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Saab-owner Spyker loses vital Chinese funding | Saab-owner Spyker loses vital Chinese funding |
(about 6 hours later) | |
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. | 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. | Spyker said the agreement had been terminated because Hawtai had been unable to secure shareholder approval. |
The deal was unveiled just last week, with Hawtai pledging to invest 150m euros ($221m; £134m) into Spyker. | |
Spyker said it would continue work to secure short and medium-term funding. | 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. | It added in its statement that it would continue discussions with Hawtai, but would now talk to other potential Chinese partners as well. |
All production stopped at Saab on 6 April, saying suppliers had halted deliveries after they had not been paid. | |
A Saab spokeswoman said talks were continuing with suppliers to get them to resume deliveries, but that the firm currently had no date by which it hoped to resume production. | |
Car industry analyst Tom Muller said Saab was now 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. | |
Loan talks | Loan talks |
With the deal with China's Hawtai collapsing, Saab is left in limbo. | With the deal with China's Hawtai collapsing, Saab is left in limbo. |
Until a solution to its cash crunch is found, it simply cannot go on making cars. | Until a solution to its cash crunch is found, it simply cannot go on making cars. |
The man in charge of it all, Dutchman Victor Muller, is now pinning his hopes on the European Investment Bank approving investment from Russian billionaire Vladimir Antonov. | The man in charge of it all, Dutchman Victor Muller, is now pinning his hopes on the European Investment Bank approving investment from Russian billionaire Vladimir Antonov. |
Mr Antonov stands ready to buy Saab's Trollhaettan factory and lease it back, and he wants to inject fresh cash into the firm. | Mr Antonov stands ready to buy Saab's Trollhaettan factory and lease it back, and he wants to inject fresh cash into the firm. |
Talks with other Chinese investors are also continuing. | Talks with other Chinese investors are also continuing. |
But it is far from clear that a solution will be found in time to prevent the loss of hundreds of jobs. | But it is far from clear that a solution will be found in time to prevent the loss of hundreds of jobs. |
Concerns are growing for the future of the staff who work at Saab's Trollhaettan factory. | |
But Swedish Prime Minister Fredrik Reinfeld said the government would not step in to rescue Saab. | |
"It is the owners and the management of Saab that must take this forward and find long-term financing," the AFP news agency quoted him as saying. | |
"We in the government have done all we could to facilitate the process," Mr Reinfeld said. | |
In exchange for its investment of 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. | Netherlands-based Spyker bought Saab for $74m (£45m) in January 2010 from General Motors, but it has struggled to revive the Swedish company. |
Spyker's purchase of Saab was helped by a 400m euro ($570m; £350m) European Investment Bank (EIB) loan facility. | 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. | The company said it was now continuing talks with the EIB to access a further 29m euros from these funds. |