F&I Management & Training

Saab, the struggling carmaker that is being cut adrift by parent company General Motors, says more than 20 'active parties' are interested in buying it. A deal could be completed in June. Meanwhile, a Swedish court has given Saab more time to restructure in bankruptcy as it seeks an investor. Saab filed for creditor protection on February 20 and now can continue its reorganisation until May 20, after which it can apply for another three-month extension. The manufacturer says it needs to secure $1 billion of financing to remain liquid and see four new models to market. GM says that it is willing to contribute $400 million of that amount in kind, and has applied for the remaining $600m from the European Investment Bank. Saab plans to introduce the four new cars over the next 18 months and achieve positive cash flow in 2011, by which time it said it would be selling 150,000 cars. Saab sold just over 93,000 vehicles last year and says it needs to make 130,000 to break even.

DATED: 08.04.09

FEED: AW