Firm has secured an order from a Chinese firm to secure the short-term funds to pay its staff

Saab is now able to pay its staff following an order for more than 500 cars from an unnamed Chinese company.

The troubled Swedish car maker has now received a 13 million euro (£11.5m) advance payment for 582 vehicles. The money will allow parent firm Swedish Automobile to pay Saab’s employees and make partial payments to employers, yet the money is not enough for production to be restarted.

The deal works out at an average cost of 22,337 euro (£19,846) per vehicle. The lowest price Saab currently on sale in the UK is the £21,505 Saab 9-3 SE 2.0t saloon.

'Too late' to save Saab

Swedish Automobile said that it was also in talks with other parties as its attempts to secure further short-term funding, although it could give “no assurance that these discussions will be successful or that additional short-term funding will be obtained”.

Discussions between Swedish Automobile and real estate firms over the sale and lease back of its Trollhattan production plant and its other properties were ongoing, said the firm.

“The management of Saab Automobile is deeply committed to the company and its employees,” said Saab and Swedish Automobile chief Victor Muller. “I respect the decision of the union members to resign from the board of Saab Automobile. We very much regret the current cash shortage which is causing undeserved hardship to all and we are working relentlessly to resolve the current situation.

“We hope to secure additional short-term funding, necessary to reach agreement with all of our suppliers to restart production, soon.”

Muller also said Vladimir Antonov’s attempts to invest funds into Saab were ongoing and he could “provide much needed financing and/or capital to Swedish Automobile/Saab Automobile at this critical time”.

See all the latest Saab reviews, news and video

Add your comment

Log in or register to post comments

Find an Autocar car review

Driven this week

  • 2016 Audi A3 Sportback e-tron UK review
    First Drive
    29 September 2016
    First UK drive finds the facelifted A3 Sportback e-tron remains a first-rate plug-in hybrid that is packed with tech if a little short on driver appeal
  • Citroen C11.2 Puretech 82 Furio
    First Drive
    29 September 2016
    Citroën's city car gets a new sporty-looking trim level, adding visual adornments, but no premium for the 1.2-litre Puretech triple we're driving
  • Mercedes C350e Sport
    First Drive
    28 September 2016
    Petrol-electric C-Class is a surprisingly well-priced alternative to a diesel but not the greatest example of the new ‘PHEV’ breed
  • Car review
    23 September 2016
    Aston kicks off its ‘second century plan’ with an all-new turbo V12 grand tourer
  • Ford Ka+ 1.2 Ti-VCT 85
    First Drive
    22 September 2016
    A rounded, refined and well-sorted bargain supermini – once you’re used to the confusing role redefinition imposed on the once-cheeky Ka