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Factory sale may hold key to Saab's future

TT/The Local/gm · 25 Jun 2011, 10:52

Published: 25 Jun 2011 10:52 GMT+02:00

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Saab representatives hope that the sale of the factory premises will bring in a vital cash injection which would allow them to get production running again and pay staff salaries.

Should a sale go through, it could raise up to 300 million kronor ($46.1 million) and provide a vital lifeline for the company. Staff were told the day before Midsummer that they would not receive their monthly salary on Monday.

“I cannot say anything more than that we're working on it,” said Saab spokesperson Gunilla Gustavs.

It had been hoped that the sale would be concluded before the salary run, but it soon became evident that it wouldn’t be the case as the negotiations dragged on. Hemfosa leads a consortium, including insurance giant Folksam and The Fourth Swedish National Pension Fund (Fjärde AP-fonden).

Jens Engvall, president of Hemfosa, told Dagens Industri, “It is a difficult matter and we need to get an idea of ​​how credible it is that Saab will survive in a reasonable way. We also need to understand how the agreement with Pang Da and Youngman looks and how the EIB system works. This has meant that it took a little longer than a normal real estate business".

Meanwhile, on a more positive note, a representative of Da Pang said in an interview with Bloomberg News that the company is still willing to go ahead with the deal with Saab.

Story continues below…

“Our previous plans will not change. Saab has temporary financial difficulties but the problems are not fundamental,” said Wang Yin, secretary of the board of Pang Da.

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

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Your comments about this article

11:27 June 25, 2011 by byke
So if they sell the factory off, firstly who's gonna buy it?

Be serious, even Volvo moved out to China .... which means it looks like Saab will also.

Which begs the question, why the government will allow such a sale since they have guaranteed such large amounts of cash in a business to help save swedish jobs.

If they move out of the country the governments left with more unemployed people and a company that has no value to sweden and is left holding a guarantee for payments with no assets.
13:38 June 25, 2011 by JoeR
Even USA Goverment lent money to GM to keep them going. Australian Goverment gave money to Holden to develop a local car instead of Korea, the Cruse.

What are you waiting for?
16:31 June 25, 2011 by old git
whatever happens i bet our Dutch friend will not be out of pocket...
16:52 June 25, 2011 by jostein
But seriously, its been totally obvious to the casual newsreader for three yeras at the very least that SAAB has no future? For the economical analyst it should have been obvious for 20 years.
17:18 June 25, 2011 by Mb 65
If the Chinese buy into SAAB they will move it out of Sweden. With the high wages,tax, parental leave, and long holidays here in Sweden it's common sense to move it out. Since GM owned it the car is not the same anymore.
18:00 June 25, 2011 by RobinHood
It is not the sale of its factory that "may hold the key to Saab's future".

It is Saab's inability to build and/or sell cars that will define its future. The headline shows how far people have drifted from reality over this issue.
14:48 June 26, 2011 by Luke35711

I suspect that place drifted so far from reality that it became little Knutby..
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