Friday, 14 October 2011

China's Youngman pays cash to Saab, gives it a second chance



Chinese car maker Zhejiang Youngman Lotus Automobile Co. gave ailing Saab a new injection of cash, Saab said on Thursday, keeping alive the Swedish car maker's hopes of survival.

The money is part of a 70 million euros ($97 million) loan planned by Youngman that is intended to see Saab through a period of creditor protection until Chinese authorities approve a bigger investment by Youngman and China's Pangda .That approval could come in weeks, Saab said.

The Swedish newspaper Dagens Industri reported that Saab had received about 100 million crowns or the U.S. equivalent of about $15 million. The money is part of a $97 million loan planned by Youngman until Chinese authorities approve a bigger investment by Youngman and Pang Da. It is not clear why Youngman is doling out the money in chunks.

The carmaker stopped production in late March when suppliers temporarily refused to deliver parts because they hadn't been paid. It owes them about 150 million euros.The assembly lines at its main factory in Trollhaettan have been completely idle since June, and it remains unclear when they will be able to restart.

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