Saab has pulled out of the 2011 Frankfurt Motor Show due to a lack of funding and resources, and will focus on utililising what resources it does have to try to restart production at its Trollhattan facilities in Sweden. Saab has also announced it is offering 150 million euro ($206 million) worth of shares to GEM Global Yield Fund Limited.
Unfortunately Saab is continuing to struggle with funds and cashflow setbacks. It was only a couple of weeks ago it announced it had to offer shares to help pay its workers. This latest slice of the company’s stake to be put up for sale is said to generate around $5.8 million in funds.
Saab announced it was able to pay its workers thanks to the share offer last time, but the company also has bills to pay from its suppliers. Production has been halted a number of times this year, and is paused at the moment due to supplier’s bills not being paid.
Possibly rubbing more salt to the Saab wound is the fact it can no longer afford to attend the 2011 Frankfurt Motor Show next month. This could have been a great opportunity to reignite some of that spark with its fans, and also help keep the brand image on the map. Saab has announced it won’t be attending the event this year.
Saab production is expected to restart in a couple of weeks. If more shares are sold, and more funds are attainable, the company and production could be on its way to recovery. We’ll keep you updated.