Saab loses vital Chinese funding

Spyker bought Saab for $74m in January 2010

Saab-owner Spyker has announced that its funding deal with China’s Hawtai Motor Group has fallen through, throwing its plans to resume production at the Swedish carmaker into doubt.

Spyker said the agreement had been terminated because Hawtai had been unable to secure shareholder approval.

The deal had been unveiled on 3 May, with Hawtai pledging to invest 150m euros ($221m; £134m) into Spyker.

Spyker said it would continue work to secure short and medium-term funding.

It added in its statement that it would continue discussions with Hawtai, but would now talk to other potential Chinese partners as well.

No-one from Sypker or Saab has been available to comment regarding the implications on the planned restart of production.

In exchange for the 150m euros, Hawtai was to take a 30% stake in Spyker and it had also reached an agreement on sharing manufacturing and technology.

Netherlands-based Spyker bought Saab for $74m (£45m) in January 2010 from General Motors, but it has struggled to revive the Swedish company.

It stopped all production at Saab on 6 April, saying suppliers had halted deliveries after they had not been paid.

Spyker’s purchase of Saab was helped by a 400m euro ($570m; £350m) European Investment Bank (EIB) loan facility.

The company said it was now continuing talks with the EIB to access a further 29m euros from these funds.

Car industry analyst Tom Muller said Saab was in a tough position.

“It’s living by the day, it’s not just having money to pay its future obligations, it’s what it owes its suppliers already,” he said.

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