Saab just can’t seem to catch a break. After moving from the General’s formerly overcrowded pocket into the hands of Spyker, the once-quirky brand is now doing all it can to bring production back online after failing to pay suppliers.
The gist is this: Saab received 400 million Euros (~$580 million) from the European Investment Bank so it could keep on ticking. Sweden guaranteed the loan, meaning whatever Spyker’s resolution calls for must get the go-ahead from the Man.
Saab hopes Sweden will release some collateral, but in order for that to happen its loans must be reduced. According to Reuters, the first hit would be cutting money from IEB loans intended for green tech.
Bo Lundgren, Sweden’s Debt Office Chief, says, “We can to some extent consider reducing the collateral which in turn would leave them able to use the collateral to obtain financing…But that is on condition that they scale back the amounts being guaranteed and reduce the volume of loans and that we on the margin improve our safety margin.”
Saab has a few other cards up its sleeve, however. For one, the brand may sell off real estate and then lease it back. Another potential solution comes in the form of Spyker Cars owner Vladimir Antonov. He’s the Russian investor who was run out of Spyker by General Motors for alleged shady business dealings, and he’s got funds.
Regardless of how Saab fares, higher-ups in Sweden’s government want people to know that they will not simply assume responsibility for organizing the company. Anders Borg, Sweden’s Finance Minister, says, “It is very much up to those who are responsible for Saab to sort the problem out…It is not going to be solved by the taxpayers lowering their demands for clarity and good governance.”
Keep checking back as the Saab survival story continues.
By Phil Alex
