By Drew Johnson
Monday, Aug 15th, 2011 @ 10:14 am
 
Still striving to restart production at its idled Trollhattan facility by August 29, Saab will issue 4 million new shares in a deal with GEM Global Yield Fund Limited to raise $5.8 million.

Saab has struggled since April to fund its automotive operations, with the latest cash infusion viewed as little more than a temporary band aid. Saab says it is still in talks with other parties about further funding.

Saab halted production at its main Trollhattan plant in April due to a payment dispute with suppliers and has failed to pay its employees on two different occasions. The Swedish automaker is awaiting regulatory approval on deals with Chin's Zhejiang Youngman Lotus Automobile Co. and Pangda Automobile Trade Co.

Re-evaluating goals
Saab previously stated that it would sell 120,000 cars and turn a profit by 2012, but the automaker appears to be backing off of those goals in light of its declining financial state. Saab spokesman Eric Geers says the automaker will "re-evaluate" those targets once production resumes.

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