Zeewolde, The Netherlands – A new order by a Chinese company for 582 Saab vehicles will cover wages the automaker hasn’t been able to pay.
Swedish Automobile N.V., which owns Saab, said that the order has a total value of €13 million and full prepayment is expected to be received this week, providing Saab with short-term funding to pay wages to its employees and make partial payments to suppliers.
Swedish Automobile and Saab are continuing discussions with several parties to secure additional short-term funding to restart production. The companies warned that there is no assurance that the discussions will be successful, which include selling and leasing back Saab’s factory.
“I am pleased to announce this agreement, as it secures part of the necessary short-term funding for Saab Automobile and allow us to pay our employees’ wages before the end of this month,” said Victor Muller, CEO of Saab and Swedish Automobile. “The management of Saab Automobile is deeply committed to the company and its employees. I respect the decision of the union members to resign from the board of Saab Automobile. We very much regret the current cash shortage which is causing undeserved hardship to all and we are working relentlessly to resolve the current situation. We hope to secure additional short-term funding, necessary to reach agreement with all of our suppliers to restart production, soon.”