Saab deal expected by the summer

* Sale expected by end of June * Saab expects to return to profit by 2011 * New models pivotal to success...

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What Car? Staff
7 Apr 2009 11:35 | Last updated: 14 Jun 2018 00:03

Saab has around 20 potential buyers interested in buying the company and expects it to be sold by the end of June, according to reports.

The interested parties have not been identified, but China's Dongfeng Motor Corporation is thought to be among them.

The information was released yesterday at a court hearing in Vaenersborg, Sweden, where Saab put its reorganisation and business plans to its creditors.

The news comes six weeks after the firm sought bankruptcy protection from creditors following General Motors' announcement that it would cut links with the unprofitable Saab within a year.

Saab is also applying for a total of $1 billion (around 700 million) worth of support from the European Investment Bank and General Motors in an attempt to become profitable by 2011.

The manufacturer is also preparing to release three new models in the next 18 months. This is an important shift in strategy after the company's chief executive, Jann-Aake Jonsson, described Saab's thin product base as its 'Achilles heel' in Monday's court hearing.

Future releases include the 9-3X later this year and the 9-4X and new 9-5 in 2010.