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Saab confirms 'extended' production stoppage

TT/AFP/The Local · 12 Apr 2011, 10:53

Published: 12 Apr 2011 10:53 GMT+02:00

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"Spyker and Saab Automobile are currently in discussion with several parties to secure additional short and medium-term funding for Saab Automobile," the company said in a statement on Tuesday.

The firm confirmed that production will take around a week to resume even if the Swedish National Debt Office (Riksgälden) approves a plan to bolster cashflow by selling off Saab real estate.

The Local reported on Monday that Spyker had confirmed that it was in talks to sell off Saab properties in a bid to address cashflow problems which have left production at the firm's Trollhättan factory at a standstill.

The firm announced that it intended to lease the properties back.

Amid speculation that Saab is on the verge of collapse, the firm sought to play down fears in its statement on Tuesday, describing the situation as a "short-term liquidity crunch".

Spyker Cars stated that it expected to be able to give more detail of ongoing negotiations with the National Debt Office and other connect parties at the latest on Thursday.

Sweden's National Debt Office has a say in Spyker's business because it guaranteed a European Investment Bank (EIB) loan to Saab.

The announcement sent Spyker shares tumbling 4 percent on the Amsterdam stock exchange in early trading on Tuesday. The firm's stock has thus now fallen more than 30 percent since mid-February.

Story continues below…

Production had been halted three times in the previous week, but last week's halt was the first time since Spyker bought Saab from US GM in January 2010 that the carmaker was forced to halt production without a set date for starting it up again.

Before being rescued at the last minute by Spyker, iconic Swedish carmaker Saab spent 20 years under US auto giant General Motors, during which time it did not turn a profit.

TT/AFP/The Local (news@thelocal.se)

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Your comments about this article

11:45 April 12, 2011 by Arcticeric
... it takes time to rob a bank ... but soon the safe will be empty and the cash safely tucked away ... then bye-bye birdie ... going to miss the brand ... but Saab crashing will open up jobs for auditors as the Swedish government to try to find out where the money went... like the payments to the Germans "employed" by Vattenfall, none in the government will have a clue how it all happened ... same ole story, new day ...
12:36 April 12, 2011 by Nemesis
The government needs to seize SAAB now.

Otherwise everything will be lost, assumign it has not already been.
13:12 April 12, 2011 by Irishmanabroad
I had a chat with a reasonably senior member at SAAB yesterday and they are very downhearted about how this is being played out in the media. All the money provided to them has already been assigned to future engineering programmes which are important for the longterm survival of the company, but they have an immediate need for cash to pay for the cars they are currently building.

There hasn't been a single mention of this in the British press, so why the need here in Sweden. Doesn't the Swedish media realise just how many peoples jobs rely on how they portray this, just so they can shift a few papers. Give them a bloody chance and stop invoking Jante's law!
14:17 April 12, 2011 by glamshek
DO you think British press is the most reliable one ? British press is famous for telling half truth which s leathal. As an example see how it hides reporting the Bahrain's political issue
19:16 April 12, 2011 by jack sprat
Spyker supposedly jumped in to rescue Saab,despite the fact that they never had a viable business themselves and were in even more desperate need of being rescued than Saab.

Once they have stripped the assets and mugged the Swedes, they'll both go down the Swanee together or maybe up the Volga.
20:47 April 12, 2011 by spy

Actually, internationally, the British press is held in far higher regard than the Swedish equivalent... Swedish media are renowned for running stories that have not been doubled sourced and often they take opposing slants in the same media within only a few days which only highlights woefully inaccurate information. For an investor or someone who actually wants to learn the truth this is useless. The British FT is a model that all media aspire to and none in Sweden get anywhere close...
20:51 April 12, 2011 by GlobalDispute

Is that why several of the contract companies with resources working in-house at SAAB on new development projects have not been paid either? I think Jan-Åke knew the truth and he left before the ship sank.
23:54 April 12, 2011 by Jasper2
Ok, now the big question: is Victor getting paid.

Yes? Why?

No. OK
07:56 April 13, 2011 by Arcticeric
he is getting paid directly and indirectly ... paid as chairman, yes, AND millions in interest have been paid to a company he controls which has loaned Saab funds. I think I read at 10% interest and to the tune of 60 MSEK so far. He has done very well so far and surely will find other ways to clean the bank before fading into the sunset...
12:42 April 13, 2011 by Twiceshy
Looks like Saab went downhill even faster than I expected, despite all the protestations from Saab/Spyker apologists previously seen even here at thelocal.se.
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