Some Saab suppliers agree to restart deliveries

ERJ staff report (AN)

Stockholm (Reuters) -- Saab said that some suppliers had agreed to restart deliveries and it was holding talks with others in order to get production restarted after a month's break due to unpaid bills.

Saab, rescued from closure by Dutch company Spyker Cars NV a year ago, got another last-minute reprieve on Monday when it inked a preliminary funding deal with Chinese group Pangda Automobile Trade Co.

Production director and purchasing manager, Gunnar Brunius, said Saab had begun talks with its roughly 800 suppliers on Wednesday and had already reached agreement with some, including plastic component supplier Plastal.

"What we are aiming at, what is an internal goal here now, is (for production) to be up and running at the end of next week," he told Reuters.

Under the Pangda deal, Saab gets an instant 30 million euros ($43 million) for vehicles destined for sale in China.

Pangda, which raised nearly $1 billion in an initial public offering last month, will pay 65 million euros for a 24 percent equity stake in Spyker at 4.19 euros per share.

The latter step will require approval from Chinese authorities, something that may not be easy to get.

Also on Thursday, Pangda said it aimed to set up a manufacturing venture with Spyker and a local partner this year and start making cars in two years.

Should this part of the deal fall through, Saab will have to repay the initial 30 million euros.

Russian businessman Vladimir Antonov has also been waiting in the wings to take a stake in Saab, a move that requires approval from the European Investment Bank, which has extended a loan to Saab and former Saab owner General Motors Co.

From Automotive News (A Crain publication)