Saab Gets Green Light For Property Sale, Sets Production Start Date

July 7, 2011

Things are looking better and better for Saab these days. After months of the Swedish automaker teetering on the brink of bankruptcy, this week has them announcing three new models and getting the green light on a previously announced sale of real estate holdings. Swedish Automobile NV has received approval from both the European Investment Bank and the Swedish government to proceed with the sale of real estate holdings to a group of Swedish investors.

The sale includes 50.1 percent of Saab Property AB’s holdings (including the Trollhattan factory) and will raise approximately $32.25 million for Swedish Automobile at closing. The remainder of the money involved, roughly $7.9 million, will go into a bond, and the investment group has the ability to up their holdings by another $7.2 million within 30 days.

That’s enough for Saab to enter into serious dialogue with suppliers, and the automaker has set a target date of August 9 to resume production. The date is over 30 days away because many suppliers have long lead times or are closed for vacation during certain weeks in the summer. Swedish Automobile also claims to have raised some $87.5 million in “additional funding commitments” over the past few weeks, which undoubtedly includes the order for 582 cars from a mystery buyer.

We're not ready to say that the worst is over for Saab, but we'll admit that a future for the automaker is looking more likely than it has for quite some time.

[Automotive News]

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