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Saab has been surrounded by general corporate uncertainty and financial trouble over the last few weeks. The failed deal with China’s Hawtai Motor and Saab’s $100 million payment mishap with its parts suppliers have taken a toll on the Swedish automaker however the company may have a second chance.
Saab announced on Thursday that it has made progress with its 800 suppliers and is confident it will resume production by next week. “What we are aiming at, what is an internal goal here now, is (for production) to be up and running at the end of next week,” Saab production director and purchasing manager Gunnar Brunius said.
Saab has struck a deal with China’s Pang Da, which has agreed to pay the automaker $30 million up front, to get the company moving again. Furthermore, Pang Da will invest another $84 million, if approved by the Chinese government, giving the Chinese distribution firm a 24 percent stake in Saab. However, if the deal fails, Saab will have to repay Pang Da’s initial $30 million investment, which could cripple Saab financially.
[Source: Left Lane News]