Saab Secures Some More Funding, Re-Evalutates Its Goals
Somehow, Saab is still alive, clinging to financial solvency with a tenacious refusal to go gentle into that good night. Some good news in its struggle has emerged, however: the troubled company has raised $5.8 million in a deal with GEM Global Yield Fund Limited, securing its funding for the time being.
Saab’s Trollhättan plant has been idle since April, while Saab raises money by selling Girl Scout cookies and mowing its neighbor’s lawn. This deal allows Saab to issue and sell 4 million new shares, but it still needs more money in the future: the company still needs to pay its suppliers as well as its employers in order to resume production by the end of August.
Saab is currently looking at deals with various Chinese automakers. But until those can come to fruition, it’s been forced to scale back some of its ambitious plans: it had previously stated that it would build 120,000 cars by 2012 and actually turn a profit by then. But now, it has scaled back its production target. And before that new target can be set, it actually has to, you know, go back into production.
[Source: Left Lane News]
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