Saab posts third-quarter net loss of €142.7 million image

Swedish Automobile, the Dutch owner of Sweden-based automaker Saab Automobile AB, announced a third-quarter net loss of €142.7 million and said it expects a „substantial net loss” for the full year.

The grim outlook is caused by production stoppages and a tight liquidity situation during the third quarter of 2011. “Since Saab Automobile’s production facility in Trollhattan was basically not in operation throughout the whole reporting period, we have been unable to provide dealers and customers with the cars they have ordered and stock levels around the globe continued to fall,” said Victor Muller, Saab Automobile CEO in a statement.

Only 130 cars were produced this year between July 1 and September 30 and 1,235 cars were sold, a steep decline of 86 percent compared with the same period last year. Third-quarter sales totaled €75.8 million, compared with €274.7 million a year earlier. Subsequently, Swedish Automobile posted an operating loss of €87.5 million, compared with a loss of €56.3 million in the same period of 2010.

Saab Automobile has been operating under creditor protection since September 2011 while trying to restructure its operations. Negotiations with Chinese companies Zhejiang Youngman Lotus Automobile and Pang Da Automobile Trade Company to sell Saab Automobile still continue, even if GM, a key technology supplier of Saab, vetoed the sale. If the sale is not completed it will likely result in a Saab Automobile bankruptcy.