27 May 2011

Saab to restart production today

Saab planned to restart its production line in Sweden today after six weeks of being idle due to cash flow problems.

Plans are to start off slowly, rolling out 100 cars on Friday instead of its usual 230 to 240 per day production.

Saab owner Spyker has been struggling to turn the Swedish carmaker around and ran out of cash to pay its suppliers, halting production and pushing it to the brink of collapse.

Meanwhile, Chinese car distributor Pangda is waiting for regulatory approval at home for its rescue of Saab in a deal worth up to €110 million.

Spyker recived an advance payment of €30 million from Pangda last week and had hoped to restart production by the end of this week.