Small Swedish automaker Saab, which is currently being courted by Koenigsegg, says that if it receives bridge loans from the European Investment Bank, it would look to increase production of its 9-3 and 9-5 models in response to demand. Saab has dramatically cut back production to conserve cash.
“We are discussing bridge loans,” Saab CEO Jan-Ake Jonsson said. “If we were to get that kind of financing that would mean we could increase production. We have the demand and we would of course have to rehire a number of individuals.”
Should Koenigsegg acquire Saab from GM, as is expected, the deal would depend on a $600 million loan from the European Investment bank. The automaker has said that it needs about $1 billion to restructure.
“We are in intensive discussions with the EIB about financing,” Jonsson said. “Depending on the time horizon, we will take initiatives to hold on to our money so that we manage until the financing becomes clear, so I feel pretty calm on this issue.”
06/30, 5:23 PM
posted by:
iluvamcars
In recent news, Saab’s dealers report massive back stock.
06/30, 5:24 PM
posted by:
iluvamcars
Demand for these models is not as high as LLN makes it seem.
06/30, 6:23 PM
posted by:
Mutant@DCX
I think if Saab sells 4 more vehicles this year, they will actually outsell Koenigsegg
06/30, 7:13 PM
posted by:
Borat
this is really stupid: shouldn’t demand drive production not loans? If there was a demand there would be no need for loans, just like Tesla: cars are pre-sold. Banks would love to give loans – they are guaranteed by customers deposits.
06/30, 10:12 PM
posted by:
johnnycanuck
I’m confused. Is this a threat or a promise?
07/01, 12:24 AM
posted by:
orangecones
Hahaha….good stuff. Can’t wait for the next few years to pass so that Saab stops dealing GM sourced stuff and starts introducing a little something on its own.
07/01, 11:06 AM
posted by:
shaver
I saw this coming, my local Saab dealer was down to 6 cars on stock from their usual 7.
07/01, 12:38 PM
posted by:
RaineMan
Demand??!!??
Why don’t they start by producing a car that someone actually wants… then worry about not having enough of them in stock.
07/02, 11:29 AM
posted by:
Bankruptcy2009
I am so happy that they are out of GM’s hands now.