Saab’s hopes of re-starting production next week appear to be coming up against the bureaucratic wall of the European Investment Bank (EIB).
The Swedish manufacturer is waiting for the Luxembourg-based bank to signal its approval of planned investment by Russian businessman Vladimir Antonov as well as a EUR150m (US$222m) cash injection from Chinese manufacturer Hawtai.
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However, a seemingly opaque statement put out today (5 May) by the EIB does not appear to advance Saab’s stated ambition of starting production again at its idle Trollhattan plant that has been shuttered for nearly a month.
“When Saab presented its package of liquidity measures, in order to solve the liquidity squeeze due to low sales of cars, the EIB actively engaged with the other three parties involved – Saab, the Swedish National Debt Office and General Motors – to try to resolve the situation,” noted the EIB statement.
“The EIB is ready to do its part to facilitate a solution regarding the financing of Saab in line with its role as provider of financing of the R&D programme, while adhering to its established banking principles. In the medium term, Saab may need a more flexible credit structure overall, as the company is undergoing major changes.”
Calls by just-auto to Luxembourg to ask the EIB to shed some light on what “a more flexible credit structure” might entail were met however, with an ultra-cautious response.
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By GlobalData“This has to be finely balanced, statements like this are always finely balanced, I can’t really expand on that,” an EIB spokesman said.
“What I can point out is we are communicating, we are ready to do what we have stated we are ready to do.”
Where that leaves Saab is as yet unclear. A complex combination of the SNDO, EIB, Swedish government and former parent General Motors, has to come together in order for the automaker to see its production lines roll again.
Why the EIB has not delivered its verdict on Antonov’s suitability also remains vague. The Russian’s application to own up to 30% of Saab by underwriting EUR30m was vindicated by the SNDO last week, but the EIB has not mentioned him by name.
Dogged by controversy and rumour, Antonov was the subject of intense scrutiny by the SNDO, which hired private investigators and legal teams to reassure itself of the Russian’s credentials.
The Swedish government however, is also waiting on the EIB. “We will wait for the EIB and GM to give their opinion on Antonov as a possible owner,” a Swedish Enterprise Ministry spokeswoman in Stockholm told just-auto.
“As soon as we get a decision from those two partners, we are prepared to take action. We have already shown we work quite efficiently. We are aware Saab is keen to get the decision as soon as possible.”
The EIB also reiterated it was “not a liquidity provider” and liquidity financing must come from the company’s cash flow commercial banks or other sources.
Saab was not immediately available for comment.
