Saab receives order for 582 cars, pay wages image

Saab on Monday morning announced that a Chinese company placed an order to purchase 582 Saab vehicles with a total value of EUR 13 million. This will help the automaker to pay the wages to its employees and make partial supplier payments.

However, this will not help the automaker for a very long time.

Bill Visnic, senior analyst at Edmunds.com, said the brand has had too many obstacles to overcome in the past two years for it realistically to survive — without a deep-pocketed equity suitor.

“It really appears increasingly desperate as each new piece filters out about this,” Visnic said.

However, there is another deal on the table.
Swedish real estate firm Hemfosa is ready to buy and lease back Saab’s factory, throwing the crisis-hit carmaker a lifeline, but Saab’s complex financial situation makes a deal difficult, Hemfosa’s chief executive told.

Victor Muller, CEO of Saab Automobile and Swedish Automobile, said: “I am pleased to announce this agreement, as it secures part of the necessary short-term funding for Saab Automobile and allows us to pay our employees’ wages before the end of this month. The management of Saab Automobile is deeply committed to the company and its employees. I respect the decision of the union members to resign from the board of Saab Automobile. We very much regret the current cash shortage which is causing undeserved hardship to all and we are working relentlessly to resolve the current situation. We hope to secure additional short-term funding, necessary to reach agreement with all of our suppliers to restart production, soon.

Production at the Saab factory in Trollhattan, Sweden, has been suspended for most of the time since early April because of a shortage of cash. The company, repeating a statement of two weeks ago, said it was continuing to negotiate with parts suppliers who have refused to extend I.O.U.’s.