Saab to restart production in August

Article by Christian Andrei, on July 7, 2011

The Swedish government has approved Swedish Automobile's request to sell part of Saab's property unit to a consortium of Swedish real estate investors, prompting the announcement that Saab is targeting an Aug. 9 date for production at its Trollhaetten plant to resume.

Last Tuesday, the European Investment Bank gave its approval to the property deal that aims to ease the cash crunch that Saab is experiencing.

Last week, Swedish Automobile (formerly known as Spyker Cars NV) inked a 28 million euro ($40 million) agreement to sell 50.1% of Saab's property unit, Saab Property AB, to a group of investors led by Hemfosa Fastigheter. With the closing of the deal, Saab will receive about 22.5 million euros.

Meanwhile, the remaining portion will be in the form of a bond. The consortium is permitted to increase its investment to 33 million euros within 30 days of the deal's closing. In the last few weeks, Saab and Swedish Automobile were able to raise about 61 million euros in "additional funding commitments."

Saab continues to be in talks with suppliers so that they could restart deliveries. Saab explained that Aug. 9 is the target date since its suppliers need a longer lead time to resume sufficient supplies and in consideration of the summer shutdowns at several component makers.

Topics: saab, production

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