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Saab Issues New Shares, Pulls Out Of Frankfurt Auto Show


2011 Saab 9-5 Aero

2011 Saab 9-5 Aero

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Swedish Automobile, Saab’s parent, is issuing another 4 million shares under an existing agreement with GEM Global Yield Fund Limited. Earlier this month, Swedish Automobile sold an estimated 5 million shares to GEM in order to raise funding to pay workers and suppliers.

The new deal is said to be worth another $5.8 million, but how far that will go to satisfy Saab’s existing debts is anyone’s guess. Production at Saab’s Trollhattan factory has been halted since April, and despite Saab’s insistence that production would resume in August, there is little indication of that happening.

On a related note, Saab has announced that they will not participate in this year’s Frankfurt Auto Show. Instead, Saab will focus their efforts on restarting production and returning to the business of building cars. While the Frankfurt show is significant, it’s followed in rapid succession by the Prague Auto Show, the Tokyo Motor Show, the European Motor Show in Brussels, and the North American International Auto Show in Detroit. In other words, Saab can easily make up any ground lost to competitors by not exhibiting their latest wares in Frankfurt.

Assuming, of course, they’re able to restart production in the near future as planned. We’ve got out fingers crossed for Saab, but their future still looks tenuous to us.

[Washington Post and Inside Saab]

 
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