Chinese Investment Saves Saab, For Now –

2012 Saab 9-3 Griffin

Saab’s problems with cash flow have been solved, at least for a couple of months, courtesy of a significant Chinese investment that will allow the Swedish automaker to resume production at its factory in Trolhattan. Spyker, the owner of Saab, has announced this week that they’ve signed up a deal with Hawtai, a Chinese car manufacturer, which will invest 150 million Euros, taking 29.9% stake. They will also give Spyker another 30 million Euros as a convertible loan.

This deal will clear the path for Saab’s entry to the very competitive Chinese market, which is very important for the company’s attempt to boost up sales to a profitable level. Hawtai decided to make this move because of Saab’s potential for technology sharing as well as the company’s European sales network.

The Trolhattan factory has been closed for more than a month due to unpaid bills, the suppliers refusing to send the necessary components. Production should restart next week and everything should be back on track.

Yesterday, Spyker grabbed another 60 million Euros of funding from a Lithuanian-owned investment fund and Vladimir Antonov, a very wealthy Russian businessman.

Source: Saab via Autocar

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