July 11, 2011 / 12:50 PM / 8 years ago

Saab says deals inked with large part of suppliers

STOCKHOLM, July 11 (Reuters) - Struggling carmaker Saab said it had reached deals with many of its suppliers who have held back parts until it pays its debts, halting its production for most of the past three months.

Cash-strapped Saab, owned by Netherlands-based Swedish Automobile , has in recent days secured 61 million euros ($88.5 million) in short-term funding, but has yet to get parts flowing again so it can resume building cars.

The iconic Swedish carmaker said last week it was still in talks with suppliers on payment but it hoped to resume production on Aug. 9.

“We have reached agreement with a large part of our suppliers,” Saab spokeswoman Gunilla Gustavs said on Monday, adding that discussions with remaining suppliers continue.

“We aim for Aug. 9 — it’s an ambition, so that we can at least get everyone to work towards one date.”

Shares in Swedish Automobile were down 15 percent at 1224 GMT on what a trader said was doubts as to whether the company can restart production as planned next month.

Saab has in recent weeks also inked deals to secure long-term funding from Chinese car distributor Pangda and carmaker Zhejiang Youngman Lotus Automobile Co. These agreements still need to be approved by China, Sweden, former owner General Motors and the European Investment Bank. ($1 = 0.689 Euros) (Reporting by Anna Ringstrom; Editing by Jon Loades-Carter)

0 : 0
  • narrow-browser-and-phone
  • medium-browser-and-portrait-tablet
  • landscape-tablet
  • medium-wide-browser
  • wide-browser-and-larger
  • medium-browser-and-landscape-tablet
  • medium-wide-browser-and-larger
  • above-phone
  • portrait-tablet-and-above
  • above-portrait-tablet
  • landscape-tablet-and-above
  • landscape-tablet-and-medium-wide-browser
  • portrait-tablet-and-below
  • landscape-tablet-and-below