Chinese order is lifeline for Saab

There is a glimmer of hope for Saab as a big new order will enable it to pay wages and suppliers and resume making cars.

Last week Saab said it did not have enough money to pay staff while production has been halted for two months since unpaid suppliers stopped delivering parts.

Saab’s parent company said an undisclosed Chinese firm had ordered 13 million euros worth of vehicles with full pre-payment expected this week.

Saab’s troubles intensified last week when Swedish trade unions threatened to force it into bankruptcy proceedings over unpaid wages, and as two union representatives resigned from the board.

Chief Executive Victor Muller said the company hopes to secure additional short-term funding to reach agreement with all its suppliers so it can restart production.

The firm said Russian businessman Vladimir Antonov was still interested in investing in it, but was awaiting a decision from the European Investment Bank on his clearance for an equity stake in Swedish Automobile, following the Swedish National Debt office’s recommendation to clear him two months ago.

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