timeframe. And while Saab sacrifices long-term development for short-term survival, the recent production shutdown is taking its toll: Swedish sales of the 9-3 are up, but the new 9-5 is falling off (128 sold last month) as stocks dry up. The drama continues…
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Ed, just a minor correction. According to the press release, the new short-term loan was made through Gemini Investment Fund (not to be confused with Genii Group or GEM Global Yield Fund Limited). http://inside.saab.com/press-release-saab-automobile-secures-short-term-funding/
You know Joie Chitwood's thrill show used to do those same stunts with far greater precision and flare in such examples of automotive perfection as the Chevy Chevette and Malibu. Maybe Saab should have tried to pick up some chassis dynamics expertise during their time as a subsidiary of GM.
Well, as it seems, there is another chapter to the SAAB-story! Surprised, anyone? Quite obviously, these Swedish and Dutch doughboys can teach others some lessons in toughness!
It's being reported that Saab has struck some kind of deal with Hawtai Motor Group, but no one seems sure about the details. We'll have to wait and see until the press conference tomorrow.