It was only a week ago that things looked much brighter for Scandinavian auto maker Saab. Despite production being stopped in early April it appeared that the company would be getting a much needed cash infusion of over $200 million from Chinese automaker Hawtai Motor Group. The funds would allow Saab to resume production, and possibly breathe new life into the company which is owned by Spyker.
Early this week the Hawtai deal fell through as it did not gain approval by investors in the Chinese company as well as the Chinese government. Spyker is now seeking new financing, including the European Investment Bank that loaned $565-million to Saab’s for restructuring and the development of new models. The company announced that as soon as the EIB drawdown other necessary funding is confirmed they aim to resume production.
Spyker and Saab are quickly running out of options now will need to turn quickly to those options, and the possibility of new ownership at some point may not be out of the question.