Saab owner is in real and substantive talks with potential investors

Article by Christian Andrei, on August 10, 2011

Swedish Automobile, the owner of the automaker Saab, is currently in "real and substantive" discussions with possible investors, the company’s North American Tim Colbeck told Reuters. According to a Swedish business daily last week, a huge American investor intends to be a part-owner in the cash-strapped Saab.

The company refused to make a comment on the report. Worries about Saab’s survival, rescued from closure last year, have arisen as Swedish Automobile seeks financial sources.

Since late April, its production line has been shut. Saab was able to prevent a fresh bankruptcy threat last August 5 by obtaining the money it needs to pay its workers.

U.S.-based GEM Global Yield Fund Ltd agreed to purchase around 5 million new Swedish Automobile stake last week for slightly lower than 7 million euros.

Saab was among the victims of the post-2008 vehicle industry crisis that forced its then-parent General Motors Co. to close the business.

Swedish Automobile, previously known as Spyker Cars NV, rescued the automaker in early 2010 with help from European funding and guarantees from the Swedish government.

Colbeck declined to identify the investors with whom the company is in discussions. However, he revealed that Saab was prepared to take the challenge of relaunching the brand. He further disclosed that production at factories in Sweden is set to begin once more on August 29.

Topics: saab

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