STOCKHOLM — Crisis-hit carmaker Saab has struck a $40 million deal to sell and lease back property in an effort to improve its ailing finances that have forced it to halt production and withhold salaries.
If approved by Swedish and European regulators, Tuesday’s property deal could help Saab ease a severe cash shortage that has pushed the loss-making Swedish brand closer to bankruptcy. However, Saab’s future remains in doubt as it needs a lot more funding to stay afloat long term.
The announcement from Saab owner Swedish Automobile, a Dutch company previously known as Spyker Cars, comes a day after an $18.4 million car order from an unnamed Chinese company.
The deals have helped ease fears that the company was facing bankruptcy within days or weeks.
Despite the deals, analysts cautioned about the Saab brand’s future.
Tom Muller, an analyst at Theodoor Gilissen in Amsterdam, said Saab needs $70 million to $140 million in the next six months to stay afloat. The Associated Press
