Saab In Trouble As Rescue Falls Through

Saab's future has been thrown into doubt after a rescue deal with Chinese car maker Hawtai Motor Group fell through.


Saab's production in Trollhatten was halted most of last month


Spyker Cars, which bought Saab from General Motors in 2010, was in talks with Hawtai over a deal which would have seen it pump £130m into the the failing business.

But the deal foundered when the Chinese firm found itself unable to get approval from the relevant authorities.

Spyker is now having to chase new funding alternatives for Swedish Saab, which is veering towards collapse.

"Since it became clear that Hawtai was not able to obtain all the necessary consents, the parties were forced to terminate the agreement with Saab Automobile and Spyker with immediate effect," Spyker said in a statement.

As a result of Saab's failing finances, production in Trollhatten was halted for most of last month because several suppliers stopped delivering parts.

The chairman of Sweden's association of car industry suppliers Christer Palm said he was very concerned about the breaks in production.



Saab was hoping Hawtai would pump £130m in to its business


"Talks with suppliers haven't come very far and this is going to take time."

He added: "Saab needs to find a new shareholder, an approved financier and I hope Victor Muller has one last trick up his sleeve."

A Saab spokeswoman said that all of the employees at Trollhatten, including those who are not working due to the production shutdown, are being paid.

(from SKY)