AUTO INDUSTRY NEWS

Embattled Saab skips 2011 Frankfurt Show, Issues More Shares

Embattled Saab skips 2011 Frankfurt Show, Issues More Shares image

Text: / Photos: Saab Press | posted August 16, 2011 16:43

Saab soldiers on to its road of revival

Saab has decided that the company will not be present at the 2011 Frankfurt Motor Show.

Signifying its intent and dedication to restore operations, Saab management came to the conclusion that presence at the show requires resources that Saab are currently allocating towards the restart of production in Trollhattan. The embattled carmaker has expressed its regret as the show would have helped further Saab's global presence, it was deemed an inappropriate use of resources at this crticial time.

In its latest bid to infuse fresh funding to start its engines once again, the embattled Swedish Automobile N.V. (Swan), parent company of Saab is issuing 4 million new shares under the current EUR 150 million equity facility with GEM Global Yield Fund Limited. This follows a move earlier this year where Swan issued 5-million shares to GEM to pay off debts to suppliers and workers.

Saab's Trollhattan factory has halted production since April, and hopes for restarting remain bleak despite the carmaker's insistence that production would resume in August. Swan and Saab Automobile are still trying to acquire more short-term funding to revive the revive the embattled brand.