Saab back to the drawing board after investment collapse
Sometimes life just goes from bad to worse. According to reports yesterday, Saab has slipped further into the financial mire following the collapse of a critical investment agreement.
The Swedish brand's Dutch owners, Spyker, were forced to terminate a €150m funding deal with Chinese manufacturer, Hawtai Motor Group, after it became clear that the firm could not gain the consent of all its shareholders to proceed.
In return for the cash, Saab were prepared to relinquish a 29.9 per cent stake in the business. The company desperately requires money if it is to complete work on the new Phoenix platform, which will underpin a range of future models.
Without Hawtai's funds, the manufacturer faces the same liquidity crisis which forced it to temporarily halt production at its Trolhattan facility.
Saab's plight has not been helped by sluggish sales and a reduction in its European Investment Bank loans. The brand is thought to be courting other Chinese investors in the hope of securing financial backing.