Saab, Swedish Government Look to Secure Funding

At the Geneva Motor Show, Saab showed off its styling future with the PheoniX Concept. It appeared that with the new 9-5, 9-4X and refreshed 9-3 either on sale or going on sale, the brand's future prospects were improving. However, things aren't so rosy behind the scenes.

While the company's business plan was said to be funded until next year, the company's finances are in bad shape. The financial situation has worsened to a point where Saab is unable to pay key components suppliers, resulting production shutdowns at the Trollhattan plant in Sweden.

Russian businessman Vladamir Anotov is looking to invest in the company, helping to supply it with cash until sales recover and losses slow down. Bloomberg is now reporting that the Swedish government is stepping in to try to help the situation, getting a bank to supply with a short-term loan until the deal with Vladamir Anotov can be approved. The government is stepping in due to the fact it guaranteed Saab's $577 million loan from the European Investment Bank.

Saab's situation is looking increasingly dismal - to be facing such a perilous financial situation a year into independence is hardly confidence inspiring. However we think it deserves a chance to see how things shake out once all the new models (like the 9-3) are introduced and hit the market. Stay tuned for the latest on how the situation develops.