Saab is aiming to restart production next week if it can secure agreement with its suppliers following the banking of EUR30m (US$43m) from Chinese vehicle distributor Pang Da.
“We hope we can start next week, but it depends on negotiations with suppliers,” a Saab spokesman in Sweden told just-auto. “The EUR30m came into our bank account yesterday (18 May) from Pang Da.”
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News of the cash boost will allow Saab to continue to fund its 3,800 staff and comes on top of the EUR30m financed by investment group Gemini. Saab is also continuing to talk to the European Investment Bank (EIB) to draw EUR29.1m.
Sceptics have wondered about the speed of the deal, coming so soon after the collapse of last week’s Hawtai agreement, but Saab insisted its latest Chinese tie-up, brokered by CEO Victor Muller, was the right one.
“Victor Muller is an extremely skilled person, but he also has a good case,” said the spokesman. “Pang Da is the biggest car dealer in China and perhaps the world. Even Pang Da stock rose 4%.
“This one [agreement] is a better deal than the Hawtai deal. Of this EUR30m…it is an advance payment for 1,300 cars that we build for China specifically.”
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By GlobalDataPang Da is looking to have EUR65m as equity with Saab, but this has to be approved by the EIB, the Swedish government and the Swedish National Debt Office. “That is not a major issue,” said the Saab spokesman.
Supplier bodies both in Scandinavia and across Europe, who are owed money, have previously expressed the need for Saab to settle accounts.
The Pang Da financing follows the MOU inked by Saab and the Chinese distributor on Monday (16 May), covering a 50:50 joint venture and a manufacturing JV (MJV) for Saab brand vehicles, as well as a so-called MJV-owned so-called ‘child-brand.’
Muller is currently on his way to Holland to attend the annual Saab parent Spyker shareholders meeting.
