Saab gets funding boost

* Orders worth 11.5m * Will pay staff wages * Long-term problems continue...

Saab gets funding boost

Saab has received a large order for cars that should give it the short-term cash boost it urgently needs.

An unnamed Chinese company has placed an order for 582 Saab vehicles worth 13m Euros (around 11.5m). It is expected to pay for them this week.

Last week Saab announced that it couldnt afford to pay the wages of its staff in Sweden, prompting reports that the firm might have to declare itself bankrupt. Saab says it can now afford to pay its employees and also make partial supplier payments. Production at Saabs Trolhattan factory is on hold, because Saab doesnt have the cash to buy parts.

Victor Mueller, CEO of Saab Automobile, said: 'We very much regret the current cash shortage which is causing undeserved hardship to all and we are working relentlessly to resolve the situation.

'We hope to secure additional short-term funding, which is necessary to reach agreement with all of our suppliers and restart production, soon. '

Vladimir Antonov, a Russian banker, has stated his interest in buying a stake in Saab, but a decision on his involvement hasnt yet been approved. Saab is also hoping to raise funds through the sale and lease-back of its property.