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Saab saved... for now

 Saab saved... for now
Saab resumes production, first Saab 9-5 saloon down line, Trollhättan, Sweden, 22.03.2010

How quickly will the automaker spend $36 million?

Saab has received yet another lifeline to keep operations up and running in the short term, this time thanks to a bridge loan from Gemini Investment Fund Ltd. The investment group issued a €25 million ($36.2 million) bridge loan to the belabored automaker, according to the Associated Press.

The move comes days after an announcement of a large Saab vehicle order by an undisclosed Chinese firm that added €13 million ($18.4 million) to company coffers, allowing the automaker to meet immediate payroll demands.

"I am relieved to report that we made the June salary payments this afternoon from the proceeds of the sale of cars we announced last Monday," said the chief of Saab parent Victor Muller. "We have clearly gone through a very rough patch in the past few weeks and hopefully we can now reach agreement with our suppliers so as to ensure a resumption of our production in a controlled way."

An AP report says the loan matures in six months, with a 10% interest rate, and no pre-payment penalty. Saab's parent company, the Dutch firm Swedish Automobile NV, would likely pay the money back if approval for an investment by two Chinese companies is granted.

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Comments (4)

 JoshBenz JoshBenz
Does any body buy these cars? I never see them. Besides what is there market demographic? I mean I don't like them. But there not the worst looking car. Besides who's there compettion?
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July 1, 2011 12:44 pm
 PAA PAA
About 30 years ago I remember a Japanese auto executive saying that all small manufacturers will either join the umbrella of a large group or they won't survive. Who was that prophet? I doubt Saab can survive on its own. Its been 20 years that Saab is a money loosing company. I ll be sad if they go cause I was eyeing both the 95 and the 92 in my future purchases.
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July 1, 2011 12:36 am
 rupash88 rupash88
As long as they can find people to give CPR to a dying elephant, she'll be alright...
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June 30, 2011 6:22 pm
 Microice Microice
This is my new soap opera. Hope they get out of this mess. They definately need to be part of a large automotive group in the longterm.
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June 30, 2011 10:56 am