Saab Automobile could increase production to meet higher demand if it secured bridge financing from the government, the carmaker’s chief executive said today.
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Jan Ake Jonsson also told journalists on the sidelines of a conference Saab had enough liquidity to last it through the grace period under creditor protection granted it by a Swedish court, Reuters reported.
Niche sportscar maker Koenigsegg earlier this month agreed a preliminary deal to take over Saab, backed by Norwegian and US investors.
“We are discussing bridge loans,” Jonsson said. “If we were to get that kind of financing that would mean we could increase production. We have the demand and we would, of course, have to rehire a number of individuals.”
Financing for the Koenigsegg deal included an expected US$600m in loans from the European Investment Bank (EIB) guaranteed by the Swedish state, which so far has been reluctant to extend aid to the iconic Swedish brand.
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By GlobalData“We are in intensive discussions with the EIB about financing,” Jonsson told Reuters. “Depending on the time horizon, we will take initiatives to hold on to our money so that we manage until the financing becomes clear, so I feel pretty calm on this issue.”
Saab has said it needs $1bn to help restructure and launch new models. Jonsson said if negotiations with the EIB proved lengthy, the company would need to adjust its costs, Reuters added.
“It would mean for example that we can’t raise production,” he said.
Swedish industry minister Maud Olofsson said in a Reuters interview last week that the government remained in the dark on how much Koenigsegg and its financial backers would invest in Saab, and that state guarantees might not be needed.
The Swedish government said in May Saab might also qualify for a bridging loan from the state if that proved necessary to smooth the transition to a new owner, the report added.
